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 off from news could be suicidal. Forex is extremely sensitive to the flow of news that is linked to it, and major short-term currency moves are nearly 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 is to forex players, and charge reduced for it. It is not uncommon to get a huge selection of headlines of news that are potentially relevant to Forex trading from any news company on an average trading day.
Traders, especially those that day trade forex, require the most recent up-to-the-second news updates in order to facilitate their trading decisions that 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 their computer monitors. Because the speed of news dissemination is very important to traders, many opt for these online instant news services instead of based on daily newspapers just 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 every new piece of information can potentially alter the trader?s perceptions of the current 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 the forex market. Using the news, these traders will be getting ready to cover their existing positions or even to initiate new positions. A trader?s action is based 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 exactly the same directional bias as the trader therefore.
News is an extremely important catalyst of short-term price movements as a result of expected impact it has on other market players, which is in a way an anticipatory reaction on the part of the trader as she or he assumes that other traders will be affected by the news as well.
If the news happens to be bullish, say for the US dollar, traders who react the fastest will be among the first to buy the us 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 there will be แทงบอลสเต็ป who interact the buying frenzy at a later stage when they obtain the delayed news in the morning newspapers or from their brokers. This progressive entry folks dollar bulls over a period of time 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 holds true for bearish news, traders will sell since they know that others will be selling, thus pushing the USD exchange rate down. This is in line with the assumption that since other traders will undoubtedly be getting the same pieces of news, they will be also tend to be affected exactly the same way.
Publicly released news is disseminated to the many 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, as they get privy access to order book information in their computer systems, and may also know a thing 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 only to a select few can and do trade that information in the forex market. Sometimes, such news can provide an unfair advantage to these institutional players, but at other times, this isolated news access may not result in real market action if other players do not have that information.
Your voice is probably the most powerful tools you possess and utilizing the media is a superb solution to get your voice heard. The most profitable and frequently overlooked free publicity generator is the news release. A news release is a brief written summary alerting the local media about your business news and activities. News releases aren’t only great marketing tools but additionally far more credible and believable than advertising given that they appear to result from an objective third party.