I am sure you are alway wondering yourself this when entering the forex market. Am I entering at the right time? Will I win or lose now.. Even if you have traded for years or is still trading a demo foreign exchange account, this question will constantly pop up at your head. Can I long or short now? Is the marketplace right for me to do that?
To answer this question, we need to analyse the current 10kto1mm trend.
We need to understand that we cannot control the forex market. It is the opinion of majority that decides the direction of the market. All traders must follow what the market is doing. If it desires to go up, then up shall be our trade. If it goes down, then we will follow it down. So how do we define the trend and when do we exactly follow the pattern.
In Forex the largest group of traders by far, are Commercial traders. The results of their positions can be seen each week at the CFTC site under the Commitment of Traders Report. Remember these group of big traders are in the forex market for months and years. Their opinion would not change very fast. They want to make slow and good money. They don’t care about the minor changes in price.
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.
The second group of traders are Non-Commercial traders who speculate. They are trying to make money in the oracle trader market for themselves and their clients. So do you think they have sufficient power to move the market in any way? Well I dont know.
Don’t undermine their ability to move the forex market. If they pull their funds together and happen to have the same judgement on a particular currency. They can move the forex market for a few hours or even days. Power comes when unity is there. Does this help us answer the query of when to enter the market?
Here is a buying and selling situation you can look into. Say we have a large company about to invest in something that requires U.S. Dollars. The We if without any first hand details would surely overlook this. But banks and other related investing companies would probably heard of it due to a sharing system existing between them.
Rumours begin to spread like wild fire. More banks know about this and their big clients also get to know.
Most retail traders using technical 10k to 1mm evaluation would then see the funds moving in the currency on their trading charts. Perhaps this occurred in the starting of the New York session and by 4PM the Dollar had gained 100 pips against the pound. Sharp retail dealers would have been looking for this kind of trade every day. Depending on the type of trading process they would have seen more than just the bars or candles moving on their graphs, they would also see momentum changes.
I am sure you are alway wondering yourself this when entering the forex market. Am I entering at the right time? Will I win or lose now.. Even if you have traded for years or is still trading a demo foreign exchange account, this question will constantly pop up at your head. Can I long or short now? Is the marketplace right for me to do that? To answer this question, we need to analyse the current 10kto1mm trend. We need to understand that we cannot control the forex market. It is the opinion of majority that decides the direction of the market. All traders must follow what the market is doing. If it desires to go up, then up shall be our trade. If it goes down, then we will follow it down. So how do we define the trend and when do we exactly follow the pattern. In Forex the largest group of traders by far, are Commercial traders. The results of their positions can be seen each week at the CFTC site under the Commitment of Traders Report. Remember these group of big traders are in the forex market for months and years. Their opinion would not change very fast. They want to make slow and good money. They don’t care about the minor changes in price. 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. The second group of traders are Non-Commercial traders who speculate. They are trying to make money in the oracle trader market for themselves and their clients. So do you think they have sufficient power to move the market in any way? Well I dont know. Don’t undermine their ability to move the forex market. If they pull their funds together and happen to have the same judgement on a particular currency. They can move the forex market for a few hours or even days. Power comes when unity is there. Does this help us answer the query of when to enter the market? Here is a buying and selling situation you can look into. Say we have a large company about to invest in something that requires U.S. Dollars. The We if without any first hand details would surely overlook this. But banks and other related investing companies would probably heard of it due to a sharing system existing between them. Rumours begin to spread like wild fire. More banks know about this and their big clients also get to know. Most retail traders using technical 10k to 1mm evaluation would then see the funds moving in the currency on their trading charts. Perhaps this occurred in the starting of the New York session and by 4PM the Dollar had gained 100 pips against the pound. Sharp retail dealers would have been looking for this kind of trade every day. Depending on the type of trading process they would have seen more than just the bars or candles moving on their graphs, they would also see momentum changes.
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