Bitcoin News Trading is the Best Strategy for New Traders
Trading the digital currency can become a profitable proposition if you have access to the latest and updated Bitcoin news in your inbox. Needless to say there are dozens of trading methods that influence the decision making of traders; however, Bitcoin news trading is perhaps the least technical of all the expert advisor strategies on the market today.
Notwithstanding, most of the Bitcoin traders base their profit on a set of mathematical rules that analyze past price action to forecast the future behavior of the digital currency; however, with Bitcoin news there is no such thing. Here you as a trader make decisions based on what is happening in the Bitcoin ecosystem and what impact it can have on the price.
Some traders and even experts believe that the big assumption is that as there is the Efficient Markets Hypothesis where it is believed that all the information available in the market is already incorporated in the price.
The Role of Bitcoin News in Competitive Bitcoin Trading
Bitcoin news trading aims to make a profit by forecasting how the price will behave just after a major piece of news affecting currency markets is released or some major event takes place in the Bitcoin ecosystem. Needless to say it aims to profit from the few minutes the information takes to incorporate itself in the price.
If you have been trading the digital currency for some time, you must have observed that the main difference between a Bitcoin news trading strategy and the rest of the technical analysis strategies is that technical analysis requires no knowledge of the underlying i.e. fundamental price drivers. However, with Bitcoin news the things are quite opposite to that.
Economic Events and the Impact on the Exchange Rate of Bitcoin
When it comes to a Bitcoin news trading strategy some basic knowledge is requited on what the data means in relation to the underlying market. Needless to say the great thing about Bitcoin news trading is that you can set stop losses very close to the currency market rate, and hence avoid large losses.
Experts and seasoned traders believe and practice disciplined trading where they follow economic calendars on the web every morning. They open up their calendar, set it to match the local time zone and mark on the charting software the time when the news releases occur and make decisions based on the events.
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