FOREX FUNDAMENTALS: Handling news about foreign exchange
You must have working knowledge of foreign exchange fundamentals if you intend to turn a profit in this market. Comprehension of the discipline behind tables and trends is good, but it cannot take the place of comprehending the basis on which currency markets are premised. Lack of such knowledge can lead to bad timing on trading.
Local and foreign news reports have a strong reflex on the foreign exchange market. This is applicable not only for business news but also for significant news in other sectors. This news may have been out of the blue or expected .
A tornado or an act of terrorism are cases in point as they are unforeseen but could severely influence the market prices. In such events, stop-losses are just about the only solution you would have.
Expected events are like passing out the World Expo venue to a country. Such an event could conceivably affect quite positively the host country's currency investment outlook.
In the same breath, the losing competitors could possibly undergo an inverse effect on their currency. Thus knowing the timeline for such events and the entities concerned is important .
Daily finance reports that are circulated in quite a number of countries are related circumstances. Data on the nation's economy while few and far between , are pretty much anticipated.
It must be recalled that forex trading involves two countries. While checking reports in your home country is easy, it sometimes leads one to forget to validate events in other countries.
The US is a case in point due to the avalanche of data on the dollar coming through the foreign exchange wire. Trading the greenback to a relatively smaller currency further boost this effect. Committing to memory that fact will secure that your market data is always two sided.
Being a novice trader is no excuse for being ignorant of this basic scrutiny of the foreign currency market. Departing the market before major news events is always a sensible move for the newbie.
In time, as you get more skills and feel for the market, it is possible to acquire a trading method premised on the analysis of the fundamentals. Though before this happens, you must first establish a firm foundation in forex fundamentals . - 23159
Local and foreign news reports have a strong reflex on the foreign exchange market. This is applicable not only for business news but also for significant news in other sectors. This news may have been out of the blue or expected .
A tornado or an act of terrorism are cases in point as they are unforeseen but could severely influence the market prices. In such events, stop-losses are just about the only solution you would have.
Expected events are like passing out the World Expo venue to a country. Such an event could conceivably affect quite positively the host country's currency investment outlook.
In the same breath, the losing competitors could possibly undergo an inverse effect on their currency. Thus knowing the timeline for such events and the entities concerned is important .
Daily finance reports that are circulated in quite a number of countries are related circumstances. Data on the nation's economy while few and far between , are pretty much anticipated.
It must be recalled that forex trading involves two countries. While checking reports in your home country is easy, it sometimes leads one to forget to validate events in other countries.
The US is a case in point due to the avalanche of data on the dollar coming through the foreign exchange wire. Trading the greenback to a relatively smaller currency further boost this effect. Committing to memory that fact will secure that your market data is always two sided.
Being a novice trader is no excuse for being ignorant of this basic scrutiny of the foreign currency market. Departing the market before major news events is always a sensible move for the newbie.
In time, as you get more skills and feel for the market, it is possible to acquire a trading method premised on the analysis of the fundamentals. Though before this happens, you must first establish a firm foundation in forex fundamentals . - 23159
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posted by X - Men @ 7:17 AM
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