In this era where information is definitely an extremely powerful and strategic asset, whether to individuals or corporations, and information equals money, especially for a trader, shutting yourself off from news can be suicidal. Forex is incredibly sensitive to the flow of news that’s related to it, and major short-term currency moves are nearly always preceded by changes in fundamental views influenced by the news headlines 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 the forex market players, and charge reduced for it. It isn’t uncommon to get hundreds of headlines of news that are potentially relevant to Forex trading from any news service provider on the average trading day.
Traders, especially those who day trade the forex market, require the latest up-to-the-second news updates to be able to facilitate their trading decisions which have to be produced at lightning speed. They mostly utilize 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 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 each new piece of information can potentially 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 buying or selling actions in forex. Using the news, these traders will be getting ready to cover their existing positions or 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 the same news in a similar way that he or she has, and adopt exactly the same directional bias as the trader as a result.
News is a very important catalyst of short-term price movements as a result of expected impact it is wearing other market players, which is in ways 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 happens to be bullish, say for the united states 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 have those who join in 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. That is based on the assumption that since other traders will be getting the same pieces of news, they’ll be also are usually 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, as 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 แทงบอลสเต็ป 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 forex. 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 don’t have that information.
Your voice is one of the most powerful tools you own and using the media is a great 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 additionally far more credible and believable than advertising given that they appear to come from an objective alternative party.