Few Factors That Affect Daily Trades

The Forex market is the most volatile market in the world.The price movement in the trading instrument is so high, it is quite impossible to make a prediction which is 100% right. There are many variables which you need to analyze prior to the executions of any trade. If you are thinking to join the industry, you need to have a clear idea about the reasons why the market is changing. This is why a trader must have to do both fundamental and technical analyses before making a trading decision. In this article, we are going to talk about certain factors that affect your daily trades.

Overseas market

As a currency trader, you need to keep in mind the time zone difference. Like the New York Stock Exchange starts at 9:30 a.m. every day, while the markets of Asia and Europe is finished or about to finish. So, when one market is opening and another one is closing, the market becomes much volatile. In this overlapping time, if one market is having a bad day, it will also affect the other market. If you want to earn more profit, you must need to attend the market in this period after doing proper research. This will help you to earn more when the market is more volatile. 

Economic data

The price of a currency depends on the progress of that country. If an announcement comes out related to the employment rate,it should tell us about the strength of a certain asset. So any economic news or announcement will have an effect on this market.As a result, you must need to consider this when you are in the trading business. Options trading in Australia is a very popular business, but few traders actually know how to take trades in an effective way. Unless you do the things in a strategic manner, you will always lose. Focus on the important market news so that you can take the best decision without having much problem.

Buying at open 

The market indeed becomes much more volatile when a market opens. You must indeed need a lot of market movements to earn from trading. But it can be a bad idea to trade when the market just opens. So, predicting market movement will not be easy and you might make the wrong prediction. But most of the buying and selling indeed happens during this starting period and this is why both buying and selling prices remain very higher than average at that time. So buying in the opening time of a market might affect your day trades.

Midday trading 

Impact of market sentiment usually drops off as all the major news and announcement is being released prior to the end of the day. So at this time, the stock‚Äôs price will be a lot cheaper or expensive, than the opening period of the market. You have to know that this can affect your entry and exit price.  People who have strong analytical skills can easily take advantage of such a market condition and get the best price to take trades in the major stock market.

Social media and blogs

There are lots of traders who follow some traders on social media and also like to read there blogs. If anyone says that he is going to buy a stock tomorrow, most of the novice traders will follow him. It can affect your trades both positively and negatively because as many traders going to buy that stock then the buyers might become stronger. But still, you should not take trades based on other people opinions.

There are many reasons for which market changes.If you can identify how they going to affect the market, trading will become very easy. So, we hope you will consider the described points while you are making any trading decision in the future.