Pictopip

In my previous post we talked on what group of people or participants have the most influence in the forex market and how we should avoid / befriend them. First we ought to understand the heirarchy of where your wallet will fall in.  In the above diagram, we can see that the major banks akina HSBC, Citigroup, Deutsche Bank, Barclays Bank et cetera are the prominent players and smaller or medium sized banks make up the interbank market. The participants of this market trade either directly with each other or electronically, how, fanya research bana . The banks then determine the FX rates through their operations and have the true overall picture of the demand and supply in the overall market, and have the current scenario of any current.  The next tier of participants are the non-bank providers such as retail market makers, brokers, ECNs, hedge funds, pension and mutual funds, corporations et cetera . Hedge funds and technology companies have taken significant chunk of share in...

Do you know what the most dangerous animal that preys on so many traders on the FX market? The raging BULL and his friend grizzly BEAR. If you are ever going to be reckless on the market hizi wanyama will severely not only hurt you but bleed you dry - literally on your trading account. The market is structured in a way that these "species" coexist and on performance describes how we trade.  Your account is at risk! The Bull What's a bull called in Swahili? Let me know in the comments. So a bull is the positive effect on the direction (rising) of a currency. This is when buyers have entered the market with optimistic expectation that will yield them profits since favorable factors are affecting the economy kama trade agreements, low unemployment et cetera yani good stuff. The Bear As a trend tends to have more sellers entering the market, a negative effect tends to affect the direction (falling) of the currency. A bearish market tends to create chances of profit as well...

The word forex is an interesting word and the first thing you visualize is "$". It is an exciting symbol depending from where you are coming from. The market is riddled with such a symbol that this is the only market which generates more than $5 trillion a day. (sijui kama the Kenyan Central Bank reserves can hold that - or any politician can eat that and go unnoticed.) What is Forex? Forex is short for Foreign Exchange or FX, a bougie term is currency trading. It's something they will never teach you in class - unless you´re a business major (na bado hauta shika kitu). It's the largest liquid decentralized global market in the world where people and not robots trade with each others' currencies. Why trade Forex? To be filthy rich and flex. Be self dependent and quit that annoying 8 to 5 job. Travel and party like there is no tomorrow? (manze hio ni the dream).  The why primarily - is to make money. Its the only means that this world's language can understand....