An Inpact Of Big Capitals On Forex Market
Tuesday, September 7th, 2010It is clear that in Forex Market both profit value and the ability to direct the price movements depend on the size of the funds. Banks have the highest influence on the market as they trade with the biggest amounts and can deliberately change 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 big capital cannot direct the market to the certain direction. Even the biggest members in Forex are not able to take a full control of the price movements. A big fight takes place 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 investments, but on the other hand it is a very risky trading. The fact is that technical analysis of Forex market cannot predict news which for a short time can change 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 opens in USA it is the most unpredictable time in the market in terms of technical analysis. When staying in the market alone, US banks can urge big price movements for up to 1000 pips. They aim to push the price to the levels of massive stop-losses of the traders who opened positions in the opposite direction. If they succeed, the total closure of the positions radically changes the direction of the market. This process brings high profits in a short period of time. If you study the market, you can notice these tricks and may use them for enlargement of your own capital.
The international financial markets attract a concentrated attention of the entire world and each piece of news has 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 word from their speech may cause big changes of a price. We cannot neglect the fundamental analysis of Forex market. Today any trading platform gives its traders a news strip of the most recent financial events. And on the websites of all Singapore brokers you can find a economic calendar which presents the time of the main news releases. You can make a trading strategy based on the events or simply close a trading position before the release of the most important of them. In any case, every Singapore trader must take into his consideration such issues as time of trading, news and noise of the market.

