Can Banks and Financial Institutions Diminish profits of Retail Forex Traders?
There is this notion that many retail forex traders are ignorant of the fact that banks and other financial institutions influence the direction of the currency market movement.
As a result only a handful of them who are aware of this, just about 2 percent of forex traders, take advantage of it and make significant profit from the market.
In other words those who make profit place forex trades based on the knowledge of pending orders from the banks and other financial institutions who as it were are believed to have control over eighty percent of daily forex trading volume.
The question then is how do you know when these banks and other financial institutions are placing their orders? Placing orders for foreign exchange transactions in banks and other financial institutions can not be an extraordinary event. It must be as routine as normal banking transactions.
In fact, I believe that forex requests are placed as demands come in. However after midday probably, daily requests may be closed. If that be the case then it is as simple that between 9 a.m and 12 p.m. retail forex traders can as well make their own small profits as banks cart theirs away in millions of dollars.
It is then left for individual forex traders to take advantage of the trading times- opening and closing times of the various global forex markets. These markets include the European Market from London, the American Market in New York, the Asian Market at Tokyo, the Australian Market at Brisbane etc.
The over $3.0 trillion dollars in the daily forex market cannot be exhausted by banks and other financial institutions such that small time retail traders cannot make their own million of dollars too.
All it requires is proper training, being focused and exercising self control over greed and other hindrances.
I suppose that retail forex traders pay great attention to fundamental and technical analysis, [which the banks and other financial institutions do not do probably due to the volume of funds they bring into the market], simply because it guides their decisions making processes while trading on a smaller scale. So it is safe to say that these tools are forex trading precision tools.
In conclusion I make bold to say that no matter how much the big banks and other financial institutions influence the market price movement and direction, by virtue of the volume of dollars they bring into the market, the small time retail forex traders will always cart away their own thousands hundreds of thousands if not millions of dollars.
There is this notion that many retail forex traders are ignorant of the fact that banks and other financial institutions influence the direction of the currency market movement.
As a result only a handful of them who are aware of this, just about 2 percent of forex traders, take advantage of it and make significant profit from the market.
In other words those who make profit place forex trades based on the knowledge of pending orders from the banks and other financial institutions who as it were are believed to have control over eighty percent of daily forex trading volume.
The question then is how do you know when these banks and other financial institutions are placing their orders? Placing orders for foreign exchange transactions in banks and other financial institutions can not be an extraordinary event. It must be as routine as normal banking transactions.
In fact, I believe that forex requests are placed as demands come in. However after midday probably, daily requests may be closed. If that be the case then it is as simple that between 9 a.m and 12 p.m. retail forex traders can as well make their own small profits as banks cart theirs away in millions of dollars.
It is then left for individual forex traders to take advantage of the trading times- opening and closing times of the various global forex markets. These markets include the European Market from London, the American Market in New York, the Asian Market at Tokyo, the Australian Market at Brisbane etc.
The over $3.0 trillion dollars in the daily forex market cannot be exhausted by banks and other financial institutions such that small time retail traders cannot make their own million of dollars too.
All it requires is proper training, being focused and exercising self control over greed and other hindrances.
I suppose that retail forex traders pay great attention to fundamental and technical analysis, [which the banks and other financial institutions do not do probably due to the volume of funds they bring into the market], simply because it guides their decisions making processes while trading on a smaller scale. So it is safe to say that these tools are forex trading precision tools.
In conclusion I make bold to say that no matter how much the big banks and other financial institutions influence the market price movement and direction, by virtue of the volume of dollars they bring into the market, the small time retail forex traders will always cart away their own thousands hundreds of thousands if not millions of dollars.
