NEW YORK, July 13 /PRNewswire/ -- New individual traders often feel lost and clueless after they spend a few days trading in the foreign exchange market. Specifically, if you are new to the world of Forex, you often feel under-privileged compared with senior traders and financial institutions, especially the banks who seem to have access to market knowledge that individual traders do not. However, what makes the senior traders and banks so successful is no secret; it's just a matter of experience and resources. The main factors that distinguish them from the rest of the speculating crowd are their superior trading strategies, expertise in fundamental and technical analysis, swift access to financial data releases and command over Forex signals.
Big Players in the Forex Market
Large international banks and foreign exchange banks are the most active traders on the foreign exchange market, accounting for almost 80 percent of currency trading volume. These big players completely dominate the Forex market in terms of trading. The banks participate in currency trading using their huge pool of clients and their own accounts. 2010 Euromoney FX survey revealed that top ten most active traders including Deutsche Bank, UBS AG, Barclays Capital, Citi Bank etc alone account for 77 percent of Forex trading volume. Needless to say, they dictate the bid and ask prices in the Forex market.
The Role of Banks in the Forex Market
This undisputed dominance of banks in the Forex market often leads individual traders to believe that institutional banks have access to secret information about the Forex market. However, while the banks have power, they do not have access to insider information in the Forex market. They do not enjoy the competitive advantage of insider trading over common traders the way professional traders and analysts in the equity market do.
With the passage of time, the advancement in Information Technology has made the Forex market much more transparent and accessible. Consequently, the transparency and accessibility turned it into a very democratic market.
Today virtually almost every trader has access to the same prices with narrow spreads that are quoted in the interbank market. Beside banks, a new category of market makers, for instance hedge funds, retailers and trading advisors has also emerged on Forex horizon over the past decade. Retail Forex has been growing at a remarkable rate over the past 10 years. Experts believe that this sector accounts for about 20 percent of the Forex market now.
The Competitive Advantages of the Big Banks over Individual Traders
Even though the Forex market is a democratic market where virtually all traders have instant access to the same market-moving-info as everyone else, the first competitive advantage the large banks have is access to high priority news announcements before individual traders. While any trader can watch business channels such as CNBC or Bloomberg, or check Forex news websites like DailyFX.com and Fxstreet.com for news updates, the fact remains that these sources often report news that is too late to trade profitably. Banks, on the other hand, have access to news sources that provide instant news.
These instant news sources include expensive electronic financial data providers such as Bloomberg terminal, Morningstar Direct, FactSet Research Systems, Capital IQ, Reuters, and Jackson Terminal etc. Since these news sources report information before it is released to the public, bankers have an obvious advantage that allows them to predict the market movement and trade currencies before the market actually moves.
Another advantage that banks have over individual Forex investors is access to a network of trustworthy advisors. The big banks not only have the expertise of hundreds of financial advisors, economists and senior Forex analysts, they can discuss the news that is being reported with Forex experts and economists from other banks. They collectively form a consensus about the news and move in a profitable direction with the currencies. Forming quality teams of quality Forex experts allows banks to maximize their profits.
Last but not the least, the banks possess the largest share of trading volume in the Forex market and they have access to the best Forex spreads.
How can you Trade like a Banker?
While you may feel under-privileged and disadvantaged in comparison to banks, there are steps you can take to trade like a banker.
To begin with, you need access to instant news sources such as Bloomberg terminal. However, these instant news sources do not come cheap, often costing no less than $1,500 a month. Also, even if you could afford an instant news source, interpreting raw data is difficult for an individual trader. You can only utilize the news to predict the market movement when you completely understand the data. For an individual trader who may be inexperienced, interpreting this information can be problematic.
You can overcome this issue by emulating another superior behavior of banks: working with a team. Working as an individual yields minimal profits, but working as a team can help you interpret data and make profitable trades.
However, forming a quality team for an individual trader can be very difficult. While most of the traders might be able to read the opinions of experts on the Forex market, they will never be able to accomplish what they could with a 24-hour team of expert economists, researchers, and traders.
Trade like a Banker by Joining LTG GoldRock
Realistically, even if you emulate the banks, you will never achieve your full potential as a Forex trader on your own. You need to seek help of a professional company, with a team of expert financial advisors and traders possessing vast experience of Forex trading and having financial data systems which are available to banks. For instance LTG GoldRock, which provides its members with a 24-hour live trading room, providing its members with access to instant news and a team of experts that they can interact with in real time.
Additionally, LTG GoldRock enables its clients to access the most powerful and comprehensive training and education system and opens up the lucrative world of currency trading to them LIVE. The company's professional team of trainers and traders teach the clients the systems, techniques and strategies used by some of the largest banks, institutions and successful investors. Since Forex trading is unpredictable, LTG GoldRock is an invaluable resource, providing the tools and guidance to help you understand market sentiments and trends, investors' psychology, and money and risk management strategies.
Banker-like-Privileges for LTG GoldRock Members
By joining LTG GoldRock, a new individual trader can actually master the "art" of trading, just like the bankers do. The company's goal is to provide "an average investor the same profit opportunity that large institutional investors have had and enjoyed for years." The following list is just some of the banker-like-privileges you can enjoy by being a member of LTG GoldRock.
1. Get the training and education of a banker
LTG GoldRock trains and educates traders in the techniques and skills bankers use by offering them a Professional Trading System. LTG GoldRock's trading system mainly focuses on price action: the leading indicator for Forex market movement and teaches the customers techniques foreign to most novice traders.
2. Have instant access to financial data and news
LTG GoldRock members are offered instant access to financial data and news. The company also offers members a live professionally run trading room and Trade Text Alert service, allowing you to receive daily text alerts of all LTG GoldRock official signals on your mobile phone. If you want to trade via your mobile phone, you can install the trading platform on your cell phone too.
3. Work with a team of professional trading experts
LTG GoldRock gives you opportunity to interact daily in the live training/trading room with the company's moderators, economists and professional traders. You can ask questions and place trades with LTG GoldRock's community of members. They even guide you into each trade with their own live account and suggest the perfect entry and exit points for each trade.
4. Enjoy the most competitive brokerage rates
LTG GoldRock can provide you with the most competitive brokerage rates. The company has well-built working relationship with the largest brokerage firms in the world, with over five decades of experience. The company's partner brokerage firms execute over a million trades every day and manage more than $4 billion of their clients. With their professional relationships with such reputable brokerage firms, LTG GoldRock offers the most competitive rates to its members along with the peace of mind of being associated with highly reputable brokerage firms.
By way of LTG GoldRock's guidance and resources, you will learn how to compete with the banks, learn how to think like a banker, and how to establish yourself in the Forex trading marketplace.
For more information visit LTGGoldRock.com
LTG GoldRock
SOURCE LTG GoldRock
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