I thought it would be great to create a thread with useful information for all traders who want to find out how the FX markets operate, a one stop center that answers all questions regarding how the big fish and the small fish interact and transact in FX.
All ideas and comments are welcomed, what are your ideas on how the FX market operates and what would you say about the big fish and the small fish? All fish are welcome!
For myself personally there are several theories that I have read regarding trapped traders, stop loss runs and accumulation and distribution, have you heard of these theories and do you think that they are true or a myth? What are your ideas surrounding these theories?
If we are placing trades in the worlds largest markets, the currency markets, for example: EURUSD, then we are dealing with the worlds largest money market, with the most capital involved, billions and trillions in fact. If the banks are the main players, and the players have been around for years, then there must be order. The market cannot therefore be chaos.
If there is order, it is our duty to find out the logic to the order. If we have the worlds largest banks operating in the worlds largest markets, then we must also subscribe to the fact that the sizes of trades are also large. A large tanker in port needs a large amount of time to turn around itself around, if it spun around quickly it would create a tidal wave. It would need time and patience to do so properly without causing a ripple...
Also wouldn't the tanker would need sufficient time to fill up or unload its payload in port, with specific vehicles or equipment to help aid the transfer of the payload to and from its destination?
All ideas and comments are welcomed, what are your ideas on how the FX market operates and what would you say about the big fish and the small fish? All fish are welcome!
For myself personally there are several theories that I have read regarding trapped traders, stop loss runs and accumulation and distribution, have you heard of these theories and do you think that they are true or a myth? What are your ideas surrounding these theories?
If we are placing trades in the worlds largest markets, the currency markets, for example: EURUSD, then we are dealing with the worlds largest money market, with the most capital involved, billions and trillions in fact. If the banks are the main players, and the players have been around for years, then there must be order. The market cannot therefore be chaos.
If there is order, it is our duty to find out the logic to the order. If we have the worlds largest banks operating in the worlds largest markets, then we must also subscribe to the fact that the sizes of trades are also large. A large tanker in port needs a large amount of time to turn around itself around, if it spun around quickly it would create a tidal wave. It would need time and patience to do so properly without causing a ripple...
Also wouldn't the tanker would need sufficient time to fill up or unload its payload in port, with specific vehicles or equipment to help aid the transfer of the payload to and from its destination?