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 a capital. Banks have the biggest influence on the market as they operate with the largest 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 solid capital cannot move the market to the certain course. Even the biggest players in Forex are not able to take a full control of the price movements. A fierce fighting breaks out on the Asian markets for such currencies as USD/JPY, EUR/JPY. On the one hand many Forex traders use this phenomenon in order to increase their investments, but on the other hand it is a very risky game and strategy. The fact is that technical analysis of Forex market cannot predict news and financial events which for a short time can change the price for 100 pips and lead to the opposite trend. Moreover, technical analysis cannot predict interference of big players in Forex trading.

At certain times 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 starts in USA it is the most active and unpredictable time in the market in terms of technical analysis. When staying in the market alone, US banks can urge big price movements of 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 dramatically changes the direction of the price. 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 increasing of your own capital. But at the same time every trader must be very careful when trading during these hours as it is very risky and may course high losses.

The international financial markets attract a focused attention of the entire world and each piece of news brings its own corrections 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 fluctuations of a price. We cannot ignore the fundamental analysis of Forex market. Today any trading platform provides the traders with a news strip of the most recent financial news. And on the website of every Singapore broker you can find a financial calendar which indicates the time of the main news releases. You can build a trading strategy based on the news or simply close a trading position before the release of the most important of them. In any case, every online trader must take into his consideration such factors as time of trading, news and noise of the market.

 

Daniel Shaw has many years of experience in online Forex trading. Visit his site Forex Singapore to learn more about Trading platforms Singapore.

 

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