Yes, forex is a market where trillions are traded every day.
But on FF we see countless posts refering to books about the stock market.... these books tell us how to interpret the psychology of candlestick patterns, and how to apply TA successfully.
When do we stop and say: "Wait a minute! Forex is not a speculative market!" Speculators are only a small percentage of the entire trading population. When do we realize that standard TA for speculative markets (like the NYSE) is moot?
Darkstar said it best: Exxon is a US company, but operates overseas. It must convert all of its $ to Euros to pay its employees operating overseas. These transactions are why the forex is so large - not because of trillion dollar hedge funds speculating on FX.
And you have got to rationally think that these payroll conversions are entering and exiting the markets randomly all hours of the day, creating tons of white noise into the "psychological" trading of the speculators.
Just something to think about.
But on FF we see countless posts refering to books about the stock market.... these books tell us how to interpret the psychology of candlestick patterns, and how to apply TA successfully.
When do we stop and say: "Wait a minute! Forex is not a speculative market!" Speculators are only a small percentage of the entire trading population. When do we realize that standard TA for speculative markets (like the NYSE) is moot?
Darkstar said it best: Exxon is a US company, but operates overseas. It must convert all of its $ to Euros to pay its employees operating overseas. These transactions are why the forex is so large - not because of trillion dollar hedge funds speculating on FX.
And you have got to rationally think that these payroll conversions are entering and exiting the markets randomly all hours of the day, creating tons of white noise into the "psychological" trading of the speculators.
Just something to think about.