In this era where information can be 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. Forex is extremely sensitive to the flow of news that is related to it, and major short-term currency moves are almost always preceded by changes in fundamental views influenced by the news headlines Lambert Philipp Heinrich Kindt. Traders around the world earn a living by processing and translating information into money. เว็บบอล88 providers know how important news would be to the forex market players, and charge a premium for it. It isn’t uncommon to get hundreds of headlines of news which are potentially relevant to Forex currency trading from any news company on an average trading day.
Traders, especially those that day trade forex, require the latest up-to-the-second news updates so as to facilitate their trading decisions which have to be made at lightning speed. They mostly make full use of online financial newswire services such as Dow Jones Newswires, Bloomberg and Reuters, which display the latest financial news on their computer monitors. Since the speed of news dissemination is very important to traders, many opt for these online instant news services rather than depending on daily newspapers just 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 important to Forex trading is that all new little bit of information can potentially 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 buying or selling actions in the forex market. In line with the news, these traders will be getting ready 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 the same news in a similar way that he or she has, and adopt 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 is wearing other market players, which 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 is actually 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 waiting for certain technical criteria to be met before jumping onto the bandwagon. And there will be those who join in the buying frenzy at a later stage when they get hold of the delayed news each 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 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 be selling, thus pushing the USD exchange rate down. That is in line with the assumption that since other traders will undoubtedly be getting the same bits of news, they will be also are usually 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 provided, and react accordingly in the forex market. However, institutional players do get information that retail traders don?t, because they get privy access to order book information in their computer systems, and may also know a thing 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 translate into real market action if other players do not have that information.
Your voice is probably the most powerful tools you possess and utilizing 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 really a brief written summary alerting the neighborhood media about your organization news and activities. News releases are not only great marketing tools but also far more credible and believable than advertising since they appear to result from an objective alternative party.