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 faraway from news could be suicidal. Forex is extremely 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 make a living by processing and translating information into money. แทงบอล77 providers know how important news is to the forex market 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 service provider on an average trading day.
Traders, especially those who day trade forex, require the latest up-to-the-second news updates so as 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. Since the speed of news dissemination is vital to traders, many opt for these online instant news services rather than depending on daily newspapers like the Wall Street Journal or the Financial Times which carry stale news that is of little use to traders.
Exactly why news is so vital that you Forex trading is that all new piece 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 undoubtedly be preparing 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 exactly the same news similarly that he / she has, and adopt the same directional bias as the trader due to this fact.
News is an extremely important catalyst of short-term price movements as a result of expected impact it has on other market players, and this is in a way an anticipatory reaction on the part of the trader as she or he assumes that other traders will be affected by the news headlines as well.
If the news is actually bullish, say for the US dollar, traders who react the fastest will be among the first to buy the us dollar, followed soon by other traders who may react slower to the news headlines 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 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 is true for bearish news, traders will sell because 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 undoubtedly be getting the same pieces 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 provided, and react accordingly in the forex market. However, institutional players do get information that retail traders don?t, as they get privy usage of order book information within their computer systems, and may also know a thing 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’s 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 might not result in real market action if other players don’t have that information.
Your voice is one of the most powerful tools you possess and utilizing the media is a good way to get your voice heard. Probably 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 business news and activities. News releases are not only great marketing tools but additionally far more credible and believable than advertising given that they appear to come from an objective alternative party.