In this era where information can be an extremely powerful and strategic asset, whether to individuals or corporations, and information equals money, specifically for a trader, shutting yourself faraway from news can be suicidal. The forex market is incredibly sensitive to the flow of news that’s linked to it, and major short-term currency moves are almost always preceded by changes in fundamental views influenced by the news Lambert Philipp Heinrich Kindt. Traders all over the world earn a living by processing and translating information into money. Financial news services providers know how important news would be to the forex market players, and charge a premium for it. It is not uncommon to get hundreds of headlines of news which are potentially relevant to Forex trading from any news company on the average trading day.
Traders, especially those that day trade the forex market, require the latest up-to-the-second news updates in order to facilitate their trading decisions which have to be made at lightning speed. They mostly make full use of online financial newswire services such as for example Dow Jones Newswires, Bloomberg and Reuters, which display the latest financial news on the computer monitors. Since the speed of news dissemination is vital to traders, many choose these online instant news services rather than depending on daily newspapers like the Wall Street Journal or the Financial Times which carry stale news that’s of little use to traders.
Exactly why news is so important to Forex trading is that all new little bit of information can potentially alter the trader?s perceptions of the existing and/or future situation associated with the outlook of certain currency pairs. When people?s opinions or beliefs are changed, they tend to act on these changed perceptions through buying or selling actions in forex. Using the news, these traders will be preparing to cover their existing positions or even to initiate new positions. สูตรบอลบวกทุกวัน ?s action is founded on the expectation that you will see a follow-through in prices when other traders see and interpret the same news similarly that he / she has, and adopt the same directional bias because the trader therefore.
News is an extremely important catalyst of short-term price movements because of the expected impact it is wearing other market players, and this is in ways an anticipatory reaction on the part of the trader as she or he assumes that other traders will undoubtedly be affected by the news as well.
If the news is actually bullish, say for the united states dollar, traders who react the fastest will be among the first to get the united states dollar, followed soon by other traders who may react slower to the news headlines or are looking forward to certain technical criteria to be met before jumping onto the bandwagon. And there will be those who join in the buying frenzy at a later stage when they obtain the delayed news in the morning newspapers or from their brokers. This progressive entry of us dollar bulls over a period of time is what sustains the upward move of the united states dollar against another currency, with the USD exchange rate going higher against other currencies. The reverse holds true for bearish news, traders will sell since they know that others will soon be selling, thus pushing the USD exchange rate down. This is using the assumption that since other traders will be getting the same pieces of news, they’ll be also are generally affected exactly the same way.
Publicly released news is disseminated to the various newswires. Any trader with access to these wires can utilize the information given out, and react accordingly in the forex market. However, institutional players do get information that retail traders don?t, because they get privy access to order book information in their computer systems, and may also know something that others don?t through their personal contacts in the industry.
In the wonderful world of Forex trading, you can find no rules or restrictions against insider trading! Anyone who possesses information that’s known only to a select few can and do trade that information in the forex market. Sometimes, such news may give an unfair advantage to these institutional players, but at other times, this isolated news access may not translate into real market action if other players do not have that information.
Your voice is one of the most powerful tools you own and using the media is a good solution to get your voice heard. Probably the most profitable and often overlooked free publicity generator may be the news release. A news release is a brief written summary alerting the neighborhood media about your organization news and activities. News releases aren’t only great marketing tools but also far more credible and believable than advertising given that they appear to come from an objective alternative party.