FOREX signals: way better than FOREX news?
What is Forex news? This is news bulletins, reports, statements of well-known analysts, reviews and etc. When we read Forex news, we hope that they will help us in the real Forex trading. We buy myriad news columns, and sometimes we pay for them huge sums of money. We want to be aware of all Forex news and find out about upcoming events before it’s releasing. We hope that this will help us understand where the market goes to. But what is Forex news indeed and can they be a substitute for good trading signals?
Let's look at the points of what constitutes an ordinary Forex news column:
-Reports & Statements: of course, if you are trading stocks is an incredibly useful information. Statements give us an insight into what''s going on with the current company and whether or not to wait on it’s growth or the analysts are predicting a fall. But is it really important news for Forex trader? The fact is the market often does not follow the news. This simple truth that can’t be realized by a lot of traders.
News follow the market in 80% times, but not vice versa.
Paradoxically, but it is a fact. Of course, the terrorist attacks, such as Sept. 11, 2001 in USA, always provoke surges of currency, but this is exceptional moment. In most cases, the news can give a better understanding of where a case can go to market, but could not predict. Moreover, markets often fail to respond to some very important statements, and some, on the contrary, react too much. Reports are not a good indicator for trading. Although, sometimes, it is useful as an additional tool.
-Statements of well-known people: surely this is something that can increase the open interest of traders to the currency. But for how long? This is a dangerous game, and you need to understand where the wind blows to. These people are not interested in sharing the money with you. For example, talking to the Prime Minister of Japan, George Bush had said about the prospects of the yen devaluation. Japanese leader almost fell off his chair. Tokyo stock market was at panic, the yen began to rapidly crumble. This Bush’s mistake had cost more than $ 4 billion for the county. You need to be alert, but not very trusting to their words. It may cost you a few triggered stop-loss orders.
We are not saying that Forex news is bad, but you should be very cautious in their interpretation. In this regard, trading signals - this is much better than Forex news. Using them you have at least a clear understanding of what to do and what operations to perform. We recommend to use the Forex signals and simultaneously keep track of a several free news columns. Compare the facts and try to understand why analysts recommend perform such operations. Independent analysis is a goal for your success.