Explaining Chaos Theory is not easy. I am merely going to focus to get closer to it and try explaining in my paper the basics of so called ’Chaos Theory’. To do that in financial sence,of course, it might be the best way to try analysing from macro stand point looking at world as a hole, looking at the big picture. Science is trying to explain chaos as long as it exists and try to extrapolate the formula for it, trying to get the predictions as accurate as possible. Since its inception, science relied on predictability and order. The true beauty of science was its uncanny ability to find patterns and regularity in seemingly random systems. For centuries the human mind as easily grasped and mastered the concepts of linearity. Physics illustrated the magnificent order to which the natural world obeyed. If there is a God he is indeed mathematical. Until the 19th century Physics explained the processes of the natural world successfully, for the most part. There were still many facets of the universe that were an enigma to physicists. Mathematicians could indeed illustrate patterns in nature but there were many aspects of Mother Nature that remained a mystery to Physicists and Mathematicians alike. Mathematics is an integral part of physics. It provides an order and a guide to thinking; it shows the relationship between many physical phenomenons. The error in mathematics until that point was linearity. Quote: “Clouds are not spheres, mountains are not cones, bark is not smooth, nor does lightning travel in a straight line.” The secular definition of chaos can be misleading when the word is used in scientific context. The word caos in dictionary is defined as total disorder. The scientists, mathematicians and intellectuals present were hesitant to define a concept in my opignion they did not truly understand yet. They left the scientific community with a rather cryptic and oxymoronic definition of chaos. The principles of Chaos Theory are complex and abstract....

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