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. The forex market is extremely 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 headlines Lambert Philipp Heinrich Kindt. Traders all over the world make a living by processing and translating information into money. Financial news services providers understand how important news is to forex players, and charge a premium for it. It isn’t uncommon to get a huge selection of headlines of news which are potentially relevant to Forex currency trading from any news service provider 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 most recent financial news on their computer monitors. Because the speed of news dissemination is essential to traders, many choose these online instant news services instead of depending on daily newspapers just like the Wall Street Journal or the Financial Times which carry stale news that’s of little use to traders.
The main reason why news is so important to Forex trading is that all new little bit of information could alter the trader?s perceptions of the current and/or future situation relating to the outlook of certain currency pairs. When people?s opinions or beliefs are changed, they tend to act on these changed perceptions through selling or buying actions in the forex market. Using the news, these traders will undoubtedly be getting ready to cover their existing positions or even to initiate new positions. A trader?s action is based on the expectation that you will see a follow-through in prices when other traders see and interpret exactly the same news similarly that he or she has, and adopt exactly the same directional bias because the trader consequently.
News is an extremely important catalyst of short-term price movements due to the expected impact it is wearing other market players, which is in ways an anticipatory reaction for 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 be among the first to buy 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 interact the buying frenzy at a later stage when they obtain the delayed news each 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 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. ufabet เว็บตรง is in line with the assumption that since other traders will be getting the same bits of news, they will be also tend to be affected the same way.
Publicly released news is disseminated to the many newswires. Any trader with access to these wires can tap into the information provided, 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 within their computer systems, and could also know something that others don?t through their personal contacts in the market.
In the wonderful world of Forex trading, there are 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 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 possess and using the media is a wonderful way 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 local media about your organization news and activities. News releases aren’t only great marketing tools but also a lot more credible and believable than advertising given that they appear to result from an objective third party.