Trading is not for everyone ,by that I mean its not for retail traders.
Its not a secret that over 90% of traders will lose money trying to make money in the markets but what most traders don’t realize is that although they know that banks are out there and manipulate prices they never know how that affects the market and all they focus on are trying to find repeating patterns instead of trying to make you on the info the chart gives and making an interpretation of what the major players are doing. Make sure to read this to the end
If you have ever placed a live trade then there are most likely that you have interacted with
1.liquidity providers– which make up the largest amount of money in the market now in the industry these are known as market makers and basically take the other side of any trade in any of the markets they trade.The top forex traders google search will reveal that all the biggest players in the market with the likes on Citigroup ,Barclays ,Deustche Bank leading the way in trading volume .Because of the sheer volume these players have they can move markets short term plus have access to the information we provide them with of where our buying /selling zones and stop losses are.
2.Broker- Depending on who your broker ,the broker might take the other side of the trade now this might not be to directly “Go against ” the retail trader but to hedge some positions they have in their own trading accounts but in the end the broker and trader will be on the opposite sides of the trade and someone has to lose
3.Open Market- Now this may not be the politically correct term but to avoid confusion we will keep it .Now typically brokers who have a certain way of processing orders will match up retail and professional orders without the liquidity provider being involved but this accounts to such a small amount of orders that its not worth the effort trying to explain
Now in all 3 parties we interact with in the market the objective is the same ,TO MAKE MONEY with that said purely trying to look at a certain patterns will not work long term because all 3 of these parties will change their approaches over time and therefore each strategy will lose its effectiveness over time therefore so its important to understand the reasoning behind the buying and selling going on in the market our next post I will show explain how each party is different what the actual numbers are so you can make your own decisions