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Using News to Advance in Forex Investments

 

Foreign exchange is a 24-hour activity. Trading may have ended in your time-zone but it may have just started in other time zones. Your currency might have been locked but your other currency (for buying or selling) is still changing.



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That may require you to wake up for 24-hours to monitor the changes but no one on earth could do such as thing. You could barely last for one week if you wake for 24 hours just to monitor the changes in Forex investments.



But that does not mean you cannot do anything but wait for the news the next day. There are still indicators wherein you will have a good idea of improving in your Forex investments. The good source? The daily news.



News printed in paper, on the radio, in the internet or in any other media publications could be a good source of indicators for Forex investments. You just have to know when to get them and how to use them as future indicators.



Timing the News

You do not have to be a news hog for the whole day. There are certain times of the day where you can get a good indicator for the rest of the day’s trading. The best time of the day to grab the latest news for Forex investments is the early morning news, locally.



The first wave of news during the business hours is a clear indicator as to how trading will fare for that day. That means you also have to consider the early morning news in local time in other currencies that you are trading. Their first news of the day will also set the tone of currency trading for the rest of the day.



Why the Morning News?

Morning news or more specifically, news released in the first business hour is often the most read news by any investor. This news will tell the current economic situation. They know this will affect their trading because this will be the news that will be read by different investors. If the news is not good, then there could be a gloomy day for investors and in effect Forex trading.



Since it is often rare to trade in more than four or five currencies, you can minimize your information gathering. You do not even have to wake up to read the first news. Thanks to the internet, you can now read the news and sort them by time.



The later news may just be interpretation of the early news and the information may a bit distorted in the sense that it is now considered as an opinion.



The following are the type of news that you should be looking for at the start of the day. These types of news will have a direct impact in trading and Forex investments:



• Unemployment
• Retail sales
• Inflation
• Interest Rate
• Business and Consumer Confidence
• Manufacturing Reports
• General Trading News



Avoiding Trouble with Forex Investment News

The news for Forex trading should only be used as indicators and will only provide clues and educated guess on how you will trade for the rest of the day.



During the day, you will be receiving additional information and it is up to you if you want to believe the latest news and let it affect your Forex investment decisions.



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This is especially applicable when you are investing with a currency that’s totally out of your business time-zone. For example, you are in US and your other currency is in Japanese Yen (JPY).



This type of trading is a little bit volatile since the news will never overlap. To avoid trouble in this type of trading, be sure to stick to the early news plan and follow your “educated instincts” through the day.





 

 

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