Posts Tagged ‘forex trader’
An Inpact Of Big Funds On Forex Market
September 16th, 2010
It is evident that in Forex Market both profit value and the ability to direct the price movements depend on the size of a capital. Banks have the highest influence on the market as they trade with the biggest amounts and can deliberately move the price of the currency in order to support the macro economy of a country or just make a good profit. An average online trader, even with a relatively solid capital cannot change the market to the certain level. Even the biggest traders in Forex are not able to take a full control of the price movements. A fierce fight happens on the Asian markets for such currencies as USD/JPY, EUR/JPY. On the one hand many Singapore Forex traders use this phenomenon in order to increase their funds, but on the other hand it is a very risky game. The fact is that technical analysis of Forex market cannot predict news which for a short time can move the price for 100 pips and lead to the opposite direction.
At certain hours of a day Foreign Exchange market becomes very calm and even freezes because of the breaks in the main trading centers in the world. When trading starts in USA it is the most active time in the market in terms of technical analysis. While staying in the market alone, US banks can urge big price movements for up to 1000 pips. They target to push the price to the levels of massive stop-losses of the traders who traded in the opposite direction. If they succeed, the total closure of the positions radically changes the direction of the market. This system brings high profits in a short period of time. If you study the market, you can notice these tricks and may use them for increasing of your own funds.
The international financial markets attract a concentrated attention of the entire world and each piece of news brings its own movements in currencies’ rates on the Forex market. Experienced Forex traders know the presidents of the major banks by their names because any phrase from their speech may cause big changes of a price. We cannot ignore the fundamental analysis of Forex market. Today any trading platform provides its traders a news strip of the most recent financial news. And on the websites of all Singapore brokers you can find a financial calendar which presents the time of the main news releases. You can build a trading strategy focused on the news or simply close a trading position before the announciation of the most important of them. In any case, every Singapore trader must take into his consideration such points as time of trading, news and noise of the market.