In this era where information can be an extremely powerful and strategic asset, whether to individuals or corporations, and information equals money, especially for a trader, shutting yourself off from news could be suicidal. Forex is extremely sensitive to the flow of news that’s 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 around the globe earn a living by processing and translating information into money. Financial news services providers understand how important news would be to the forex market players, and charge reduced for it. It is not uncommon to get hundreds of headlines of news that are potentially relevant to Forex currency trading from any news service provider on the average trading day.
Traders, especially those that day trade forex, require the latest up-to-the-second news updates in order to facilitate their trading decisions which have to be produced at lightning speed. They mostly take advantage 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. Because the speed of news dissemination is very important to traders, many opt for these online instant news services rather than based on daily newspapers like the Wall Street Journal or the Financial Times which carry stale news that is of little use to traders.
Exactly why news is so important to Forex trading is that each new piece 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 selling or buying actions in forex. In line with 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 founded on the expectation that you will see a follow-through in prices when other traders see and interpret the same news in a similar way that he or she has, and adopt exactly the same directional bias as the trader consequently.
News is an extremely important catalyst of short-term price movements due to the expected impact it has on other market players, which 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 or are waiting for certain technical criteria to be met before jumping onto the bandwagon. And you will have those who interact the buying frenzy at a later stage when they get hold of 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 is true for bearish news, traders will sell since they know that others will be selling, thus pushing the USD exchange rate down. That 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 various newswires. Any trader with usage of these wires can tap into the information provided, 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 could also know something that others don?t through their personal contacts in the industry.
In the wonderful world of Forex trading, there are 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 forex. 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 don’t have that information.
Your voice is among the most powerful tools you possess and utilizing the media is a good solution to get your voice heard. แทงบอลสเต็ป and often overlooked free publicity generator is the news release. A news release is really a brief written summary alerting the local media about your organization news and activities. News releases are not only great marketing tools but also far more credible and believable than advertising given that they appear to come from an objective third party.