How to use market news to rich your goals
Forex News: Financial News. Forex Analytics
You have probably heard a lot of things about Forex and are now unsure what to think. But what is Forex? Short for Foreign Exchange Market, it is a place where literally everyone can buy and sell money. And by literally everyone we mean anyone – from normal, average people, to both large and small companies, and even governments. This is why Forex is the most fluid market in the entire world.
Let’s say you have read every piece of information you could lay your hands on, relating to Forex, and decided to trade currencies and precious metals on the Forex market. Now what? Well, now you have the benefit of only picking from a handful of currencies, as opposed to thousands and thousands of stocks on other type of markets. Many insiders will tell you that currency trading is a lot easier than trading stocks. This is partially true.
However, this type of trading does involve a lot of uncertainty. You have to be smart about it and try to minimize any potential risk. All successful traders will tell you that it’s not about luck, but preparation in advance. You cannot simply guess how trends will be tomorrow, or if any currency, whether it be USD, GBP, or EUR, will either increase its value or not.
It’s all about rates. What are rates? The EUR/ USD rate refers to the amount of US dollars one single euro can buy. If you believe the euro will be greater than the dollar the next day, you simply buy as much EUR as you can with USD. If you are right, and this happens, you exchange them back and now have profit. If you are wrong, you will lose a lot of capital, and your Forex portfolio will take a major hit.
To put it in simpler words, if a person from the United States decides to go on vacation somewhere in Europe – let’s take the United Kingdom as an example – he or she will have to exchange dollars for pounds. This example refers to a small scale. However, if we take everyone in the USA and have them go to the UK, the amount of money changed will be much larger. In this case, the GBP’s value will rise. This is why you cannot simply guess, or rely on luck – it’s all about demand, and this cannot be controlled.
What to do?
Information is the key here. You need to start by preparing yourself, and know your trading options. You need to have a strong command of Forex analytics. Forex news online platforms will be your new best friend. Scan through all of them to better inform yourself on how certain currencies behaved in the past. This will give you an idea on certain trends, and thus you will be better equipped for future trading.
While Forex news are great, to be a good trader you need to look further still. Do not simply rely on a piece of information – you need to double or triple check it. Exchange rates can also be greatly affected by any level of uncertainty that political turmoil can cause. The political and economic uncertainty provoked by certain events deeply impact currency rates, leaving them with an indubitable sensitivity for a period following the said event. As a trader you need to have a better understanding of the length and depth of potential economic showdowns caused by political affairs, and the extent to which they can influence a certain currency rate.
As an example let’s take the British pound before and after Brexit. Its value did decrease after the referendum and many people who had GBPs in their accounts took a major hit to their portfolio. Those who were well informed on the matter knew that the pound was going to continuously slide lower during the following period, and either forebode buying any GBPs or sold everything they had, thus minimizing the loss.
With the Forexmetic news, you will manage to have a quick learning curve and end up with a better understanding of how to analyze information.
Remember – information is the key to good trading. Stay on top of Forex news, and never invest more than you can afford to lose!