Currency trading is a challenging profession where every person has an equal opportunity. Most people prefer to trade under a central authority. Scams are common in the financial sector where every person thrives to be the best. By having a central authority, the chance of losing money is slim. As investors will follow certain rules, fair play will be expected. Unfortunately, the online industry does not provide opportunities to check the market.
As a result, decentralization emerges where people have the ultimate control over the fund. There are two schools of thought about this strategy. The former group believes this is not right as they fear anarchy. However, the latter group has different ideas. They consider this fair play because Forex cannot be manipulated. Just by learning the technical details, you may expect to find the reliable trade signals.
In this article, we are going to focus on the latter idea and explain why this is good for traders. If you have doubts, be sure that we are not promoting scams. Foreign Exchange has been around for years and even without a centralized authority, it has managed to prosper. Even during corona, Forex is going strong and attracting more customers.
Allow equal chances
A person who has invested $10 dollars can make a fortune if he follows the rules. In stock exchanges, this is impossible. There are many examples of national companies involved in fraud. This often discourages common people from investing. However, the scenario changes in Forex. Every person works as an independent trader who can manage their capital. Even by following the advice of professionals, a novice can make money. Think what would happen if traders have to undergo community. People who have more resources would get privileges.
Since no one has the power to manipulate the price movement, anyone having strong skills can make a decent profit. Many skilled traders who used to trade mutual funds are giving a second thought to this market. Some of them have already embraced the currency trading business as their second source of income. This happened only because they have realized the nature of a decentralized market.
Invisible monitoring by investors
An intriguing piece of information about this industry is to do the combined influence of investors. If traders are united, they can change the price trend. Volatility is affected by news which can be triggered by traders. Frequently there are temporary volatilities that are triggered by a certain group. They want to make the people believe in this trend and make a profit. When participants realize their tricks, they start pushing the market in a certain direction. The concept of ‘bearish’ and ‘bullish’ might help to explain this idea. You may identify the bullish and bearish market by using the slope of the moving average in the higher time frame.
Remember, the ultimate control is vested in customers who have risked their assets. With a centralized government, this would never be possible. Before you start regretting not having governance, understand the benefits provided. The whole population is directing the price movements. It is not run only by very wealthy people.
The global economy balances the market
This is the best feature which attracts people all around the globe. The world economy is the player that maintains the power of balance. Even the United States is unable to affect as their Dollar is paired against another currency. When nations are controlling the prices, you don’t need a central government. Finance is based on information that comes from all sources. Even if hedge funds try to manipulate, they fail due to the economy. This balance makes an even playground for the investors.
No chance of exploitation
Exploiting financial resources is common but in Forex this is impossible. Even banks cannot affect as the participants have the control. You may not realize but later you will understand. Beliefs are often wrong and people in power corrupt the market. By having a uniform authority with no central governance, investors can make money. So, work hard and try to build a simple mechanism to trade the market. Once you do that, you should be able to trade like a professional.