Monday, 5 August 2013

Forex News and its importance in Trading

The name of the game in the Forex trading is predicting the movement of the market.  Whoever knows this can surely make the bundle. Most brokers offer platforms with integrated news and fundamental analysis. This is not a casino and if you don’t have the technique then you are making fundamental mistake that will cost you big losses. Forex News is the trading strategy in the market based on economic news. Any news about nation’s economy would be directly affecting that country’s currency. This is where Forex news comes into action. Anyone who has observed the market before, the release of any economic data would know that there is potential for earnings that can be harnessed.

The market is open for 24 hours a day and any news in any country during the day or night will immediately impact this market. Usually market will have slight change just before the news announcement and the market will have great change after the announcement. With these Forex Updates, trader is trying to speculate on the impact of announcement. There is no question that major news can have a profound impact on the market place. That is why most traders try to capitalize on the release of major news announcement.

The contrary point is that most investors already follow these strategies. Since there are large number of traders who are investing based on news, the market is quick in responding to the change from announcements. Most of the announcements have a long term impact on the market place. The impact of the news can felt only for a day or sometimes may be less than that.  Trading news aims to make more profit by forecasting the price. The main difference between news trading strategy and other technical aspects is that technical analysis requires no knowledge of price drivers. The great thing about this is that you can set stop losses very close to the currency market rate so that can avoid large losses.