In this era where information is definitely 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 incredibly 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 around the world make a living by processing and translating information into money. Financial news services providers know how important news would be to forex players, and charge reduced for it. It isn’t uncommon to get a huge selection of headlines of news that are potentially relevant to Forex trading from any news service provider on the average trading day.
Traders, especially those who day trade the forex market, 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 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 vital to traders, many opt for these online instant news services instead of based on daily newspapers 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 piece 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 tend to act on these changed perceptions through buying or selling actions in forex. Using the news, these traders will be preparing to cover their existing positions or to initiate new positions. A trader?s action is based on the expectation that there will be a follow-through in prices when other traders see and interpret exactly the same news in a similar way that he / she has, and adopt the same directional bias as the trader because of this.
News is a very important catalyst of short-term price movements due to expected impact it is wearing other market players, and this is in a way an anticipatory reaction for the trader as she or he 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 get 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 interact the buying frenzy at a later stage if 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 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 pieces of news, they’ll 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 the forex market. However, institutional players do get information that retail traders don?t, because 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 forex. 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 wonderful solution 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 neighborhood media about your organization news and activities. ยูสเซอร์ releases aren’t only great marketing tools but also a lot more credible and believable than advertising given that they appear to come from an objective alternative party.