How to follow and use international trade news

Trading at the international markets directly depends on economic and political conditions in a particular country in the world. That is why one needs to monitor the news in order to make the right decisions at the currency or stock market.

Find your best source

There are dozens of different services publishing  financial news especially for traders. Simply subscribe to the appropriate newsletter or install an application in your phone and read fresh articles related to finance.

When dealing with the foreign exchange market, it is impossible to overestimate the importance of financial news. No wonder there is a concept of trading news at the currency market. Immediate reaction to a particular event in the economics of the USA or foreign countries can bring you substantial profit. It is important to learn how to quickly process information and make bold decisions. And of course, the first thing one should do is to find the best news service that will keep you informed of the latest trends.

This probably will be the most difficult task, as today there are dozens of similar programs, each of them has its advantages and disadvantages. As practice shows, it is all about the habit. Someone finds conventional news sites more convenient to use, others prefer to install news service programmes in their laptops and receive the latest news in pop-up windows. Some still read printed business articles and manage to make a lot of money out of it. This proves once again that it is not enough simply to get the information, you should use it wisely. This is the task of an entirely different level. In order to adjust your position at the foreign exchange market in accordance with the latest developments in the world of finance, it is necessary to learn how to use analytical tools, including a rather complex tool such as fundamental analysis.

Fortunately, today, in our digital age, being aware of the latest changes is not so difficult.
Fortunately, today, in our digital age, being aware of the latest changes is not so difficult.

Analyze and forecast

Forecasting supposes looking into the essence of the events and deduce the impact that they will cause. Any error is fraught with serious losses. Any correct prediction may turn you into the currency market legend from an unknown trader.

Naturally, not each trader possesses such forecasting skill. This is why most of them use third party analytics instead of speculating on their own. In order to make accurate predictions, you must have analytical thinking, know theoretical basis of economics, politics and international relations, be capable of finding connections between events, especially those seemingly unrelated to each other, etc. Apart from everything else, you must constantly monitor the latest developments in the world, and, what is more, devote the most of your working time to this analysis.

In short, in order to make correct predictions you should be completely wrapped into in the world of finance and have a lot of patience.

It will be even better, if you eventually fall in love with your new hobby, because without love to analytics and forecasting you will soon get tired of digging in your news feed. Do not surrender to despair if this already happened; you can always use services of analysts working in brokerages.

Reasons to follow the financial market news
Any trader can and should use information for profit. Let's find out why asking “how is the stock market?” is so important.

What is the financial market?

Any person who wishes to increase their capital will inevitably face the concept of the financial market. Securities are the most popular way of money investing, since they provide multiple profits and appear as a highly tradable product which can be quickly bought and sold, which is impossible with fixed assets, for example.
The key word here is the market. Once it is the market, there must be are sellers that offer a product and customers who buy this product. At the stock market, this product is securities. The stock market is another name for the securities market.
Securities are shares, bonds, warrants, notes, options, futures, shares (stocks).
The stock market is a mechanism for transfer of funds from one economic sector to another. It may be represented by the following example: there is a company that produces a specific product, and it has no money for continued manufacture. To get the money the company put its securities to the market. Another company, with possesses the necessary amount of money, buys these securities. This results distribution of capital between the enterprises and industries.

No matter what information comes out, bad or good, it creates more volatility at the market.
No matter what information comes out, bad or good, it creates more volatility at the market.

Why traders follow financial news?

Economic and financial news have a direct impact on the stock market, so traders should monitor them constantly. As they say, who owns the information, he owns the world. Different information affect the market in different ways. The share price may go up sharply because of good quarterly income reports, and may significantly drop because of the hurricane that destroyed the company’s production assets. That is why you should follow stock market news, if you do not want to wake up one “fine” morning and see that your profitable position became tragically losing after some important information appeared at the market.
Financial news are important because they:
1. Inform the market. In other words, good news boost increased demand for the share, and the bad news increase offer. It is believed that all the significant short-term fluctuations at the market happen purely because of the news.
2. Create volatility. We will not be able to make a profit if the price is stable. The news at the market, different from the expectations of stock gamblers, create stirring and therefore volatility.
3. Limit the risk. Most of the stock news are scheduled so you know when fresh information will come out, what it will be about, and what its impact on the market will be. Thus, one can prepare for it and, if necessary, limit their risks.

Forecasts at the gold stock market

The volatility of gold quotations

It will not be a problem to find a buyer if you want to sell gold, and, vice versa, a buyer will always find as much gold as needed. Every day is a huge number gold purchases are carried out at the market, due to the high volatility of stock exchange quotations for the metal. Within a single trading session, the price for gold can change at hundreds of points, so buying or selling binary options for gold, a trader can make a lot of money. In addition, gold price is more predictable than, currency rates for example. Traders point out that this asset follows the trend (which is, however, accompanied by high volatility) and shows sensitiveness to the news background.

Technical analysis

The main task of the trader is to predict the fluctuations of prices correctly. If you make bargains at random, there is a high probability that you lose the funds on deposit.
There are several methods to forecast the changes in the price for gold, which may be used in parallel, these are: technical analysis and monitoring of macroeconomic indicators. Technical analysis is more or less clear, like any other asset, gold prices are analyzed by using the graph reflecting the fluctuation of quotations, where certain patterns and shapes maybe easily tracked out.
However, the most accurate predictions can be carried out after analyzing macroeconomic indicators, as well as monitoring economy world news.

Monitoring world news makes a successful businessman.
Monitoring world news makes a successful businessman.

Macroeconomic factors

Some factors having influence on the gold quotations:

1. Demand. The more buyers want to buy gold, the higher the price rises. In addition, gold has long been a reserve asset. When the economy is unstable, investors transfer money into gold to save money from depreciation.

2. Gold production. Gold is a non-renewable resource, therefore, the less the amount of gold is offered, the higher the price for gold is. However, we may face a situation when gold is offered more than consumed. For example, one of the countries (large gold consumers) ceases to make purchases (for example, because of a military conflict or economic instability). As a result, gold gets cheaper, as production remains at the same level, and the companies owning the mines must sell this gold anyway.

3. Degree of economic stability in gold-consuming countries.
Now let’s consider some examples of how the news of business section influence the macroeconomic factors and how to make a profit from them.
For example, major media outlets publish reports that the stock market of a large country subsided significantly. Before this moment a stable rising trend in gold could be observed. Accordingly, some part of the stock market will be converted into gold, so the metal will rise in price. We know already that gold is sensitive to the news and tends to follow the trend, so you can buy binary options.
Consider another example. Reports are published that gold mining is on the verge of profitability at the current price, and the companies plan to cut production. If this trend is vertical we can buy options, because the decline in production is accompanied by the rise of quotations, if the trend falls, we should sell, as the decline in production output can be caused by the decline in demand.
Thus, gold trading through binary options may become a lucrative employment, as it allows to earn no matter if the price rises or falls.