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 faraway from news could be suicidal. The forex market is incredibly sensitive to the flow of news that is linked 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 around the globe earn a living by processing and translating information into money. Financial news services providers know how important news is to forex players, and charge a premium for it. It is not uncommon to get hundreds of headlines of news which are potentially relevant to Forex currency trading from any news service provider on the average trading day.
Traders, especially those that day trade the forex market, 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 full 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 opt for 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 vital that you Forex trading is that every 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 undoubtedly be preparing 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 exactly the same news in a similar way that he or she has, and adopt the same directional bias because the trader therefore.
News is an extremely important catalyst of short-term price movements because of the expected impact it is wearing other market players, and this is in ways an anticipatory reaction for the trader as he or she assumes that other traders will be affected by the news headlines as well.
If the news happens to be bullish, say for the united states dollar, traders who react the fastest will undoubtedly be among the first to buy 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 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 of us 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 holds true for bearish news, traders will sell since they know that others will soon be selling, thus pushing the USD exchange rate down. Ufa168live is in line with the assumption that since other traders will undoubtedly be getting the same pieces of news, they’ll be also are usually affected exactly 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, as they get privy access to order book information within their computer systems, and may also know something that others don?t through their personal contacts in the market.
In the wonderful world 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 the forex market. Sometimes, such news may give an unfair advantage to these institutional players, but at other times, this isolated news access might 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 using the media is a fantastic way to get your voice heard. Probably the most profitable and frequently 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 additionally a lot more credible and believable than advertising given that they appear to result from an objective alternative party.