Before I start going into details I just want you to think about this quote and keep it in your mind:
“It's easier to fool people than to convince them that they have been fooled.”
- Mark Twain, an Author.
First of all you have to understand why there is such a volatility during these news releases and major events.
Is it because the majority of retail traders do the same things and simultaneously open identical trades across many currency pairs? If so then they all should be making money. And if they are all making money then market makers are losing it as this is a zero sum game.
Are you starting to see the point I am making?
It is estimated that the average daily traded volume currently amount to around 5 trillion $ however at the same time the average daily traded volume by retail traders is merely 0.3 trillion $.
Who has the power to influence the market?
It is also very hard to believe that large corporations and financial institutions would rush to exchange the cur…