Translated from Russian by Google Translate
2 Сентябрь 2009

Major players in the forex market

I think that among the vast majority of traders are unlikely to be found even one who does not wish to increase the likelihood of profit. It then would have to give an accurate analysis of the market far less time. Perhaps, it would seem that this is unrealistic, but in reality it is not. If you look at the forex market through a prism and draw appropriate conclusions, it becomes possible.


If you have a little vnikli the essence of trading, you should know that the money that you make on the spot market, may not have a significant impact on price movement, unlike the big players, whose multimillion-dollar deposits are able to move it in the right direction . Therefore begs the reasonable conclusion that the FX market does not give you the opportunity to play exactly the same as the big players, so you need to look for something new, his. Today I tell you about an interesting strategy. It is called «fundamental acceleration». By using this strategy, you will have a much greater chance to influence the outcome of events.

Who can be classified as major players?

First of all, banks and governments. Not without the help of banks going global movement of funds between various financial (and not only) institutions. You should know that the policies pursued by such banks is strong enough impact on the FX market.

With regard to the government, they can influence developments in the foreign exchange market through the publication of key data. The most important data include the interest rate. It shows the cost of loans.

It is for this reason, all private traders do not have to think that their money could have a significant impact on the FX market, and proceed from the fact that they have only negligible impact on the currency market. It is with this in mind and developed a strategy «fundamental acceleration». Its peculiarity lies in the fact that it focuses on the correct timing for transactions. Moreover, using this strategy, you need to monitor key economic indicators. These indicators should be selected in such a way as to reflect the impact of those currencies that you trade.

How does the strategy

1. The first thing to do is pick up the most important economic releases, which have a significant impact on the FX market. If you analyze the situation, you will see that every day goes a lot of economic releases, and only some of them can have a significant impact on the market. Consequently, not all of them can be traded.

I advise you to give priority to the following data:

• The volume of retail sales
• Data on unemployment
• Consumer price index
• The situation on the interest rate
• The level of consumer confidence
• Trade balance

By the way, note the release calendar of economic news. Most companies that produce these calendars made it a rule to mark important news in red, so here you can hardly go wrong.

2. Be sure to set a date for the entry and exit into the market

Given those characteristics which we have described above (marginal impact of capital smaller players) you need to develop a reliable exit strategy from the market. And the feature of this system should be that it should be based not on emotions but on the system.

After the important economic data come out, good price movement there for a few minutes. Quite often it may seem that after the release of important data price makes random motion. But in reality it is not. At this time, quite often the banks and governments are trying to stabilize its national currency. For banks interested to get a better rate for a transfer. We should know that these attempts to influence the forex market is beyond our control. If the current data show movement toward day moving average, then open transaction can be kept open until about 5 minutes. However, in any case, try to get statistical evidence.

3. In an uncertain situation to do nothing

If you really assess the current market situation as unpromising, then try to keep myself in hand and do not enter the market. It is important to be able to overcome their emotions, because it is one of the biggest obstacles to trade.

The more there is a risk, the greater the profit.

For any trader is very important that the probability of a successful transaction was as much as possible is great. The greater the percentage of winning trades you have, the greater the eventual total revenue, which would be in your pocket. If you trade on the system, you can do an analysis of probabilities of all their transactions, as well as be able to assess which ones are profitable and which are not. Here is some more advantages of the strategy of the fundamental acceleration.

- You can set your own time frame trade. Forex market operates 24 hours a day, so the choice you have big enough. Another thing that should be able to choose the optimal time to trade. Some trades only in the evening, someone - only in the morning, but the main thing here - is to understand the importance of the regime. Using the strategy of the fundamental acceleration, you’ll know when to sell it to you.

- You will spend much less time for assessment and market analysis. For beginners to do market analysis with technical analysis is not easy, but eventually, as a set of skills, experience the connection of technical analysis and fundamental acceleration method will produce positive results in the form of a fine-tuned an exit strategy. But my advice to you: if you are just beginning to comprehend the basics of the forex market, it is best to start with the study of fundamental data, trying to cut a graphical analysis.

Conclusion

Quite often have to read in the various literature that the major players in the forex market are private traders. I do not dispute that there are too many influential people, but they are unlikely to be regarded as the main actors of the currency market. «Weather» the forex market is set banks and governments that have the greatest impact on price movement. So, in essence, the true masters of the forex market are the very banks and governments. From the individual trader is required only an understanding of this and adjust their trade in accordance with these features.