In the information overload age that we live in, it is simple to get overwhelmed with the widespread propagation of headlines. Moreover, in the midst of the coronavirus pandemic, the spectrum of storylines make it hard to hone in on the relevant news you need for your trades.
When the U.S. Senate approved the seismic stimulus package for the President to sign, there was tremendous speculation regarding its implications on various facets of the economy.
News agencies were quick in their coverage of how the large-scale injection of capital would positively aid American workers and small businesses, as well as other industries in the economy. This same level of coverage, however, was notably absent regarding the impact on any market. Upon hearing the news, savvy traders would have been able to piece together the fact that a) the requisite signing of the package into effect by President Trump was, for all intents and purposes, a formality and b) the immediate impact of the package on U.S. currency would be a decline.
From the graphic, it is evident that the value of the U.S. Dollar receded sharply following the announcement of the stimulus package. Traders, who hypothetically jumped on the currency on March 9th or 10th, looking to act upon news that the package was signed would weigh the short-term benefit of cashing in versus the long-term benefit of staying the course.
The drastic decline in the value of the currency shortly after the announcement of the package rendered any decision a trader would make as a loss relative to their holdings just hours prior. Also, with the abundance of news, storylines, and information arising from the coronavirus pandemic, many traders may have been focusing their attention on other markets’ news (like currency news from other countries and oil disputes between Saudi Arabia and Russia) or other coronavirus headlines, thus losing track of the information they would value.
Additionally, tracking specific storylines is tiring and is easy to get distracted from, and not all traders may have experience using social media platforms to find relevant headlines. In an ideal world, they would be able to ascertain that eventuality of the stimulus package multiple days in advance, and as a result, they could realize gains before the stimulus package forces the value of the dollar down. However, given the litany of storylines from coronavirus, that is a large undertaking alone. But luckily, you are not alone.
At Better Trader, we are cognizant of the factors you have to consider when trading. This is why we designed our Voice Assistant feature: an incredibly simple and useful tool that will read out tweets from accounts you follow, alerts from upcoming events, and trade ideas on potential opportunities in the market.
The combination of our Voice Assistant and Twitter Scanner™ as well as other features like our economic calendar and Trade Ideas will revolutionize how you trade.
“BetterTrader keeps me abreast with news releases so I don’t miss them if I forget about a scheduled release. It also helps to prevent me from getting caught off-guard by sudden market movements!”Jeni Rob, Active Trader
Keeping up to date with market movements and news in the 21st Century no longer entails staring at your screen all day in hopes of making a profitable trade. Upgrade your trading experience today with BetterTrader to keep up with even the smallest events that can have the biggest impacts.