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Old 10-13-2006, 01:09 AM
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Ordinary speculators (we are) can't move the price even 1 pip, because you can't simply move trillions of dollar by a couple of thousands dollar. Likewise, a few gallons of water won't certainly rise the ocean level even a bit.

When I trade stocks, i always look at the psychology of both fund managers the primary movers and speculators the secondary movers. They hold from millions to billions of dollar worth of stocks, so when they sell, the price will go down sharply.

When I trade forex, it's all about psychology of central banks and governments. And, it's nothing to look at except the monetary policy they have in place. Every decision can be made purely by looking at economic calendar.

So i suggest when you trade in forex, don't think that speculators move the market. You cannot use fundamental systems designed for stocks, because we have totally different key players here.
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