Chaotic systems are divided into two categories: monadic chaotic systems and binary chaotic systems. Let's talk about monadic chaotic systems first. Monadic chaotic systems are chaotic systems that can be accurately predicted. For example, the weather system is a monadic chaotic system. Because with the development of science and technology, the use of meteorological satellites, you can look down on the earth from space, observe satellite cloud charts, and then use computer analysis systems, you can make accurate predictions of the weather, with a variety of factors affecting the weather changes are constantly being added to the prediction system, you can make the weather prediction more and more accurate, so it is said that it is a monistic chaotic system.

A binary chaotic system is one that cannot be predicted. Because it will keep changing with the prediction, and finally make the prediction change. For example, the secondary market, which is the stock market we often talk about, is a binary chaotic system. The value of a stock will fluctuate up and down with the changes in valuation, when favorable events occur, people will generally perceive that the stock price will rise, when ready to buy found that it is already too late, the market will be a step ahead of the reflection, resulting in people chasing up and down, to become the market harvested "leek". The stock market can not be predicted it will always be a step ahead of people to reflect. In the price of crude oil, for example, when someone predicts that tomorrow it will rise to 100 dollars a barrel, because many people look favorably on and buy, so that the supply and demand relationship changes, supply is less than demand, resulting in higher prices, so that it will rise quickly today to 100 dollars a barrel or even far more than 100 dollars a barrel, rather than tomorrow. However, the market also has an amplifying effect, in which bubbles are created as a result of valuations far in excess of actual value, so it is impossible to accurately predict this binary chaotic system.

According to Binary Chaos Theory, we should always be in awe of the market. Although the trend of the stock is unpredictable, we can be optimistic about a listed company for a long time, regardless of the momentary fluctuation of the stock price, but adhere to the long-term value investment, you will have a different experience.