Is trading an art or a science? This topic has been discussed in the trading community for ages. Many people say that trading is a form of art because they feel that trading requires some qualities that are very subjective for one to be successful.
The other half feel that trading is a science because all that one needs to do is analyze the market and use statistics to understand what the market is going to do next. Visit BTC Profit review
There is another lot who have mixed opinions and they feel that trading is a mix of art and science.
What is the difference between art and science
Art is an expression and according to an aesthetic principle. Science is a study based on derivatives from observation. Art is totally subjective while science is backed by principles and theories.
So how would you classify trading? Is it subjective like art or is it backed by theories like science? Trading honestly does not fall into any of the two categories purely.
Trading falls somewhere in between
Trading is a skill but at the same time, there is also some science behind this skill. Trading can be classified as a science because there are methods and logic behind why particular trade has to be taken. Like for example, you see the trend of the market and trade with the trend of the stock. This is a science because there is logic involved in why this happens.
Like for example, there is a reason why you should be a buyer in an uptrend and a seller in a downtrend. This is because that is the dormant force in the stock. Uptrend means that the stock market has a number of buyers and thus it makes sense to be a buyer in the market. Similarly when in a downtrend the bears are in force then this means that those sellers are in control. Ways to use multiple time frame analysis and why to see different chart time frames to arrive at your decision to take a trade is all based on logic. This definitely can be categorized under science.
But on the other hand, the ability to spot the trend or to look for high probability levels can be subjective. What may look like an uptrend to you, at least at the start of the move, may not seem the same to someone else. Also what may look to you as a strong level of demand may not look the same to some other trader. This makes the decision very subjective.
If trading was a pure science then there would be no trading at all. This is why if it was absolute with logic and not subjective at all then all would have the same view on the stock at one particular time and thus if one was a buyer then all would be a buyer. If there would be no seller at all then that would not have formed a market in the first place.