Tuesday, August 5, 2014

News Streams

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When looking for online forex news providers try to stay with the classic ones, the famous ones, like Reuters, Dow Jones, etc. the one that every broker and/or trading platform that is serious about trading have a contract with.

These news agencies have contracts with different brokers and institutional investors, and sometimes, if the economic news and/or research is of their own, they can, based on a subscription, make the news available to subscribers earlier with five minutes let's say than to the rest of the market.

If you think five minutes is not enough to make a trading decision or even a trade, try to think again to those high frequency trading algorithms that are trading virtually thousands of trades per minute, or even more. I read something interesting some time ago regarding a new cable that it was being laid down on the bottom of the Atlantic Ocean connecting London to New York and the expected result was an improving in the speed of communication between the two financial centers by seven milliseconds. Yes, seven milliseconds.

Well, if that is enough to justify the investment of such a grand scale as a cable from London to New York, then you have your answer as why the online forex news are so important.

There are not only people that are trading anymore, as a matter of fact we may say that there are fewer and fewer people that are actually trading. I would be interested to see what is the daily percentage, for example, of the trades taken by humans and the ones being taken by machines. I am sure machines outnumber humans on these chapters, because they are just doing what they are programed to do, no feelings attached what so ever.

Is this good or bad for trading? Well, definitely markets will start to look more mechanical as the human touch is missing more and more, but this makes trading even more interesting as in this arena there are tougher conditions by day and in order to be profitable on a constant basis you need to be able to outrun those conditions too.

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