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Tips for Forex Trading Based on News
The answer to your query is going to be long since there are a lot of factors that are involved when trading on basis of news announcements. Consequently, I will post only one portion of the answer now and add the second section after a few days. The final and third part in time for the weekends. Take note that the market for currencies is comprised of a complicated set of relations between currencies. Some might not be obvious to the casual trader An example could be currencies that interact unexpectedly with other currencies, where one may end up losing any potential profit and doubling risk. This is because traders who are successful should keep this in mind when trying to analyse the market. Therefore, the conclusion is that to be able to perform a sound analysis regarding the effects of news releases, a trader has to be informed about other currency pairs, aside from the currency they use for their interest. Most traders believe that there are eight currencies that a knowledgeable trader should keep tabs on. Keep in mind that these aren't the most significant, and constitute the minimum range of currencies that are included when conducting a thorough analysis. These currencies include the Japanese yen and the US dollar as well as the Swiss Franc, the Euro the Australian dollar The New Zealand dollar, the British pounds and the Canadian dollar. The skilled trader has to stay abreast of changes in use regarding these currencies. It is vital to know that in addition to knowing the date of when important news is going to be released, the difference between the actual result and the whisper values or numbers are extremely important when predicting how currency will react to actual news. Whisper values are only estimates or anticipated values, which are simply numbers that were expected by everyone to be released. INTERIOR DESIGN Asian Model Cams cheap sex cams cheap sex cams cam soda As the following installment of this answer I will go over the key statistics and news to be aware of and when they are likely to show up. In the second part of the series that focuses on trading news which, by the way may be a little late, as I didn't realize that I'd be keeping an eye on for the G 20 this week, we'll look at the important times where you should be listening to news stories. The times listed here refer to Eastern Standard Time. News releases for each country: 1. US - 830 to 1000 2. Japan from 1850 to 2330 3. Canada - 700 to 830 4. United Kingdom - 200 to 300 to 5. Italy - 345 to 500 6. Germany - 200 to 600 7. France 245 to 400 8. Switzerland - From 145 to 530 9. New Zealand - 1645 to 2100 10. Australia - 1730 to 1930 That's the time when you should be watching for news on these nations. Now the next question is what is the crucial information you need to be watching for. As far as economic announcements are concerned you must be watching out for the following: 1. Interest rate decision 2. Unemployment 3. Business sentiment surveys 4. Retail sales 5. Industrial production 6. Prices of Inflation, Consumer prices or producer price 7. Surveys of the manufacturing sector 8. Consumer confidence surveys 9. Trade balance Make sure to keep in mind that if you wish to be a well-informed broker as far as information about trading is involved, then you have to be aware of all these currencies, as well as every one of these economic occasions. It could seem like an overwhelming task and yet, many brokers have an economic calendar on their sites. You can receive notifications about coming events sent to you, but in the event of news that is unexpected is concerned, you have no choice but to hear or read about and use the above mentioned times. In addition, it will help you trade better as it gives you an understanding of the market. In the next installment we'll look at trading implications of news releases. In this final installment on news releases for trading, let's take a look at the implications every time key economic data are released. The first thing I would like to emphasize that, even if you've been trading on news releases for many years, you need to remember that reaction times can change depending on many variables, most notably the current conditions prevailing in the economic system. This is the reason it is essential to stay in touch with the current news releases since it gives you a feel on the pulse of the market which will allow you to get an accurate idea of what figures are the major concern of the market. One question that is often been asked by newbie traders is, how long will the reaction to news releases last? There were studies done prior that, and they attempted to answer the duration of reactions to news releases. While it was seen that the market's effects were most prominent during early in the 48 hour period after the release of a news item, their effects could still be observed going into the fourth day. This means that you'll be able to be able to observe these effects within the first 96 hours following a news release. Another issue is how to proceed when trading news. In general, traders trade news by watching out for the consolidation period which typically precedes major news release. They take positions and they trade the breakout as the news is released. Keep in mind that this is how most traders do. Therefore, you need to watch out also for a situation where the market's expectations turn into self-fulfilling prophecies. In the past one of the main factors which made trading the news difficult, was the issue of volatility. Today, this is even more evident due to an unstable world economy. In order to keep yourself from being burned, make sure you're safeguarding your investments by putting stops on them. In addition, it's essential to have an appreciation for the rhythm of the market in the various countries you're trading. This attention to detail is what separates excellent traders from ordinary traders, because like in everything else, going the extra mile often makes the difference between an average deal and a successful one.

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