4 Factors That Affect Daily Trades
The Forex market is one of the most volatile markets in the world.There are many variables that make the market change every second. You will never find that the market strand still. When you are in the trading profession, you can earn from trades only when the market changing its position and according to that investors enter or exit the market. According to traders’ trading time frame preference, they make entries and keep their position open for days, weeks, or months. How long a trader going to keep his position open, depends on the market movements? Traders in the Mena region always set a certain take profit level and stop loss level. As soon as the market hits those levels that trade closes automatically. In this article, we are going to talk about a few factors which affect market movements daily.
In the trading market, you can trade for 24 hours daily without the weekend, and in this 24-hour market is not always move at the same speed. A trader can able to trade 24 hours because in one zone market closes and at the same time in another zone market opens and there is also some time when markets of two-zone remain open at the same time. When the market opens in the same place and the overlapping period market remains highly volatile and in most of the time traders make entry into or exit from the market. Because if in one zone market closes in a bad or good condition, this effect will be seem in the next market that opens. For example, the New York Exchange opens at 9:30 a.m. daily and at that time the equity markets of Asia and Europe shut down for that day. So the trend which is going during Asia and Europe market closes, that trend will remain during the starting to New York session. Visit the Saxo Bank website and learn more about the trading environment and sessions.
Fundamental analysis mostly depend on the economic reports and financial announcement and during this period market moves in such a way that no one can predict. As an example, if Europe announces that they are going to change their interest rates from tomorrow, most of the investors may shift their investment if they find a better option than Europe. So this type of news is published all day and not all the news affects the market in the same way but you just need to identify any effects the news has had.
Taking a position at the starting of market
Most of the trader tries to open or close their position at the opening period of the market because in this period market of your zone may be intersecting another market. So in this period time market might show some fake trends because the effect of another market may be affecting the market. In this time fake trend or retracement may occur which will not remain for long. So,trading in this period will not be a good idea rather than waiting for sometimes to observe the market before making a decision will be a better option.
Social media and blog
Many good traders use social media and write blogs about the market and these trading blogs sometimes have a greater effect on the market. If a trader who is followed by lots of other traders and he writes a blog about the fact he is going to go for a buy-in EURGBP pair, most of the traders may think that they will also go for a buy on that pair and this might affect the market greatly. So don’t follow someone blindly rather instead of following your research and analysis before making a decision.
So this is the most common thing that affects the trading market and must need to consider this thing before making trading decisions. Always try to take your time doing your analysis by considering all the variables.