It is a less known fact that about 80% of today’s currency turnover is the result of the world’s largest banks buying and selling currencies. Starting from Australia through to Singapore, Malaysia and onto London and New York it is a banks market.
However 95% of currency traders the world over still trade currencies based on traditional indicators. How’s that been working for you?
The frustration leads to forever looking for the holy grail of trading, switching and changing systems usually resulting in continued losses. Having the experience of wanting to give up and simply feeling paralyzed by technical analysis and the confusion that is may cause.
Well that was me for the best part of a decade. However I can tell if you learn how to really read price you can follow the banks and make consistent profit.
Banks are forever having to exchange currencies for international businesses, people travelling, repatriation, governments and all those partaking in any form of business overseas. Recently while travelling to Malaysia I was in shock at the bank buy rate in New Zealand, the rate I was going to get for exchanging my dollars into Malaysian ringgit. The difference between the bank buy rate and bank sell rate was about 6% so you would technically lose if you bought Malaysian ringgit and then sold it back the same day.
If you knew a way to measure and see where the bank orders are for the buying and selling of currencies could you then profit from the daily foreign exchange market? You could right you would simply buy when the banks are buying and sell when the banks are selling.
Currency exchange trading and currency rates is hard enough without knowing how to really read price. Start with trading naked. Remove all the indicators off your charts. That alone should improve your trading over time.