How do Big Bank make BIG BANG?

Bankers system is basically a system of trading which is only good for fundamental analysis. Majority of banks and Investments Company don’t sit behind the computer all day long. They trade using fundamentals and when they do, they move millions from the market. They don’t trade everyday like small time traders.

They had known that currency values moves because the economy of the country issuing the currency is altered. Governments devote large bureaucracies to controlling the money supply, interest rated, imports and exports, etc all of the many factors that make one currency worth more than the other.

National economic policy, together with the competing national policies of all the other currencies, governs the big picture. Any factor affecting one dominant currency, and these echoes can take a while to damp out. You have to understand the fundamental of global currency to trade this system successfully because it will help you to correctly identify the major trend of currency pair you are trading and so anticipate changes in the trend when the underlying fundamentals changes.

The reason we are so much at home with this system is because the news will always override technical analysis. The MACD, Fibonacci and the rest of the indicators will give way when news occurred. That is why sometimes when you are so sure of where market is going by your indicators, it turn back to pick your stop loss is because the market is working by the forces of the news.

------------------------------------------------------------------------------------------------- NEWS trading is by far the most powerful and most difficult way to trade forex. Sometimes even your own broker go against you for it. That is why many gave up on news trading as no one can get fill for it.