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 almost always preceded by changes in fundamental views influenced by the news headlines Lambert Philipp Heinrich Kindt. Traders around the world make a living by processing and translating information into money. Financial news services providers understand how important news would be to forex 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 company on an average trading day.
Traders, especially those that day trade the forex market, require the most recent up-to-the-second news updates so as 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 their computer monitors. Since the speed of news dissemination is very important to traders, many opt for these online instant news services rather than 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 every new little bit 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?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. Based on โต๊ะ ส นุ๊ ก มาตรฐาน , these traders will be getting ready 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 the same news in a similar way that he or she has, and adopt the same directional bias because the trader due to this fact.
News is a very important catalyst of short-term price movements due to expected impact it has on other market players, and this is in ways an anticipatory reaction for the trader as he or she assumes that other traders will undoubtedly 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 get the us dollar, followed soon by other traders who may react slower to the news or are looking forward to certain technical criteria to be met before jumping onto the bandwagon. And you will see those who join in 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 united states dollar against another currency, with the USD exchange rate going higher against other currencies. The reverse is true for bearish news, traders will sell because they know that others will soon be selling, thus pushing the USD exchange rate down. That is based on the assumption that since other traders will be getting the same bits of news, they will be also are generally affected the same way.
Publicly released news is disseminated to the many newswires. Any trader with access to these wires can utilize the information provided, and react accordingly in the forex market. 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 may also know something that others don?t through their personal contacts in the industry.
In the world of Forex trading, there are no rules or restrictions against insider trading! Anyone who possesses information that is 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 translate into real market action if other players do not have that information.
Your voice is among the most powerful tools you possess and utilizing the media is an excellent solution to get your voice heard. The most profitable and often overlooked free publicity generator may be the news release. A news release is a brief written summary alerting the neighborhood media about your business news and activities. News releases are not only great marketing tools but additionally a lot more credible and believable than advertising given that they appear to come from an objective alternative party.