Forex Market Trading – Understanding the Market

One of the biggest reasons why there are so many losing traders in the Forex market is because they don’t understand how and why currency prices move. In this article, let’s examine 2 main points to help us better conceptualize market movements.

95% Speculators

Did you know that roughly 95% of all traders in the Forex market are speculators? Many new traders make the mistake of assuming that the majority of players in the market are multinational companies that exchange currencies to run their businesses. In reality, this is far from the truth.

And this is one of the reasons why there are so many losing Forex traders: they don’t realize that 95% of the market is geared to take their money! The Forex market is essentially a dog-eat-dog arena… and those who aren’t prepared for this reality are soon taught a very expensive lesson.

But now that you know the majority of traders are planning to make money at your expense, you can adjust your trading strategy to counter these attempts and to minimize your unnecessary trading losses.