One of the primary queries raised by those involved in Forex trading or financial trading of any other sort is that of how to determine the optimal time for jumping into the market. Anyone who has played with a demo trading account or who has become more experienced with a live account understands that this is a crucial consideration. When is the best time to jump in?

The influence on supply and demand by the sheer number of traders in the Forex market is a factor many Forex traders never consider. You buy currency, whether it’s Pounds or Dollars, when the demand for that currency is on the rise. When is that exactly and how do you measure it?

In Forex the largest group of traders by far, are Commercial traders. Their position results can be viewed each week at the CFTC site by looking under the Commitment of Traders Report. Currency transactions are not the basis for a Commercial traders profits. They are looking for Stability instead of Volatility.

Speculators, or Non-Commercial traders make up the second group of traders. They are trying to make money in the Forex market for themselves and their clients. It is uncertain as to this segment’s true ability to shape conditions and market trends. There are hazards involved with Forex investments.

Let make up an example. A large business wants to invest with U.S. Dollars. The purchase process through the bank begins. At first, retail traders, including you and I have no knowledge of the impending transaction. Within the network of Non-Commercial traders, there are rumors a-flyin’ and as traders begin to talk, the demand for the Dollar increases. The Dollar demand will increase accordingly as the Non-commercial traders join in on the growing trend. Easy does it.

And then make sure it has at least 1 or 2 other confluent factors. To keep them calm and level headed. And second guess their trading decisions. Suffolk County Ny Yellow Pages

Tagged with:

Filed under: Currency Trading

Like this post? Subscribe to my RSS feed and get loads more!