Before you rush to answer with yes, take a moment and make sure you do. I think one of the most evident cases that plenty of market participants do not understand economic data is the monthly NFP report.
You can tell how many cheer a headline figure of let's say 180K while unemployment dropped by 0.1% and claim the report was good, when in reality we saw a mediocre report which points to udnerlying issues in the labor market (this was just an example and not an actual report so please don't go looking for it). The headline fake on the NFP, as many pros call it, happen quite frequently as so many want a feel-good number.
In order to really understand what the report is saying you need to fully understand the report and dig much deeper which is something the majority don't feel like doing or don't understand how to do and what to look for. They rather rely on a report published on their favorite news channel. In my opinion, you need to understand economic reports if you want to become a successful trader.
You can tell how many cheer a headline figure of let's say 180K while unemployment dropped by 0.1% and claim the report was good, when in reality we saw a mediocre report which points to udnerlying issues in the labor market (this was just an example and not an actual report so please don't go looking for it). The headline fake on the NFP, as many pros call it, happen quite frequently as so many want a feel-good number.
In order to really understand what the report is saying you need to fully understand the report and dig much deeper which is something the majority don't feel like doing or don't understand how to do and what to look for. They rather rely on a report published on their favorite news channel. In my opinion, you need to understand economic reports if you want to become a successful trader.