Not enough knowledge of technical analysis only when trading in Forex. But knowing what makes movement in the same important currency trading market him.
As happens in films of movement and excitement, there is always behind the lines trend double peaks and chart head and shoulders basic driving forces. Those driving in the exchange market strength is the news. To realize how important news Imagine this scenario
Let's say that in the evening news, there was a report that the biggest software company to have its shares will declare bankruptcy.
What is the first thing you will do? How it will change how you think about that company? How will the change in others for a software company that perception?
Of course, the obvious reaction will be eliminated once the sale of the shares of that company. Perhaps this is the conduct of all holders of shares in that company.
The truth is that the news affects the way we think and we deal in trade and investment matters. It is the same in the foreign exchange market.
Let's go back to the previous example and imagine you news report I heard about the bankruptcy of a software company, let's say you heard him one day before the official announcement in the news.
Of course, you will sell all shares that you have, and of course as a result of hearing the news one day before the other two, they have provided more money than anyone else may have heard the news in the evening.
So that looks good for thee, Alice? Unfortunately, those little trick called For the inside information can lead you to the prison in the major economies. Martha Stewart did so famous US TV presenter, image covers of magazines for quite some time.
In the stock market, when you hear the news before anyone else, this is not illegal, either in the currency trading market called it a fair game. Whenever hear or see the news early, the better in their trades, and, of course, this does not criminalize law.
Fun in the subject, that all traders, whether fat cats or small traders and even micro rely on the same news that moves the market, and of course without such news would be market moves too slow. So the news are considered very important in currency trading market maker price movements it and regardless of the technicians, the news is considered the fuel movement in the forex market.