The dark side of forex markets

Feb 22, 2021 at 09:11
3,824 Zobrazení
70 Replies
Členom od Feb 22, 2021   3 príspevkov
Feb 22, 2021 at 09:11
Forex trading has garnered a lot of attention across the globe in the last decade. Thanks to the internet & technological advancements that has made it possible for retail traders to participate in one of the world’s largest businesses.

When you are new to forex trading, you are easily lost in the vast ocean of trading related content, strategies, indicators & trading gurus that claim to have the holy grail system to make it big in the forex trading world. But within no time you start realizing its not all that. You get this feeling that there must be more to it rather than relying on certain indicators & strategies. A few years back that was exactly what my mind was telling me. Failing strategies & losing my hard earned savings wasn’t an easy phase. But I had made up mind. I wasn't ready to let go all of that just like that. I wanted to know the why’s and how’s. That is how my trading journey began, but this time on a serious note.

To begin with I decided to join a forex brokerage firm to understand what really happens on the other side of the forex markets. I was lucky enough to get a job in one of the biggest forex brokerages back then. Although my role was that of a sales agent, it didn’t take me long to work in a department that dealt more closely with client trades.

I still remember the day when I first heard the word ‘trading syndicate’. That’s the day I realized the existence of a trading syndicate or group of big forex market players that actually manipulated (although not the right word) the markets to ensure that the retail traders lost money. And they are not doing anything wrong. Its a business. For someone to make money, someone has to lose in this markets. The big market players however, like the big financial institutions, market makers & brokers usually had infinite pockets to actually make the markets move the way they wished. So how does this trading syndicate function.

The trading syndicate terms the rest of the traders of the world as ‘herd’. The reason because the herd always acts in group, literally like a herd. The herd (retail traders) are not well versed with the forex market mechanisms & the trading syndicate is aware of that. They are also aware of the fact that the herd usually believes totally on the support, resistance, Fibonacci & other indications given out by indicators. Now the trading syndicate already know what the herd is looking for, they are already aware of what they need to do to fool these retail traders to enter into wrong positions.

A very simple example, if lets the say the trading syndicate wants to buy a certain instrument, they would never buy it right away at the current market price. They follow a certain pattern and rules. One of them being ‘buy low — sell high’. So to buy something they will first make sure that the instrument is trading at the lowest possible price to buy it at the lowest. They do this by pushing the prices down by selling the instrument (although they want to buy). This selling bring out the rest of the sellers to join the selling. Now if the news for that instrument is bad, this calls for more selling, automatically pushing the prices more down. Its into this down move that the trading syndicate starts buying. But guess what when the retail normal traders or herd see the markets fall, they do exactly opposite of what the big traders do. The herd sells, the trading syndicate buys. This process goes on for a while until there are no more sellers in the market. This is when the trading syndicate starts buying, and real buying. Prices start to shoot up, and the herd that was selling, is now in a loss. This is just one part of their campaign.
Trading is a business, not a casino. As a trader, you are a businessman, not a gambler.
Členom od Oct 23, 2018   29 príspevkov
Feb 22, 2021 at 18:36
Very true sir, all we can do is try to go along with the ride they create. Risk management is key for little retail traders
Členom od Jul 23, 2020   869 príspevkov
Feb 22, 2021 at 23:05
bax699 posted:
Very true sir, all we can do is try to go along with the ride they create. Risk management is key for little retail traders

I think risk management is key to success for all kind of traders in the market.
Členom od Dec 24, 2020   9 príspevkov
Mar 03, 2021 at 08:09
Truly said! Forex trading has given the world a way of making money. You can trade the way you want without having to worry about the rest of the world.
Členom od Nov 03, 2020   70 príspevkov
Mar 03, 2021 at 12:23
bax699 posted:
Very true sir, all we can do is try to go along with the ride they create. Risk management is key for little retail traders
Along with money management which I believe are both very good for economically trading
Členom od Jul 20, 2020   298 príspevkov
Mar 09, 2021 at 14:58
viiveknaiir posted:
Forex trading has garnered a lot of attention across the globe in the last decade. Thanks to the internet & technological advancements that has made it possible for retail traders to participate in one of the world’s largest businesses.

When you are new to forex trading, you are easily lost in the vast ocean of trading related content, strategies, indicators & trading gurus that claim to have the holy grail system to make it big in the forex trading world. But within no time you start realizing its not all that. You get this feeling that there must be more to it rather than relying on certain indicators & strategies. A few years back that was exactly what my mind was telling me. Failing strategies & losing my hard earned savings wasn’t an easy phase. But I had made up mind. I wasn't ready to let go all of that just like that. I wanted to know the why’s and how’s. That is how my trading journey began, but this time on a serious note.

To begin with I decided to join a forex brokerage firm to understand what really happens on the other side of the forex markets. I was lucky enough to get a job in one of the biggest forex brokerages back then. Although my role was that of a sales agent, it didn’t take me long to work in a department that dealt more closely with client trades.

