As I always say, trading is not rocket science. This is a well-known fact and it is indisputable. Hey Lila, Glad to hear you do well with this. The course is important just as it is in learning to fly, but the most important part was having the instructor sitting in the right seat actually SHOWING me how to do everything. This is where banks of all sizes trade currency with each other and through electronic networks.
Bank traders only make up 5% of the total number of forex traders with speculators accounting for the other 95%, but more importantly that 5% of bank traders account for 92% of all forex volumes. So if you don’t know how they trade, then you’re simply guessing.
Who Trades Forex?
Central banks are responsible for forex fixing. This is the exchange rate regime by which a currency will trade in the open market. Exchange rate regimes are divided into floating , fixed and pegged types.
Any action taken by a central bank in the forex market is done to stabilize or increase the competitiveness of that nation's economy. Central banks as well as governments and speculators may engage in currency interventions to make their currencies appreciate or depreciate.
For example, a central bank may weaken its own currency by creating additional supply during periods of long deflationary trends, which is then used to purchase a foreign currency. This effectively weakens the domestic currency, making exports more competitive in the global market.
Central banks use these strategies to calm inflation, but this also serves as a long-term indicator for forex traders. Investment Managers and Hedge Funds Portfolio managers, pooled funds and hedge funds make up the second-biggest collection of players in the forex market next to banks.
Investment managers trade currencies for large accounts such as pension funds , foundations and endowments. An investment manager with an international portfolio will have to purchase and sell currencies to trade foreign securities.
Investment managers may also make speculative forex trades, while some hedge funds execute speculative currency trades as part of their investment strategies.
Corporations Firms engaged in importing and exporting conduct forex transactions to pay for goods and services. Consider the example of a German solar panel producer that imports American components and sells the final goods in China. After the final sale is made, the Chinese yuan must be converted back to euros. The German firm must then exchange euros for dollars to purchase the American components.
Companies trade forex to hedge the risk associated with foreign currency translations. The same German firm might purchase American dollars in the spot market , or enter into a currency swap agreement to obtain dollars in advance of purchasing components from the American company in order to reduce foreign currency exposure risk. Additionally, hedging against currency risk can add a level of safety to offshore investments. Individual Investors The volume of trades made by retail investors is extremely low compared to banks and other financial institutions.
A group of dealers who have worked in the spot Forex industry for decades have admitted that traders at some of the largest banks in the world are taking advantage of the second windows when rates are set, to plump up their own trading portfolios. They are published once every hour for currency pairs, and once every half-hour for 21 pairs. The rates are based on a median of all trades in the 60 seconds before each period. This is where the traders' scheme comes into play.
Usually, asset managers and companies place orders with banks at a specified time, say 4 PM London time. They wait until the last moment in order to make sure the bank won't play against them.
However, bank traders have learned to use this concentration of orders to move the benchmark rate up or down in order to maximize their own profit. For example, a trader who receives an order at 3: The trader's profit would then come from the difference between the benchmark rate and the price at which he sold his euros. Having the freedom to do as you like, and the money to support that freedom is something forex trading offers to all of us, but only if we are willing to work for it. Everyone reading this knows most traders fail.
Everyone reading this knows the general ways most trade. Therefore if you are using a forex trading strategy used by the masses I strongly urge you to give some serious thought as to why you feel the outcome will be different for you? Therefore I again urge you to take in this free information, give it some thought, and apply it in your trading!
I say this not to offend anyone but rather in a sincere effort to get everyone reading this thinking about the facts. Either way I sincerely wish you all the best and I truly hope I can serve you in your progression as a forex trader.
That is the most inteligent aproch to FX market — To learn the rules of the game , you have to climb on the tower platform and not through keyhole into door. As I always say, trading is not rocket science. All sure wins are obvious patterns on the chart. There is a ranging period travelling in a well-defined channel, a retracement to an indicator your broken line looks like the 21 SMA to me and a sudden push forward as it breaks through a pivot line.
You know it goes a long way when the resistance is broken. You can do this when you position yourself well. Glad to hear you do well with this. The key is understand what is being accumulated…and thus which direction you should be looking for the manipulation.
I know this is kind of off topic but I was wondering which blog platform are you using for this site? I would be great if you could point me in the direction of a good platform. I sent you an email on how to improve your security with wordpress. Our site is a WP platform and since we have improved our security we haven had much problems with hackers. This makes a lot of sense.
You may have mentioned it somewhere, but what time frames were being used for the charts provided? Are there specific ones that the phases should be looked for using? We use the 15 minute time frame for entries but also look at the hourly charts to build a bias for the day.
If its clear we look mainly for signs in that direction otherwise we look for the clear manipulation at the high probability levels we als get from the hourly charts. There is also the EMA showing us where the H1 ema is on the 15 minute chart. Just watching the course would do you no good.
This is why traders fail. Its like learning to fly an airplane by reading a course or learning to do brain surgery by reading a course and watching some videos. When I learned to fly an airplane I had an instructor that spent the first 20 hours of flight time with me before I was able to solo. This is the same in forex. The course is important just as it is in learning to fly, but the most important part was having the instructor sitting in the right seat actually SHOWING me how to do everything.
The amount of trades we have each week varies. If you go look under the Recent Trades tab on the site you will find the last 6 months of trading results. Each post has a video for every month. Therefore the amount of trades you can get each month can vary wildly based on the amount of pairs you trade.
We only trade from Since we are looking to track banking activity we want to trade during the most active times when the highest liquidity is being traded. Look for the first close outside the Asia range on the M15 time frame.
If the first move was a fake, you nearly always get 20 pips in the fake direction, before price reverses into the intended direction. Same method with 2 lots. Between those two boxes is a price dip and then the price returns to the accumulation range.
My question is how is the first dip not to be miss-interpreted to be a manipulation that would represent a buy signal? Thanks a lot sir for your magnanimity in this handout. You are one of the few most sincere and great Forex teacher I have came across on the internet in the recent times. The information you provided here is equal to none and we appreciate you for that and remain eternally grateful to you!
What Is Forex?
How the Banks Trade Forex Armands Posted 24 June in #Article Contest #Banks #Manipulation. 4/ Ranking. In this article I will show you the way I look at the market now. At the very beginning when I started trading I was excited about all different kind of indicators and strategies. The big fish inevitably have an inpact on the market. Banks trade within Electronic Communication Networks, or ECNs, which connect the world's leading banks together. Currently, Currenex was voted by Global Finance as the best FX Bank Trading System. It won the award as it offers prices from 70 of the world’s biggest banks. Singapore is one of the Forex trading hot spots on the planet. I live in Chicago in the USA but also spend time in Singapore. When I am with Singapore traders, I notice some of them are trying to make so many different strategies work in the Forex market yet none are achieving the success they are in search of.