If someone wants to succeed as a forex trader, it is important to be informed about the international economic and political developments. Being informed about what is happening through the world and especially in all of the major economic and political powers will help you take advantage of investing opportunities or avoid risky situations.
You do not have to predict the effect of the news in the forex market. You should just stay alert when economic reports and major events taking place and stay away of the market during these times. Even if you are using only technical indicators & graphs and you do not care about the fundamentals behind a currency pair you should not ignore the news and especially the time of news announcement.
Considering the different time zones that are involved in the various forex trading sessions around the globe, you will find that something is happening virtually 24 hours a day. Nevertheless, you should focus on the regular announcements and reports in the countries that are of most interest to you.
For instance, if you trade only the EUR/USD pair you should focus on news and events that taking place in Europe and USA. News from other countries will still affect the rate of EUR/USD pair eventually, however, not with such a fast and devastating impact on your trading.
Virtually anything that has an effect on the US economy will affect all the currency pairs in the forex market since the US dollar has the highest traded volume of any currency. So something like a drawback in the US housing market, which might not seem to affect the forex market directly, it actually does.
Economic reports and news is the primary attention but political events and news will have an impact too. For example the election of a new government will influence currency values based on whether the markets believe that the new governance is likely to take the country into a better economic position or not.
In the previous decades it might was difficult to keep yourself informed with everything that was happening around the globe. Today thanks to the internet, you can easily get informed in a matter of seconds about what is happening in every corner of the planet and affects the forex market. Actually, it is so easy to keep up with news and events around the globe that you may possibly end up wasting too much time just checking out each of the online financial websites, blogs and newspapers.
I am still a little bit confused how to earn much money on Forex Trading, i know several people who earn thousands of bucks from forex trading.~’*
I like to learn the basics of forex trading. Do you suggest some online courses for that?
There are tons of free online courses on the internet. You just have to search for them in Google and you will find hundreds of them!
I propose to download free Forex News Headlines Reader on my blog. it will help you to see the latest news directly on the chart.