Market Information Tips
Keep in mind the timeliness of the reports you read.
A lot of this stuff has already occurred and the market has already adjusted prices to take the report into account.
If the market has already made its move, you might have to adjust your thinking and current strategy.
Keep tabs on just how old this news is or you’ll find yourself “yesterday’s news.”
You also have to be able to determine whether the forex news you’re dealing with is fact or fiction, rumor, or opinion.
Economic data rumors do exist, and they can occur minutes to several hours before a scheduled release of data.
The rumors help to produce some short-term trader action.
They also can sometimes have a lasting effect on market sentiment.
Institutional traders are also often rumored to be behind large moves.
But it’s hard to know the truth with a decentralized market like spot forex.
There’s never a simple way of verifying the truth.
Your job as a forex trader is to create a good trading plan and quickly react to such news about rumors after they’ve been proven true or false.
Having a well-rounded risk management plan, in this case, could save you some moolah!
And the final tip: Know who is reporting the news.
Are we talking analysts or economists?
Or the owner of the newest forex blog on the block?
Maybe a central bank analyst?
The more reading and watching you do of forex news and media, the more finance and currency professionals you’ll be exposed to.
Are they offering merely an opinion or a stated fact based on recently released data?
The more you know about the “Who”, the better off you will be in understanding how accurate the news is.
Those who report the news often have their own agenda and have their own strengths and weaknesses.
Get to know the people that “know”, so YOU “know”. Can you dig it?
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