FOREX NEWS

News can massively impact the forex market to the point that it moves – ForexLive


The importance of keeping tabs with the latest news


Imagine
this scenario: you are going through some
stocks

that you think will give you profits. Two of them caught your attention. You
decided to go with Stock A instead of Stock B. The following day, you turned on
the TV and saw that stock B’s company suddenly announced some strong news that
massively boosts its name. Your first reaction would most likely be regret. You
regret choosing Stock A over Stock B, and you might also be thinking about
buying. Evidently, your take on stock B suddenly made a 180-degree turn. How do
you think other or most of the market participants will react? Most probably,
they are also thinking of buying stock B.

So,
now we understand that behind all those patterns and formations we see in
technical analysis, a fundamental force is there. Hence, if you know how to do
and use technical analysis, you must also understand what drives forex markets.
We can call this force “news.”

The
stock market, forex market, and the news

Now
we have another scenario for you to think about. For instance, a few days
before this news came out, a source told you about it. So, there is a
possibility that you will act upon that news in your trading decisions,
especially if the news source is credible. We can call this process of knowing
the news beforehand “insider trading.” In forex trading, this poses no problems
– the earlier you know the information, the better chances at a profit. There
will be no penalty, sanctions, or anything.

On
the other hand, this is not the case for stocks. Yes, you might have scored a
few more profits, but you might have to face legal actions if you ever get
involved with these kinds of acts. Now, we understand how different the way
things are in the forex market and the stock market, mainly how these two
handle the news.

If
that were you, what would you have done if you knew that a particular stock
would skyrocket because of upcoming news in a few days? Wouldn’t the initial
reaction or thinking be “buy?” Is it not an excellent opportunity to bring home
hefty profits?

Technology
made a massive impact on the lives of everyone

Modernization
and technological advancement made it possible to communicate easily with
anyone who also has access to gadgets and the internet. It might be a great
idea to combine both technology and the latest and hottest news. News is a
driving force that massively impacts our trading point-of-views and even
decisions. The same is true with forex trading.

Is
news really relevant to trading?

Now, anyone can say
that technical analysis is an essential tool in trading. How about the news?
Can we say that it is equally as important? Again, the news is the driving fuel
of the forex market. Every market participant or trader needs to rely on the
news since it is the one that moves the market. If there is no news, it means
that there is no market movement. Now, you tell me, is news important?
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