I still remember the day when I first heard the word ‘trading syndicate’. That’s the day I realized the existence of a trading syndicate or group of big forex market players that actually manipulated (although not the right word) the markets to ensure that the retail traders lost money. And they are not doing anything wrong. Its a business. For someone to make money, someone has to lose in this markets. The big market players however, like the big financial institutions, market makers & brokers usually had infinite pockets to actually make the markets move the way they wished. So how does this trading syndicate function.

The trading syndicate terms the rest of the traders of the world as ‘herd’. The reason because the herd always acts in group, literally like a herd. The herd (retail traders) are not well versed with the forex market mechanisms & the trading syndicate is aware of that. They are also aware of the fact that the herd usually believes totally on the support, resistance, Fibonacci & other indications given out by indicators. Now the trading syndicate already know what the herd is looking for, they are already aware of what they need to do to fool these retail traders to enter into wrong positions.

A very simple example, if lets the say the trading syndicate wants to buy a certain instrument, they would never buy it right away at the current market price. They follow a certain pattern and rules. One of them being ‘buy low — sell high’. So to buy something they will first make sure that the instrument is trading at the lowest possible price to buy it at the lowest. They do this by pushing the prices down by selling the instrument (although they want to buy). This selling bring out the rest of the sellers to join the selling. Now if the news for that instrument is bad, this calls for more selling, automatically pushing the prices more down. Its into this down move that the trading syndicate starts buying. But guess what when the retail normal traders or herd see the markets fall, they do exactly opposite of what the big traders do. The herd sells, the trading syndicate buys. This process goes on for a while until there are no more sellers in the market. This is when the trading syndicate starts buying, and real buying. Prices start to shoot up, and the herd that was selling, is now in a loss. This is just one part of their campaign.
Yes, you are right. To trade, you must first learn to manage risk.
Členom od Mar 16, 2021   477 príspevkov
May 06, 2021 at 00:18
If I can manage the risk, it is possible to gain some profit in the trade. Successful traders always manage risk and trade.
Členom od Dec 11, 2020   4 príspevkov
May 14, 2021 at 11:17
That is right and you have made some compelling points here.
Členom od Mar 16, 2021   477 príspevkov
May 17, 2021 at 01:05
Forex trading is very complicated. There is a lot of learning here. Mindset has to be managed properly by making many policies.
Členom od May 13, 2020   128 príspevkov
May 18, 2021 at 12:22
But the most important thing is not to go deep into this area in order to be focused specifically on trade.
Členom od Mar 16, 2021   477 príspevkov
May 21, 2021 at 02:27
Stonesong posted:
But the most important thing is not to go deep into this area in order to be focused specifically on trade.
Yes, you are right.
Členom od Apr 17, 2021   20 príspevkov
May 21, 2021 at 08:10
Indeed, despite the fact that the forex market is a fairly profitable field of activity, there are also negative aspects here that you need to know.
Členom od Feb 16, 2021   29 príspevkov
Jun 16, 2021 at 08:38
Each business has its pros and cons, just if you correctly understand and learn everything, then everything will work out.
Členom od Jul 23, 2020   759 príspevkov
Jul 07, 2021 at 10:05
Loss is unavoidable in trading even if you are an experienced trader.
Členom od Jun 17, 2021   11 príspevkov
Jul 23, 2021 at 10:28
As per my opinion, the super high volatility is one of the dark sides of the forex market, hence everyone should trade with proper care, planning, and strategies.
Členom od Jul 19, 2020   788 príspevkov
Jul 24, 2021 at 11:43
Forex trading is very difficult but money management and risk management help to make it easier. To be successful, these things need to be maintained.
Členom od Feb 20, 2021   7 príspevkov
Nov 16, 2021 at 08:57
As for me, the darkest side of forex trading is that the very little amount of traders become successful here. Of course, some traders believe that it's very easy to become successful, you need just practicing and dedicate lots of time to this process, however they don't understand that it's not enough to be successful on a longer period. You can be successful for a month but then you can lose everything, nobody knows what will be going with you.
The darkest side is incertainty and it's very difficult to foresee what will be going with you within a year in trading.
Členom od Jun 26, 2020   327 príspevkov
Nov 16, 2021 at 10:45
there is no one who can predict the real faction of this market with certainly even after having good knowledge and experience , most of the time no trend market actually follows, this is the dark side according to me.
Členom od Oct 29, 2021   70 príspevkov
Nov 18, 2021 at 05:10
Every business has its dark side. Forex is an international market, which can be traded 24 hours a day, five days a week. The main problem is the lack of unbiased information about forex markets. If you have a sound knowledge of the forex market, you have better prospects of earning money, and if you don't have that knowledge, then your income will depend on chance.
Členom od Dec 18, 2019   20 príspevkov
Jan 14, 2022 at 14:24
I suppose that all the activities have their own pros and cons. It's not only about trading activity actually and the matter here is to perceive all the pros and cons wisely. You shouldn't be angry on forex trading just because you lost all the money, it's unwise. You have to understand that forex trading isn't guilty with your losses, only you are guilty with them. You hae to analyze a lot why it hapenned so and then you should make conclusions. In my opinion, forex trading has its own drawbacks, as well as any other activity, but you should explore all the shortcomings before you enter the market and deposit money.
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