Forex trading is one of the most popular forms of trading in the world. It is the buying and selling of currencies with the aim of making a profit. However, it is not an easy task, and traders need to have a deep understanding of the market and its dynamics. One of the most important aspects of forex trading is being able to follow the sharks. In this article, we will discuss what it means to follow the sharks and how to do it.
What does it mean to follow the sharks?
In the forex market, there are two types of traders – the retail traders and the institutional traders. The institutional traders, also known as the sharks, are the big players in the market. They are the banks, hedge funds, and other large financial institutions that trade in huge volumes. These institutions have a lot of money at their disposal, and they can move the market in their favor.
Following the sharks means that you are trying to understand what the big players in the market are doing and trying to align your trades with theirs. It is a strategy that many traders use to increase their chances of making a profit.
How to follow the sharks when trading forex?
1. Analyze the market
The first step in following the sharks is to analyze the market. You need to have a deep understanding of the market and its dynamics. You need to know what factors affect the market, such as economic indicators, political events, and global news. You also need to know how these factors affect the market and how they can influence the sharks’ trading decisions.
2. Use technical analysis
Technical analysis is a popular tool used by traders to understand the market’s trends and patterns. It involves analyzing charts and graphs to identify trends and patterns that can help predict future market movements. This tool can be used to identify the sharks’ trading patterns and help you align your trades with theirs.
3. Follow the news
The news can have a significant impact on the forex market. Major news events, such as economic data releases, political events, and global news, can cause significant market movements. Following the news can help you understand what the sharks are doing and how they are reacting to major events.
4. Use trading platforms
Trading platforms, such as MetaTrader 4 and 5, offer a variety of tools and features that can help you follow the sharks. These platforms offer real-time data feeds, charts, and technical analysis tools that can help you analyze the market and identify the sharks’ trading patterns.
5. Monitor the volume
The sharks trade in huge volumes, and monitoring the volume can help you understand what they are doing. High volume can indicate that the sharks are buying or selling a particular currency, and this can help you align your trades with theirs.
Conclusion
Following the sharks is a popular strategy used by traders to increase their chances of making a profit. It involves analyzing the market, using technical analysis, following the news, using trading platforms, and monitoring the volume. It is important to remember that following the sharks is not a foolproof strategy, and there is always a risk involved in forex trading. However, by following the sharks, you can increase your chances of making a profit in the forex market.
