Sep 10 2010
It is not a secret that in Forex Market both profit value and the ability to influence the price movements depend on the size of the funds. Banks have the biggest influence on the market as they trade with the largest capitals and can deliberately alter the price of the currency in order to support the macro economy of a country or just make a good profit. An average currency trader, even with a relatively big capital cannot direct the market to the certain direction. Even the biggest players in Forex are not able to take a full control of the price movements. A fierce 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 moment in order to increase their funds, but on the other hand it is a very risky strategy. The thing is that technical analysis of Forex market cannot forcast news which for a short time can change the price for 100 pips and lead to the opposite trend.
At certain hours of a day Foreign Exchange market becomes very slow and even freezes because of the breaks in the main trading centers in the world. When trading starts in USA it is the most unpredictable time in the market in terms of technical analysis. While staying in the market alone, US banks can urge big price movements for up to 1000 pips. They try to push the price to the levels of massive stop-losses of the traders who traded in the opposite direction. If they succeed, the total closure of the positions radically changes the direction of the market. This process brings huge 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 focused attention of the entire world and each piece of news makes its own movements in currencies’ rates on the Forex market. Experienced Forex traders know the manajers of the biggest banks by their names because any phrase from their speech may cause big changes of a price. We cannot ignore the fundamental analysis of Forex market. Today any trading platform shows its traders a news strip of the most recent financial events. And on the websites of all
Singapore brokers you can find a financial calendar which shows the time of the main news releases. You can build a trading strategy concentrated on the news or simply close a trading position before the announciation 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.
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