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. The forex market is incredibly 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 world 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 a huge selection of headlines of news which are potentially relevant to Forex trading from any news company on an average trading day.
Traders, especially those that day trade forex, require the latest up-to-the-second news updates to be able to facilitate their trading decisions that have to be produced at lightning speed. They mostly make use of online financial newswire services such as Dow Jones Newswires, Bloomberg and Reuters, which display the most recent financial news on the 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 important to Forex trading is that each 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 have a tendency to act on these changed perceptions through buying or selling actions in the forex market. In line with the news, these traders will be preparing to cover their existing positions or 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 exactly the same news in a similar way 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 due to the 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 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 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 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 soon be selling, thus pushing the USD exchange rate down. This is based on the assumption that since other traders will be getting the same pieces of news, they’ll be also tend to be affected the same way.
Publicly released ufabet เว็บตรง is disseminated to the various newswires. Any trader with usage of these wires can tap into the information given out, and react accordingly in forex. However, institutional players do get information that retail traders don?t, because they get privy usage of 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 world of Forex trading, you can find no rules or restrictions against insider trading! Anyone who possesses information that is known and then 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 translate into real market action if other players don’t have that information.
Your voice is among the most powerful tools you own and using the media is a wonderful way 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 neighborhood 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 since they appear to result from an objective third party.