TWC Forex

Any suggestion when you are able to distribute or long the foreign exchange

Posted on 31. Jul, 2010 by TWC Contributor in Forex

Every traders ask this question when they trade. Should I get in now? Is this correct time? Even if you have traded for years or is still trading a demo forex account, this question will generally pop up at your head. When do you “pull the trigger”? Before we answer that we need to comprehend what is happening on a day-to-day basis in the Foreign exchange market. I like to recommend you these forex tool ;10kto1mm.

We need to understand that we cannot control the forex market. It is the opinion of vast majority that decides the direction of the market. If you are trading the Pound/Dollar then you want to place your order when demand for the Pound is increasing or demand for the Dollar is increasing. Thus knowing that we have to follow the market course and not force it. How can you determine the direction and execute your trade? In Forex the largest group of traders by far, are Commercial traders. I always want to know the tendency of these largest group of traders. What are they thinking now? Have they being bullish or bearish? Luckily we have this traders commitment report at CFTC website. Commercial traders DO NOT try to make money from their currency transactions. They are not interested in Volatility but Stability. They are like a big ship going one course that takes time and effort to turn. Even more than that, they resist turning. Their goal is stable prices in order to run their organizations, countries, and institutions.

Now come to the next group of traders below them. They are the individual speculative traders. They are trying to make money in the Forex market for themselves and their clients. While their funds are much smaller, a combined group can still cause a small ripple in the forex market. However, sometimes when the news are favourable or really bad. These group of 2nd tier traders can also move together at the same time. When their entire funds move at the same time, you can be sure that the foreign exchange will experience a short term earthquake. Do you think these two group of currency traders can help you understand more when to buy and sell? Perhaps lets make up a circumstance here. We receive news that a big US company has decided to diversity some of their funds into the forex market. Retail traders, you and I, don’t know about this obviously. But banks and other related investing companies would probably heard of it due to a sharing network existing between them. I am not sure if this forex product can help you increase your winning odds ,oracle trader.

Rumours begin to spread like wild fire. More banks know about this and their big clients also get to know.

The normal chart traders see this movement on the charts. The movement continue to happen , funds continue to pour in. By the end of the US market exchanging, you would have see a 200 pips again of USD dollar on GBP. Those retail investors like us wish that we have see this coming in. Still there would be traders catching this movement on their computer. Just by reading the charts, they can count on some usual trading overhead breakouts happening.