We live in the so-called age of information, where knowledge is a valuable commodity and arguably more accessible than ever before.
Interestingly, knowledge is considered to be power in the forex trading market, and one that can help to drive successful and informed decision making (especially when deployed in line with practical trading experience and a keen sense of determinism).
In this post, we’ll look at how you can stay informed as a forex trader, by appraising the main channels that provide news and relevant insight on a regular basis.
1. Reading News And Market Insight
If you use an online trading platform, the chances are that you’ll find a comprehensive (and real-time) news feed somewhere on the site.
This can be an important tool for traders, who can track news stories and developments in real-time and adjust their strategies as and when required. Remember, the forex market is heavily influenced by macroeconomic and geopolitical developments, and monitoring these closely is highly beneficial for traders over an extended period of time.
On a similar note, such platforms tend to feature a blog with daily market analysis that has been carried out by experts.
Often, this creates context around breaking news stories and developments as they unfold, helping you to trade them effectively and make more insightful decisions.
2. Use Social Trading Platforms And Forums To Your Advantage
You may also have heard of social trading, which creates a template where investors are able to follow successful exponents of the art and mirror their trades as closely as they choose.
This has become a seminal trend in the volatile and fast-moving forex market, particularly as technologies such as big data and AI have combined to help collate data from disorganised sources (such as social media) and lay the foundation for automated trades.
The same principle can apply to reputable trading forums, where forex investors often gather and share information about specific assets, currency pairings and the trends that are currently impacting on valuations.
While this sort of channel is far more informal than social trading networks, it can still be a source of valuable data across a wide range of marketplaces.
3. Testing New And Experimental Strategies
If you have an existing online trading platform, you can also use this to help test your strategies and create the ideal plan to capitalise on the real-time marketplace.
More specifically, you can leverage an online demo account to bridge the gap between theoretical learning and practical experience, as you gain access to a simulated, real-time market without having to risk your hard-earned capital.
Instead, you’ll use fake currency and capital holdings to implement your strategy and open positions, creating the ideal environment for risk-free experimentation and far greater potential for long-term success.
You can usually use demo accounts for a period of between three and six months, allowing ample time to test even the most carefully-laid strategies and achieve success. You can also use this opportunity to tweak your strategies and optimise your chances of success when you start trading forex for real!