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 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 headlines 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 is to forex players, and charge reduced for it. ufabet เว็บตรง is not uncommon to get a huge selection 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 who day trade forex, require the most recent up-to-the-second news updates in order to facilitate their trading decisions that have to be made at lightning speed. They mostly utilize online financial newswire services such as Dow Jones Newswires, Bloomberg and Reuters, which display the most recent financial news on their computer monitors. Since the speed of news dissemination is vital to traders, many opt for 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 vital that you Forex trading is that each new piece of information could alter the trader?s perceptions of the current 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. Based on 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 there will be a follow-through in prices when other traders see and interpret the same news in a similar way that he / she has, and adopt exactly the same directional bias as the trader subsequently.
News is a very important catalyst of short-term price movements due to the expected impact it has on other market players, and this is in ways an anticipatory reaction for the trader as she or he assumes that other traders will undoubtedly be affected by the news headlines as well.
If the news happens to be bullish, say for the US 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 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 get hold of the delayed news in the morning newspapers or from their brokers. This progressive entry of us 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 since they know that others will be selling, thus pushing the USD exchange rate down. This is in line with the assumption that since other traders will be getting the same bits of news, they’ll be also tend to be affected the same way.
Publicly released news is disseminated to the various newswires. Any trader with access to 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, 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 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 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 do not have that information.
Your voice is among the most powerful tools you possess and using the media is a superb way to get your voice heard. 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 business 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 result from an objective third party.