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 can be suicidal. The forex market is extremely sensitive to the flow of news that is linked 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 all over the world 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. 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 in order to facilitate their trading decisions that have to be produced at lightning speed. Ufa168live make use of online financial newswire services such as for example Dow Jones Newswires, Bloomberg and Reuters, which display the latest financial news on their computer monitors. Since the speed of news dissemination is essential to traders, many choose these online instant news services rather than based on daily newspapers 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 every new little bit of information could alter the trader?s perceptions of the existing and/or future situation associated with 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 forex. Using the news, these traders will undoubtedly be getting ready to cover their existing positions or to initiate new positions. A trader?s action is based on the expectation that you will see a follow-through in prices when other traders see and interpret the same news similarly that he / she has, and adopt exactly the same directional bias because the trader because of this.
News is an extremely important catalyst of short-term price movements due to expected impact it has on other market players, and this is in a way an anticipatory reaction on the part of the trader as he or she assumes that other traders will be affected by the news as well.
If the news is actually bullish, say for the united states dollar, traders who react the fastest will be among the first to get the united states 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 have 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 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 holds true for bearish news, traders will sell because they know that others will be selling, thus pushing the USD exchange rate down. This is using the assumption that since other traders will be getting the same pieces of news, they will be also are generally affected exactly the same way.
Publicly released news is disseminated to the various newswires. Any trader with access to these wires can utilize the information provided, 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 market.
In the 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 forex. Sometimes, such news can provide 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 don’t have that information.
Your voice is one of the most powerful tools you own and utilizing the media is a superb solution to get your voice heard. Probably the most profitable and frequently overlooked free publicity generator may be 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 a lot more credible and believable than advertising given that they appear to result from an objective alternative party.