We often wonder, why so many traders are struggling to establish consistent income from Forex trading. The answers are here to help them understand what they need to know. We have been looking closely inside investment banks for 20 years and realized how chief traders extract cash out of the market. It all comes down to an understanding of how traders and bankers operate and make their trading decisions.
Bank traders just make up only 5% of the total number of forex traders and on the other hand, speculators accounting represent the other 95%. But the thing is those 5% of bank traders hold 92% of the entire forex volumes. So if you don’t have the foggiest idea of how they exchange, you’re basically speculating.
Let us disclose the first myth about forex traders. Forex traders don’t just sit on their chairs all day and make proprietary trading decisions. They do more than that. More often than not they are essentially executing for the bank’s clients. This is normally referred to as “Clearing the Flow”. They can deal thousands of trades every day but none of these goes to their proprietary books.
How do banks Trade Forex?
Most of them usually trade 2-3 times a week, for their own trading accounts. These additional trades will decide whether they deserve a bonus or not at the end of the year.
As you can see bank traders don’t just sit there and deal random trades just to raise their budgets. They all have extremely practical thinking and only make trading decisions when everything is in order. They just don’t make decisions randomly. They have traditional thinking and a practical approach for trading.
This is extremely simple as far as technical analysis goes. We often get shocked when we see our clients’ charts for the first time. These all are often loaded with all kind of indicators which often contradict each other, making trading decisions very confusing. Trading with these indicators and these kinds of approaches can rip through your trading capital.
Bank traders’ charts don’t look this. They look completely different. What they want to know is where the key to critical levels is located. One thing you should remember that these indicators were created to predict the market situation.
The bank traders are heavily involved in the market. You don’t need the indicators if you already know how they usually trade. They usually make fast pace decisions based on technical and fundamental changes. Understanding how they make decisions based on technical analysis should be your main priority to become a successful trader. As a result, you will be trading with the market not against it.
All that comes down to this is simple support and resistance. There are no second thoughts and nothing to change their minds. We are not going to discuss how they enter or exit the market, but let’s make this clear, it is not where you think. Tenderlines are there to indicate the key support and resistance. Entering the market is quite another discussion.
How To Make Money In Forex?
Their key aspect for making trading decisions are acquired from the economic fundamentals. The main background of the market consists of three main areas and sometimes it becomes hard to determine the direction of the currency.
You can get a little disappointed when political issues manipulate the central bank’s announcements to go against the direction of the currency. But, when there are no political pressures and the central bank’s policy is formulated according to economic data, only then we can get the real direction of the currency and other trends arise at the same time as well. Most of the bank traders patiently wait for this time.
The main aspects of the market are full of complexity and it takes years to master them. This is one of the key areas that we mostly focus on during our two-day workshop and we always make sure that traders have a thorough knowledge of each area. If you manage to understand this, you will soon have long-term success because this is where the currency’s direction comes from.
A lot of money can be made from trading the economic data releases. The key to trading the releases is divided into two parts. Firstly, you should have a good knowledge of the fundamentals and how different releases manipulate the market.
Secondly, you have to know how you can trade precisely without any hesitation. When you start controlling these aspects of trading and start trading precisely, you will be all set to make huge capital advances. Because these economic releases directly manipulate the direction of the currencies.
Moreover, the central bank also makes its policies according to these economic releases. You will be able to know what’s going on with the central bank policies and build your capital at the same time if you start following these economic releases.
In order to become truly successful, you will need an extremely effective and comprehensive money management system that not only protects you in times of uncertainty but also pushes you to experience capital expansions. This is your whole business plan, you should get on to it right away.
Our demanding money management system completely incorporates your risks about rewards, capital controls as well as our trading plan including entry and exit. Having a management system like this reduces your stress levels and helps you to focus on other important things as well. There is no need to spend hours and hours monitoring the market.
Most bank traders spend most of their time chatting with other traders and doing their personal work. They rarely spend their time sitting in front of their computer screens more than a couple of hours. You should also follow their steps. Once you truly understand how the market works and own a comprehensive money management system then you will become successful in no time.
Now it’s time to understand how to implement the key strategies and where to apply them accurately. Once you figure out how bank traders trade, you will witness capital growth that you have never experienced in your life. If you start competing with other traders, you are less likely to become a successful trader.
But if you start joining them, you will be one step closer to success.
There are no secret paths that can make you successful. Becoming a successful trader starts with understanding the way bankers trade and analyze the market. Once you start taking advantage of these aspects, you are on your way to becoming a successful trader.