In my last article, I’ve talked about the importance of managing forex marketinformation sources. After knowing how to manage the Forex market information source, what traders should do next is to take advantage of them. To be a successful forex trader, you must be sensitive enough to forex market information and know how to utilize them skillfully. Below are practical forex tips for you to make full use of the forex market information.
Forex tips No.1: be clear about the timeliness of forex market information
The first thing to utilize market information is to be clear about the timeliness of forex market information, or you will fall behind. There is a great deal of information that has already occurred and be responded by the market players. If you do not realize it and take the information as new in forex trading, you may go the wrong way.
Forex tips No.2: Identify whether the forex market information is true or not
Rumors do exist. You have to determine whether the market information you’re dealing with is fact or fiction, rumor or opinion. Rumors can occur minutes to several hours before a scheduled release of data. The rumors may cause some short-term trader action, and they can sometimes have a constant effect onmarket sentiment. However, it’s not easy to verify the truth in a decentralized market like spot forex. Therefore, you should have a well-rounded risk management plan to protect yourself from such rumors.
Forex tips No.3: Know where the Forex market information comes from
You should always ask yourself such question when referring to the information, because different people hold different opinions and some of them may be subjective. The more you know about the “reporter”, the better you will understand how accurate the market information is.
Forex tips No.4: Pay attention to the changes or revisions of some forex market information
Some market information may change or be revised as time goes. For example, assume that the U.S. economy is in a slump and January’s NFP figure decreases by 50,000, which is the number of jobs lost. It’s now February, and NFP is expected to decrease by another 35,000. But the incoming NFP actually decreases by only 12,000, which is totally unexpected. Not having known that January data was revised, you might have a negative reaction. So it’s essential to pay attention to the changes or revisions of some forex market information.
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