Beat the Forex Conspiracy

Central banks manipulate currencies in pursuit of their nations’ monetary policies. High ranking officials from the wealthy nations consult privately regarding acceptable rates of exchange. No matter the reason for these actions they can be viewed as a conspiracy to manipulate an otherwise free market. For anyone who seeks to profit from changes in foreign currency exchange rates the issue is how to beat the Forex conspiracy. There are conspiracies to manipulate the currency markets to drive currency values down and to drive them up. There are times when a savvy Forex trader can anticipate changes in monetary policy, trade figures, employment rates and other factors that drive currency prices. And there are times when a conspiracy by leading nations will drive the market in such a way as to make both fundamental and technical analysis useless. How to beat the Forex conspiracy in these cases is often to resort to trading strategies that make money and contain risk no matter which way the market is going.

Forex Options

Buying Forex options is a time honored means of limiting risk and locking in opportunity in the currency markets. Options are commonly used by companies that need to pay for goods or services in a foreign currency. The relative values of a home currency versus a foreign currency many change drastically between the signing of a contract and when payment is due. Buying calls on the payment currency gives the buyer the right to execute the contract and use the gain to help pay if the payment currency goes up. If the payment currency goes down the buyer does not execute and enjoys the savings of paying in a now-weaker currency. Currency speculators can also use this approach to beat the Forex conspiracy. A trader can proceed as though there were no risk of intervention by foreign banks or changes in monetary policy. He can buy calls if he believes that prices will rise and buy puts if he believes that prices will fall. He can use Japanese candlestick signals such as the Morning Star in Forex trading. If there is no market manipulation he can execute his contract and buy or sell as is profitable. And he can beat the Forex conspiracy if there is one, as he is under no obligation to trade if doing so is not profitable.

Making Money on Every Trade

With the use of sophisticated Forex trading software it is possible to make very small trades throughout the trading day. By scalping small profits during the normal daily fluctuations a trader can make money and limit risk. It is important to set trading stops with each trade and not to get greedy or fearful. This sort of trading does not focus on big market moves, trading within channels, or anticipating big jumps in currency prices. Rather it allows the trader to make money no matter which way the market is moving and no matter what the reason is for the movement. Scalping can be an effective way to beat the Forex conspiracy.