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 Forex > Forex Trading > Forex Currency Conspirancies: Part 2

Forex Currency Conspiracies: Part 2

Four to five trillion dollars passes through the forex marketplace every day, and more than that on a busy day. 

This means that even the sum of one billion dollars, which is far out of reach of all but a tiny fraction of the world’s population, is too small an amount to significantly influence the market.

But—there are some FX players who do have the power to conspire effectively.

Banks Have Enough Money, and Enough Motive, to Create Currency Conspiracies

In the forex markets, it is mainly the banks that have the power and the influence. This is true not just because banks have money, but because bankers have the know-how to pillage the forex markets if the markets present the opportunity to be pillaged.

The big banks and hedge funds have the ability to invest tremendous sums of money and influence the market in one direction if multiple banks start to "think alike."

Often, it is more the thinking behind bank trades than the actual money that moves markets. For example, if a certain bank’s research department releases a powerful report about a particular currency that’s in trouble, this sets the stage for FX trades galore.

You will see, and may even be, that trader sitting on either side of that trade who jumps on and rides a particular currency pair to a 5 percent rise or decline. By all means, if you sense a conspiracy in action, attempt to participate to the upside.

Especially if the banks are onboard.

The Best Art Is Impersonal

There is an old saying that the best art is impersonal. That is to say the best art is not really about a specific person, but about humanity as a whole. The impersonality of great art can provide a good metaphor for thinking about the FX markets.

Yes, there is another entity out there doing something that could adversely affect your transactions. However, it’s not like they are teaming up and it’s not like they are targeting you specifically. There are hundreds of thousands of people investing in this marketplace.

The banks are not trying to team up and take your money. Some banks, however, are trying to team up to take everyone’s money.

The banks then go against each other’s trades, too, in an attempt to take each other’s money. It’s rare that an allegiance of banks will last long enough to deserve the name conspiracy. Banks are reptiles more than ready to eat their own as needed.

Forex Conspiracy Theories Won’t Make or Break You

There’s a theory about a mathematician and sports gambler in Texas who has found a secret formula that is they key to making gobs of money in forex. There’s a theory that India-based business interests are using the forex markets to transfer money through Iraqi oil companies into United State real estate holdings.

Is there some truth to forex currency conspiracies? Probably.

The one forex conspiracy that does have the most validity is all these companies selling you forex robots by convincing you that they are one hundred percent guaranteed to double and triple and quadruple your wealth overnight.

Forex robot companies are certainly in cahoots to get your money. You will rarely see the forex robot industry tear down one of its own because once you take down one company, you open your company up to being attacked the same way.

Some forex robot companies are false advertising, no doubt, but so are a lot of pharmaceutical companies that want you to buy the hot new organic soap. In both cases, you don’t have to believe these companies and you have no obligation to buy what they are selling. Read the reviews and exercise the money back guarantees as needed.

Do your homework. Don’t be a sucker. And don’t worry too much about conspiracies.  There are forex traders conspiring to take your money, but you have a fair amount of control over whether or not you fall for their trickery.

Important Forex Information

The most important step in currency trading is finding the right broker; our forex experts can help. See our
reviews of forex brokers for more information.  

The earlier you can start building a forex trading system that works for you, the better off you will be when trading the markets. Learn to build forex trading systems.  

In order to understand when to sell short in the forex market, we must examine individual currency short selling strategies. Learn the strategy of short selling currencies.  

While it is true that the bigger your position, the more you can benefit from utilizing the carry trade forex strategy, smaller investors can beneit, too. Read about the carry trade.