Gecko Global Analytics

van Gecko 08:36 GMT December 7, 2009
Short term market dynamics may change from time to time but it's of no concern for the average retail traders.. and trying to decipher & master short term moves is like searching for the holy grail.. an exercise in futility.. time is better spent on discipline, money & trade management skills for longer term moves.. All traders must accept & live with short term Fx "PorkChoptitist" disease over their transient career.. fwiwW..


12/06/2009 00:51:32 bc shanghai
Everything evolves in time and the only permanent thing is change in this world..Forex market is no exception..Forex market today is different from that of 70's or 80's or 90's in its composition of players and mode of operations..In the 70's till early 90's,forex market was used to large trends and large daily fluctuations..The large players were mainly funds and cbs from Europe and USA..

Since 2000,that forex market scene has largely changed in terms of players and their mode of operations..In forex option market and spot market,massive participation of Asian players especially from China and Japan and Middle east have added new dynamics in forex market..Formation of sovereign funds supported by cbs from Asia and Europe have largely overtaken the field formerly ruled by a bunch of hedge funds..For some of them,it is no longer the question of how to move the market in a desired direction short-term but how to get out with money after moving the market in desired direction..And it requires different modus operandi to operate in such environment..The dilemma of a whale in a shallow water hunting anchovies and sardines or a dilemma of a bank robber in a traffic jam..Medium-term and long-term forex directions are different matters though..How the democratization of forex market all over the world to private investors has affected forex market movements is not that clear though..

How the market will evolve in coming years is unclear but the ultimate rule of the market operation,the law of supply and demand or accumulation and distribution process is highly unlikely to change unless forex market disappears..Nothing new under the Sun in that respect..The only thing new and evolving are different players and different ways they play the market and the way they affect short-term movements..


How has the market changed and how to adjust to the new normal?
12/02/2009 22:06:52 GVI Forex Jay
One thing I have learned over the years is that the market is not static and is always in a state of change. At different times, big players have dominated, only to go by the wayside and be replaced by other big players trying to dominate the market. Currently it is the central banks that are dominating with a build up in dollar reserves. For short-term traders, correlation trades and algos seem to be making life difficult.

The purpose of this thread is to get a discussion going on the current state of the market, how different players and systems are affecting it, what do we need to adjust to these changes, or anything else you feel is relevant. Please participate as I do not have all the answers.