Forex Basics

Why don’t banks seek to get on you?


You are a person suffering from paranoia

I like to bring up uncommon things, and usually try to prove my point, and do my best to support my opinions or statements with evidence and evidence (it is an evidence-based approach). So why do I do this? I think I am a revolutionary person in my heart; Going against the trend, as a rule, had its positive aspects for my trading style. Well – let’s start with God’s blessing.


Uncommon saying:


“You hate nothing to you, and the banks don’t care about your presence.”


Banks represent a large but huge part of the forex market, and the Bank for International Settlements (BIS) collects, classifies and issues data in all financial markets.


His data indicates that banks make up about 40% of the contribution to the Forex market.


This is a good size. It is not everything in the market, but it is large. As for the rest of the market, it is mostly large companies with huge capitals: such as Wal-Mart, the American retail company, which owns the largest chain of stores around the world, buys plastic shovels that were made in China, or a grocery store in “Peru” that buys Coca-Cola drinks from the “Coca-Cola Hellenic” company in Greece.


These daily activities require immediate transactions in the Forex market, which must be kept in mind. The topic is as follows: There is a very large, strong and very diverse group of people, institutions and companies that in their entirety constitute what we know as “the forex market” … Then we come individual traders.





The above chart shows that individual traders have close to an average trading volume of $ 200 billion, which is nothing compared to the average daily trading volume for the forex market overall of $ 4 trillion.


Individual traders are not a large part of the market, contrary to popular belief. When I say that we are the “few”, you cannot imagine how a brief saying is, and one of the best visualizations about the trading volume of individual investors was the report of the Liberate Foundation for Economic Research and Consulting shown in the chart. Below.





The closest estimate of individual trading volume is barely 6% of the total Forex market size in terms of turnover of capital. Yes, this percentage is correct, 6% combined, which leads us to my topic under discussion: We are actually, in all honesty, very small until an account is calculated for us. Why? How much money do you think will be needed to move the market? According to the estimates of the “Liberate” Foundation, the turnover of individual investors’ capital is up to 229 billion dollars, which does not seem like a simple sum or “change”, until you remember how many zeros are in the number 4 trillion dollars (4 thousand billion dollars).


If every individual trader in the market is speculating in one direction at the same time, the “big players” could, in theory, have the advantage of number and throw you out of the market … But that will cost them more than the total value they will gain from this activity. In a market that contains 4 trillion, 299 billion enter and exit the market very quickly. So do yourself a favor and try not to let things like these blind you, as they are damaging to your psyche and your trading performance.


You’re actually too young to be a concern but that’s a good thing.

There is a lot of money and a lot of different players in the market; Basically they all try to make money from each other (except for Wal-Mart and the plastic pickaxes it sells).


And since you are one of the 6%, this is a kind of advantage. As the saying goes, we are a fly on the wall. We see and hear everything that is said and no one feels us. Institutional traders have to trade because this is the nature of their work, regardless of what happens in the markets, they get paid for their investment activity in the market, and we are fortunate in that because we picked and chose when we put the playing chips on the table. So try to spend less time worrying about the “big players” and focus on trading success.


If the market becomes unfavorable to you, you cannot know if a large group of institutional speculations moved in the short term when the main support or resistance barrier was broken, or if Wal-Mart bought additional plastic shovels, or if the trend within the market changed. Simply, either randomly or due to some random economic data or some news report, so do a favor for yourself and your trading: and stop worrying about “big banks, because …


Creating enemies is harmful for you

Fear is strange, it is not useful in many matters, but everyone feels its effects, and as a trader we have a lot to worry about, such as: stop-loss points, target profit level, entry points, margin requirements, leverage, market fluctuations …

The list goes on

You also don’t need to add imaginary enemies to the list, all you do is create an elusive enemy without standards to define what it is, something that you cannot put your finger on and define it exactly, but it is always there. Avoiding fear is very important, and it is absolutely necessary for the psyche of the trader (and the balance of his trading account).

And you do not know who the person is or what is the money that moves in or out of the market from day to day, for this is the nature of the forex market, and it is like a large, gigantic machine made up of many parts that are easy to trace wherever you go. So, the next time you see the price fluctuate a little, just try to remember that the change and movement in the nature of the market, so stop being afraid of everything, especially your shadow, just make your trading without explanation or explanation.

One of the many reasons for this completely insane Price Action project is because we are, in fact, fundamentalists; We let the charts explain themselves, you trade the price action signals the market gives you, and leave other losing traders to worry about themselves and their imaginary enemies.

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