technics used by market makers ?

Discussion in 'Forex Trading' started by chaos_trader, Jul 2, 2006.

  1. any book or information about trading technics used by market makers ?

    because I want to trade with an forex ecn broker (direct interbank trading)

    or any book for use of just (ask bid Qty) no charts or incators

  2. Thanks for the nice link!



    The Foreign Exchange Market implements complex financial and mathematical techniques to set prices. In 18 months of trading I have been unsuccessful in ascertaining any direct knowledge of the algorithms behind price variation (and I have asked), which in my view is fundamental to understanding the trader’s investment selection and risk.

    I have assessed the odds against an individual trader profiting overall from investing in the Foreign Exchange Market as being approx. 85%, which agrees with statements made by market commentators who have stated 80% and 85% as being the percentage of closed FX accounts which lose money overall.

    In closing I urge you, before trading FX at a significant level, to understand your ‘real’ risk of trading. The idea that a random trade will produce near equal odds is definitely not the case in the FX market as your trade affects the market, and without question becomes a target for sophisticated price-manipulation techniques used by experienced market participants at several levels as explained above.

    Do not be naïve, if you trade on this market be prepared to lose, unless you can outclass the banks, Market Makers and institutional investors exercising nearly 200 years of professional experience to take your money through deception and manipulation. It is as simple as that. There are times where you can win against the odds, but you should strive to understand what you are up against or you will probably be wasting your time and money.