In this era where information is definitely an extremely powerful and strategic asset, whether to individuals or corporations, and information equals money, especially for a trader, shutting yourself faraway from news could be suicidal. Forex 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 around the world make 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 a huge selection of headlines of news which are potentially relevant to Forex trading from any news service provider on the average trading day.
Traders, especially those who day trade the forex market, require the most recent up-to-the-second news updates so as to facilitate their trading decisions that have to be produced at lightning speed. They mostly utilize online financial newswire services such as Dow Jones Newswires, Bloomberg and Reuters, which display the most recent financial news on their computer monitors. Because the speed of news dissemination is vital to traders, many choose these online instant news services instead of based on daily newspapers like the Wall Street Journal or the Financial Times which carry stale news that is of little use to traders.
The main reason why news is so vital that you Forex trading is that each new piece of information could alter the trader?s perceptions of the existing and/or future situation associated with the outlook of certain currency pairs. When people? Ufa168live or beliefs are changed, they have a tendency to act on these changed perceptions through selling or buying actions in the forex market. Based on the news, these traders will undoubtedly be preparing to cover their existing positions or even to initiate new positions. A trader?s action is founded on the expectation that there will be a follow-through in prices when other traders see and interpret exactly the same news similarly that he / she has, and adopt the same directional bias as the trader because of this.
News is a very important catalyst of short-term price movements due to expected impact it is wearing other market players, and this is in ways an anticipatory reaction on the part of the trader as he or she assumes that other traders will be affected by the news as well.
If the news is actually bullish, say for the US dollar, traders who react the fastest will undoubtedly 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 waiting for certain technical criteria to be met before jumping onto the bandwagon. And you will see those who interact the buying frenzy at a later stage if they obtain the delayed news in the morning newspapers or from their brokers. This progressive entry of us dollar bulls over a period is what sustains the upward move of the US dollar against another currency, with the USD exchange rate going higher against other currencies. The reverse is true for bearish news, traders will sell since they know that others will be selling, thus pushing the USD exchange rate down. This is using the assumption that since other traders will undoubtedly be getting the same bits of news, they will be also are usually affected the same way.
Publicly released news is disseminated to the many newswires. Any trader with usage of these wires can utilize the information given out, and react accordingly in forex. 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 world of Forex trading, you can find no rules or restrictions against insider trading! Anyone who possesses information that’s known and then 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 might not result in real market action if other players don’t have that information.
Your voice is probably the most powerful tools you possess and utilizing the media is a wonderful solution to get your voice heard. The most profitable and often overlooked free publicity generator is the news release. A news release is a brief written summary alerting the local media about your organization news and activities. News releases aren’t only great marketing tools but also far more credible and believable than advertising since they appear to come from an objective third party.