Did You Know, Can Issues Move the Forex Market?
Ever heard of quotes “buy on the rumors, sell on the news” ?. If ever, can you practice it? My advice should not be put into practice, because many things need to be considered. Especially in making decisions to buy or sell.
But it is true that the current market, especially the capital market, and the forex market are moving fast. The movement follows the rumors that appeared on the market. In Dow Theory it even mentions “market discount everything”. The meaning of more or less the current price on the market has reflected future expectations.
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Rumors do have their own place in influencing stock price movements and other investment instruments. You can see the influence of rumors when the peak of the financial crisis occurred. Hundreds of points can easily disappear once the issue of banking and economic reports appears. Anything can develop into current issues, starting from company performance, financial reports, economic reports. And up to how someone’s condition is related to the world of finance and investment.
Not only celebrities who are busy with gossip through infotainment, in the world of finance and investment the same thing applies. Although the mechanism and contents are different. Normally in the world of celebrities, issues or gossip can make the celebrity more famous. Or even so his fame dropped. In fact there are parties who deliberately make gossip and certain issues to make films, music albums, and others to become more famous when released.
With more or less the same principle, this also applies in the financial world as in the forex market. Media is the most important role holder. Media giants such as Bloomberg, Reuters, Financial Times, Forbes, and Wall Street.
The journal normally becomes the main source of world issues. Through trusted sources, these media often surprise the market, sometimes good and often bad. The issue that is raised normally depends on the general conditions that are happening. For example, in a financial crisis like this, many issues about banking are emerging. There are positive ones and some have negative impacts.
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Well, for them, the fastest way to convey this issue is through the internet, besides television, of course. And that means we have to “browse” frequently to their website. It’s not just ordinary browsing that we have to do, but we also have to have the ability to identify the news. Of course which news is an issue that will influence market movements.
First come, first serve
If it’s already like this, it means we as market participants and investors must have speed. Of course speed in finding issues that will have a big influence on market movements. What needs to be done is actually simple, lots of viewing to the television station. Like CNBC or Bloomberg TV for global scale, and maybe broadcast TV on a domestic scale. Besides that, don’t forget the websites from the news media above. And more comfortable now because there are enough gadgets available for us to be able to check the news media websites above. If we are already fast enough in seeing the news that develops in the market. Next we need a deeper capture of an issue.
Need further research on an issue.
When an issue arises, the form can vary. There are reports, only research, or even forward estimates that are full of calculations. Normally, if a new issue arises, only by looking at the title can we conclude the effect will be negative or positive towards the market. But along with the increasing number of market participants who read this issue, of course something is needed. What is needed is more in-depth research on the impact of the issue. In addition, what is needed is about the possibility of whether or not the issue is true.
The term, if the issue starts to be digested by the market, the impact on market movements could be weakened, becoming ineffective or even getting stronger. Depending on the results of “digestion” many market participants. There’s nothing wrong with giving a little attention to the gossip circulating in the market. If we can find out more quickly about the issues that develop in the market than others, maybe we will have little advantage in making a buying or selling decision. One thing that needs to be considered before we “sell or buy on the rumors”, that is, never swallow a whole issue that just appeared. Try to do a little research and small research first.