What forex discount brokers the consistency principle? The Consistency Principle consists of three parts: Sticking to Assumptions Unless Overturned by the Market Trading System Stability forexrebatesbrokers Improving Technical (Behavioral) Analysis versus Fundamental (Driven) Analysis Misconceptions (1) Lets look at the first "Stick to Assumptions Unless Overturned by the Market" Usually we judge whether the market has overturned based on horizontal support and resistance lines. Our previous hypothesis is forexdiscountbrokers if we think the market has a higher probability of moving up, then we should enter the market at the nearest confirmed support position and set a stop loss below the support position. Because we assume that the market runs above this support position indicates that the trend is still up, if the market falls below this support is down this is a hypothesis, unless the market falls below this stop loss, we are cashback forex free to exit the field of Soros, one of the benefactors of the proposed falsifiable, we set a stop-loss indicates that we misjudged the conditions, that is, we assume the conditions, which provides the forexbonusrebate falsifiable If we do not set a standard for trading error, or if the standard is too vague, then we believe that the trade is always correct, that is, unfalsifiable, which is not in line with the spirit of scientific trading, so not setting a stop loss means that you think your assumptions can not be wrong, your view of the market is not wrong. Insisting on setting a stop loss is insisting on the falsifiability of trading, and only by insisting on falsifiability can the level of trading improve This is our development of Hayeks ideas in trading, i.e., an extension of Soros antinomy theory, showing that in addition to human incompleteness, trading has attention to providing conditions that can prove error, i.e., setting a stop loss For readers who do not understand falsifiability (2) Lets look at the second "trading system stability and improvement" trading is a probability game, only multiple times with the same method to measure the performance of the trading method, so the transaction to maintain consistency, can not always and often change the trading However, the principle of consistency is relative consistency, that is, after a period of actual testing, sufficient trading samples can provide the data needed to improve the trading system, then the trading system can be improved, but the improved trading system must be fixed for a period of time. Many new traders and most of the traders who fail have no trading rules at all, or change them frequently, and make very arbitrary and subjective judgments in each trade. The third "misunderstanding of the dichotomy between technical (behavioral) and fundamental (driving) analysis" is that the biggest misuse of the principle of consistency is that technical analysis cannot be used in conjunction with fundamental analysis, which is not based on theory or practice. Therefore, the two are not opposed to each other, through the traders emotions can connect the two; secondly, the actual forex trading, some successful traders on a combination of these two methods, through the fundamentals to determine the market conditions, is the trend or wicker, and then through the technical side to trade the most critical is not whether the technical and fundamental opposing, with the fundamental without the technical side is to follow the principle of consistency, but whether the adoption of the These guidelines can of course consist of a mixture of fundamental and technical analysis