Foreign Exchange (Forex) trading is the simultaneous buying and trading of different currencies around the world. Nowadays, an average person can stay home and trade in the Forex 24 hours a day, seven days a week. A Forex trader must understand the important details of the Forex market. Why prices fluctuate and how to profit from this volatility and price changes impulses? A good investor needs a good level of experience, acceptance of risk, working knowledge of the market, history, strategies and trends. Related news is the one of the most important source for achieving above mentioned goals.
The news is unimportant in itself. The headline itself may not be that important in any financial or Forex market but how the Forex market participants (as a group ) react to them is important. While all traders have the same facts in view, they all make different conclusions and findings. These all things add up and make the trends in the Forex market.
We have better and faster news sources than ever, but most traders do not use the news correctly and end up losing. Here's the correct way to use and how to get great benefits? Here we will not examine the trade news itself but how they can be used to detect changes in sentiment and great reward trades?
Many market traders watch the commerce news and their Analysis. Similarly, Forex market also discount instant news and the market is looking toward the future and also the news reflects the greed and fear of the majority of the losers. We know from history that markets collapse when they are more pessimistic people in the market and fear is the result. When there are more optimistic then greed takes over the market. You can use this Greed and fear to your benefits. If you follow News Forex Charts, you can see the reality of prices and you can also see price spikes, where participants push prices away from fair value, due to greed and fear. You can see these peaks on a graph of the currency, news not last long and change can be very helpful in making a counter-trade and time your trading signal.
Let's say, you have news that the market will never stop rising or falling possibilities, has the height of greed and fear. The herd simply pushes prices to measure fair value. If you used forex charts you would have seen the culmination peak, then collapsed and had several thousand pips profit. Operators often take what the papers say as gospel and lose. If it was that easy to follow the news and trade in the direction of the big traders then everyone will get profits but it's not the case. So my advice, Play safe and keep yourself away from greed and fear. In other words, don't follow the herd. Always take an honorable exit before herd change the direction.
Julia Benson
is experienced in personal Forex trading with years of experience in the Forex market
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