Any successful foreign exchange trader needs constant access to currency trading information. World events, fiscal reports, financial index status changes, interest rate changes all of these fx news items are critical for the forex trader to know.
You do not necessarily need to be able to predict the news and you do not have to spend hours studying statistical returns in order to work out what the next financial report is likely to mean. Naturally if you can do that, you could have a huge advantage in the forex market place, but most of us are not interested or knowledgeable enough to make best use of our time in this way. Foreign exchange trading from the perspective of fundamental analysis is not the popular choice of the average retail type forex trader.
But even if you prefer technical analysis, relying on charts and indicators for your predictions of price movements as most retail traders probably do, you should not ignore the economic and general news. It is still vital to know which events are happening in the world and when. In fact, the less you know about economics, the more important it is to be aware of the currency trading news calendar so that you can keep well out of the market at the time when major news is about to break. There is a very good economic news resource at the Forex Factory web site which gives an overview of the financial news events happening in the world on a calendar format which is free to view.
Since the forex market involves countries from all around the world that are in many different time zones, you can be sure that there is something happening somewhere pretty much any time of day or night. However, some of these events will be of more significance in causing price fluctuations than others. Because of the importance of the US dollar in the forex market, all traders need to watch for major announcements in the USA. Even if you trade a cross pair such as EUR/GBP you could be affected.
Then of course you need to watch the announcements in any country whose currency you are trading. So for example if you are trading EUR/GBP and EUR/JPY, you will need to keep abreast of announcements across Europe and Japan as well as those from Britain and the USA.
Fortunately, it is very easy to keep yourself informed. Many brokers offer forex news alerts and similar services. You can also discover these elsewhere on the internet. You can consult a forex calendar to check when the next major financial results or announcements are due. You can transfer this to your own desk calendar or sign up for a service that will send alerts to your desktop.
In fact, if you are interested in finance and economics this type of information can be addictive. You may find yourself reading through forex blogs and financial trading forums for a large proportion of the available time each day. So do not take it too far. Remember, the whole aim of keeping up with currency trading news is to allow you to actually get online and trade armed with the information that has been gathered from the currency trading information news feeds.
For more information:Click Here!
No comments:
Post a Comment