Forex... Investor sentiments....
By ahgong
@ahgong (10064)
Singapore
May 25, 2009 7:48pm CST
I read in books and in forums, everything about forex is about volume and investor sentiments.
And to be a good investor, we have to be able to understand both volume and investor sentiments in order to make a more intelligent guess at what the general trend for the day would be. Whether the currency pair will be increasing in value or not, will depend on a combination of these two, volume and investor sentiments.
Volume is easy to see. You just need to look at the charts, and then do some simple TA, you will be able to see which currency pair has the highest volume and which currency moved the greatest in a particular period of time.
The problem comes when I try to understand the investor sentiments.
News reports are one source of good information where one can see or "feel" the investor sentiments.
Question is, how do you interpret the news that is presented to you to know what that "feel" is?
How do you read a news report and see if investor sentiments for the day would be a buy or a sell?
Like for example, over the weekend, we read reports of US dollar weakening. In my mind, that would mean that more people will sell the US dollar in favor of the quoted currency. Sell low, buy lower. That is a Short entry. Right?
But when you enter the market, you see an up ward trend instead. People are generally buying US dollars instead.
Anyone here uses the news to see or "feel" the market?
How do you interpret the news to see what other investors are feeling?
Please advise.
1 person likes this
1 response
@kun2349 (23381)
• Singapore
26 May 09
Another confusing thing about forex.. haha =D Well, i'm not into forex and thus i cant help u much.. When it comes to investments, always follow your head and not your heart.. THere are times whereby there's an instinct telling u what to buy, and that shall be your feel..
Feel is something u get when u read about certain articles or news that grab your attention immediately and straight away, u know what to buy.. THis is what i called feel, because there are no points or charts to study at, and yet u have decided what to buy ^_^
Dun worry about your instinct and feel being different from others, because it does not come often.. hehe ^_^ As for your example, alot depends on what u think 'is not right' and follow it that way ^_^