Anyone who has a cursory interest in Forex will know that they must depend on any and all news to understand what is happening in the market. This is something that is important and necessary, more than breathing for anyone. The only reason every trader has to invest in a certain currency is because they know what is happening in the country. That would only be a crazy person who would spend their money only on rumors!
It is wise for novice traders to remember that it is not only financial news from new market possibilities that must be learned. Everything is interrelated, so social and political news, apart from editorial opinion must also be absorbed. It is a well-known fact that what is known on the international scene is a very runny version of what happens at home, sometimes even completely wrong. The only way to measure whether a currency is worth trading is to read the “local” news itself.
The prize that is owned by a good Forex trader is the ability to filter and filter impurities and find gold information nuggets that will help him make good decisions. This helped him read the trends which were later confirmed in the financial news section.
It is a frightening thought that one wrong decision can actually bankrupt a trader or even a brokerage company in a blink of an eye. That’s why experienced traders pay attention not only to current exchange rates (which fluctuate wildly throughout the day) but also to other activities that appear to be unrelated in the stock market and the ongoing bond and treasury rates. Put together, it will make possible predictions about how the currency itself will react over several trading days.
If trade is not carried out in local currency, one good source of information is expert or professional comments that will be broadcast on international financial channels. Although it is not the gospel of truth, these are people who know the local market inside and outside so it would be wise to consider their opinions when decisions are being taken. Remember, what happens on the local scene will definitely affect currencies more than what happens around the world.
Another factor that will affect currency stability is the market reaction to financial derivatives, securities, futures, and options currently offered. Apart from that, the headlines are something that must be learned frequently. This is the reason why there are continual updates on the trading floor, not just the first thing needed in the morning and reviews after the trading day ends.
But all of that opinion has nothing to do with the fact that if the trader had no experience on the floor, the news would mean nothing but bullshit to him. There is no better teacher than practical and actual experience.