A lot of specialists of the Forex market are sure that making decisions on the currency market is based only under the mood of the market.

According to the theory of reflexivity of George Soros, the less the scale of the predicted market is, the less it is subject to the theory of the classical analysis. Here again on the foreground there is a stock market game psychology, knowledge of structure of stock jobbing, understanding of psychology of crowd and etc. And when it is said that after certain indignation in the market again formed movement is adjoined by huge weight of speculators (small private investors), and they, that is suspected, push the market further away there are first doubts. Let’s remember, who is the basic participant of the Forex markets? First of all, these are large commercial banks with milliard turns. Secondly, these are Central State Banks, i.e. the structures possessing huge means and possibilities. Thirdly, these are investment funds which also operate hundreds billions of US dollars. There are also large firms and corporations which conduct active international trade and constantly need foreign currency (often work in the market through the authorized banks).

And the last, the most numerous group, these are private investors, however their cumulative means do not allow to influence a course of the auctions strongly. Therefore even if all private traders simultaneously will start to work with one active, on the same time interval, their actions will not be so considerable, as any, even very weak currency intervention, for example, Bank of Japan.

About the structure of the work.

You have to realize that any commercial bank or investment fund has a staff of professional traders, that work with the assets of an organization, and on different investment horizons. The structure and strategy of the work of big participants of the market is rather plural, but let’s try to put it on primary structuring. One large part of participants is concentrated on rather small strategic goals, i.e. to say in simple words, they just “pipsing” earning several pips on the difference, but attracting rather large assets and having an opportunity to input the market for several times (even tens times) a day. As a result, they get a very good profit.

The other large part keeps positions for some hours or days. And there are strategic investors, that save positions for weeks and months. That’s why if a serious and big player decides to play with a large volume of assets with short money, then we can suppose that an employee of the same bank (fund) that keeps longer positions, will be informed about the planning operation, so this employee won’t be surprised with an “unexpected” fluctuations on the market, that have been initiated by his/her partners.

This trader can close his/her position, if it doesn’t move in the same direction with the aimed movement , in order to renew tender from more profitable levels. But the most important is that there are other commercial banks and investment funds (that are very large too), that want to open positions to the opposite side at this moment. To say in other words, they try to break the stake of other bank. That’s why there always will be fighting, and those who want to join one or another side, are always many too, whatever investment horizons they work.

Psychology is important, but not the determinant.

I think the most effective factor that speeds up the market sharply, are stop zones, orders for buying and selling. When they totally work, fluctuations on the market begin. But this is more a technical factor, and after it psychological factors “come”, they are connected with the behavior of the participants on the market. But the main conclusion is that constant fight of technical, fundamental and psychological factors, as a result ends with domination of the last factors.

As in every other niche of life foreign exchange market needs some education.

Surely, one can start forex investment and be quite successful in it. But sooner or later the losses will come. This is when you might think “Why didn’t I start with a nice forex trading education?”

This does not imply that after reading even the greatest materials you will start closing trading positions with huge income, but this knowledge will save you from lots of traps. And even if you make up your mind to get the assistance of a forex managed account service, still you will be able to make a much wiser decision.

And a final piece of advice – today the Internet technologies give you a truly unique chance to choose exactly what you require at the best terms which are available on the market. Strange, but most of the people don’t use this chance. In real practice it means that you must use all the tools of today to get the info that you need.

Search Google or other search engines. Visit social networks and have a look on the accounts that are relevant to your topic. Go to the niche forums and participate in the discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a wise and nicely balanced decision.

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