In this era where information is definitely an extremely powerful and strategic asset, whether to individuals or corporations, and information equals money, specifically for a trader, shutting yourself off from news could be suicidal. The forex market is incredibly sensitive to the flow of news that is 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 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 isn’t uncommon to get a huge selection of headlines of news which are potentially relevant to Forex trading from any news company on the average trading day.
Traders, especially those who 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 made 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 their computer monitors. Because แทงบอลเว็บไหนดี of news dissemination is vital to traders, many opt for these online instant news services instead of based on daily newspapers just like the Wall Street Journal or the Financial Times which carry stale news that’s of little use to traders.
Exactly 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. Using 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 similarly that he or she has, and adopt exactly the same directional bias as the trader as a result.
News is an extremely important catalyst of short-term price movements due to expected impact it is wearing other market players, which is in a way an anticipatory reaction for the trader as he or she assumes that other traders will 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 undoubtedly be among the first to buy 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 you will see those who join in the buying frenzy at a later stage if they get hold of the delayed news each 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 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 because they know that others will soon be selling, thus pushing the USD exchange rate down. This is using the assumption that since other traders will be getting the same bits of news, they’ll be also tend to be affected exactly the same way.
Publicly released news is disseminated to the various newswires. Any trader with usage of these wires can utilize the information given out, 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 in their computer systems, and could also know something that others don?t through their personal contacts in the industry.
In the wonderful 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 forex. Sometimes, such news may give an unfair advantage to these institutional players, but at other times, this isolated news access may not result in 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 wonderful solution to get your voice heard. Probably the most profitable and often 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 alternative party.