Did you know how we should buy or sell the currency markets

The biggest question that surrounds trading Currency trading or any other financial market is simply this, When do I enter the market? No matter which level you are, you will always ask yourself this situation. When do you “pull the trigger”?

It is not easy to answer such forex supersonic queries as they come with experience and awareness.

We need to understand that we cannot control the forex market. It is the opinion of majority that decides the direction of the market. All traders must follow what the market is doing. If it desires to go up, then up shall be our trade. If it goes down, then we will follow it down. So how do we define the trend and when do we exactly follow the trend.

Do you know which trader has the biggest buying and selling power? They are the institutional traders. The results of their positions can be seen each week at the (10kto1mm) site under the Commitment of Traders Report. Commercial traders DO NOT try to make money from their currency transactions. They want to make slow and good money. They don’t care about the minor changes in price.

These group of traders once defined their market direction will slowly and gradually invest their money into the market. Most likely 1-5% every week or month till the whole funds in. Once they decide to move, no money can turn them back. Their goal is stable prices in order to run their companies, countries, and institutions.

Now come to the next group of traders below them. They are the individual speculative traders. They often form small group of interested clients and trade for them. So do you think they have sufficient power to move the market in any way? Well I dont know.

Nevertheless, sometimes when the news are favourable or extremely bad. These group of 2nd tier traders can also move together at the same time. When their entire *oracle trader* capital move at the same time, you can be sure that the currency markets will experience a short term earthquake. Do you think these two group of currency traders can help you understand more when to make trades?

Let make up an example. There is a huge institution ready to invest some of their massive resources into the market using US dollars currency. Retail traders, you and I, don’t know about this obviously. Other traders however in the network of Non-commercial traders have their contacts and the word gets out in particular when the demand for Dollars increases.

Rumours begin to spread like wild fire. More banks know about this and their big consumers also get to know.