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Trading Market News and the Different Types

Started by upamfva, 2022/04/11 10:52PM
Latest post: 2022/04/13 12:00PM, Views: 62, Posts: 2
Trading Market News and the Different Types
#1   2022/04/11 10:52PM
upamfva
Trading Market News and the Different Types

The impact of news on the market is uneven. Some segments react more strongly and vice versa. Therefore, one of the main principles of successful trading the news is to find the event that will have the greatest impact on the market. The more significant the news is, and the more precisely it hits the right segment, the more volatile the assets will be after publication.To get more news about boursetrade, you can visit wikifx.com official website.
You can make decisions in advance and even place pending orders to open long or short positions.

Another vital principle of news-based trading strategies is to buy rumors and sell facts. It is namely challenging for beginners who do not yet have enough experience to understand the mechanism of pricing before the release of forecasts and after the publication of real data.

The basic principle of trading on the news is to look for an event that can stir up the situation in a particular market. For traders' convenience, the news is sorted and each one is assigned a different rating. The more important the news is, the more volatility it can cause. Therefore, the top of the rating gets the most "explosive" news. However, each trader can conduct his own analysis and decide from which event trading on the news will be most productive in his case.

Each news affects the market in its own way. But in fact, it does not give a huge advantage to traders who have grasped the intricacies of working with fundamental analysis. Of course, knowing the specifics of a country's economy with an approximate understanding of what will be published tomorrow or the next day's Central Bank refinancing rates or unemployment rate, can give a fairly clear picture of price movements. On the other hand, the "hot" news about a major bankruptcy or the resignation of the responsible person may turn the situation to the exact opposite side. Therefore, successful news trading depends on the ability to track important news in advance to know exactly when it will be published. This approach will allow making decisions in advance by placing pending orders.

We are sure you know that news in Forex trading can be divided into two groups - expected (scheduled) and unexpected (unscheduled). Of course, you cannot trade successfully, unless you know what is the difference between them and how to trade each of them. Even though it seems to be obvious and logical, let us consider both, so you will be able to adjust your news-based trading strategies if needed.

Trading on news that is scheduled

This type of news can be considered as the simplest one since the date and time of the news release is known in advance. Of course, the information that is to be announced is not known, it is still widely used by traders with the help of analysts` forecasts and the market sentiment. Let us have a look at the different scheduled news that can be a great tool for traders to take advantage of.
Political and economic news is a powerful source of fluctuations in global financial markets. Even rumors about such events as dropping interest rates of central banks, lawsuits of governments, and large corporations, a sharp rise of inflation and unemployment, or worsening of the international situation invariably cause indignation on exchanges.

Market volatility over the past decade has led many investors to question the wisdom of the "buy and hold" strategy. Against this framework, trading the news has become an integral component of many traders' investment plans. While long-term investors only rarely allow themselves to apply news-based trading strategies, day traders do so many times during a session. So now we can confidently say that learning how to trade on the news is an essential skill for every trader.Speaking about the expected news, the first thing coming to mind is Forex economic calendar for traders. It reflects the most important macroeconomic indicators (events in different countries, scheduled time of news release, analytical forecasts, previous values) that affect the quotes of the main and correlated with them assets.
In macroeconomic terms, much depends on the country:

Trading on the news in the UK news is linked to the retail price and sales growth, Bank of England claims, unemployment, GDP growth, and the consumer price index.
In stable Germany, the strongest indicators are the ZEW Economic Expectations Index and the Business Climate Index (IFO), both of which are composite indicators. European Central Bank ads also resonate.

In the U.S., Canada, New Zealand, and Australia, unemployment, consumer prices, the refinancing rate, GDP, and the CPI are all top priorities.
It is essential to keep track of the news in advance to know when a publication will be released and on what trading instruments it will affect. This way, you can make decisions in advance and even place pending orders to open long or short positions.


Re: Trading Market News and the Different Types
#2   2022/04/13 12:00PM
klobixaz
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