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Peeking into Trading Strategies from Bank Traders

Bank traders, although constituting only about 5 percent of the total trader population, are considered the masters of the forex market. What's the secret behind bank traders' trading strategies? If you think your decisions in forex trading influence the market, you're gravely mistaken. Despite the large number of individual traders, they don't wield enough power to influence market movements. Instead, large banks have the capital to manipulate the market. They are the primary players in the forex market. Here are some trading strategies that can be learned from bank traders:

  1. 1. Avoiding Chart-Staring All Day

  2. Bank traders don't spend too much time monitoring price movements on charts. They don't engage in scalping (trading in low time frames for quick profits). Typically, they only execute a few trades per week and evaluate their positions only once a year. They make decisions based on fundamental and technical analyses that are in line with each other.

  3. 2. Entering Positions During Market Consolidation

  4. Bank traders often enter positions when the market is consolidating (flat or little price movement). They avoid high volatility and look for favorable entry points. Bank traders accumulate positions when the market is consolidating to buy at lower prices or sell at higher prices.

  5. 3. Minimizing the Use of Indicators

  6. Unlike regular traders who often use many indicators, bank traders focus more on long-term Support and Resistance levels. They make quick decisions based on simple technical analyses and fundamental changes.

  7. 4. Paying Attention to Psychological Levels
    Bank traders pay close attention to psychological levels, which are price levels that tend to attract attention and are rounded numbers like 100 in USD/JPY. They take into account the market's reaction to these psychological levels but only focus on the most important long-term levels.

Facing Bank Traders

It's important to remember that your goal is not to beat bank traders or the forex market, but to understand their techniques and apply them to your trading strategy. Bank traders are not your enemies because they're not interested in small retail trader capital. What retail traders need to be wary of are their brokers, as brokers often manipulate prices and order executions. Choose a safe and professional broker to increase your chances of success in your trading endeavors.


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