[TraderABC]

Originally Posted by tommyfx

HI,

Regardless of if the information is insider or not, i am demonstrating a point that it is buying pressure that makes prices rise and selling pressure which makes prices fall which is a concept some people in this discussion dont seem to grasp and they feel all prices are artificially presented by banks to suit their own purpose,

When the banks (and or brokers) know where all of our orders are, it makes sense to use that information for their own purposes. So in a sense selling/buying pressure works, just in reverse. Take euro rates for example.
The currency was artificially moved up and down at which points the banks made huge profits (since they know the approximate time when to start to move currency the other way).

that is total nonsense, even central banks and billion dollar financial institutions place their orders

Because they obviously know what to do.

and take their chance like the rest of us

No, no, no. Unlike us they KNOW where and what orders are placed. They may use their connections within the financial infrastructure the way we cannot.

and it is these orders creating supply and demand that move prices, it really is
school boy economics

School boy economics??? HA! Then why do economics professors make poor traders??? Trading proffesion is NOT connected with MacroEconomics to a large degree.... It is almost like comparing a Doctor and a Pharmacist, same field (Health) yet they are different.

There was a study done on GDP and the stock market, and guess what, it didn't effect the stocks.

for some reason people want to make life harder on themselfs, just trade what you see and you wont go far wrong.

I agree about simplicity being the key. I agree about being the master of the obvious. I agree that super duper math indicators may not work.... But there needs to be a specific plan to trade... Not like some guy Dr. Elder has mentioned who traded from his gut and lost 1/4 million in the stock market.

I admit occasionaly market makers run stops which is moving prices with artificial movement, however this is usually rip off scum brokers that move "their" prices, if you look at the interbank market (which i suggest all serious traders trade through) the prices havent moved at all and that is where the "real" market is. But when prices are moved artificially it is only to trigger stops and orders which gets us back to the supply and demand aspect of the market.

Tom

Question: How do you know that interbank quotes are not tightly controlled rates designed to satisfy macro-economic needs of countries, banks, etc?

THE FX is not a stock market. If some XYZ stock crashes, then so be it. If USD crashes than what will happen to the world? It will go to hell in a handbasket.... Your average Joe/Jane order never leave your broker!!! Very few people can use Million Dollar plus orders. Plus all of those millions will not amount to much against interbank machines!!!