In reality, chaos theory is basically simply. It is applicable to all markets that are freely traded. The purpose of this series of articles is to explain the basics of chaos theory for the average trader. Before beginning, let me differentiate between trading and investing.
Investors shop for value.
They typically use a buy and hold approach. They are buying something, like a stock, and holding it for the long term. Trades take the approach that timing is everything. They will buy and sell for short term gains based purely on the price action. Traders are shopping for volatility.