News Trading For Stock Investors
Stock trading is one of the most popular forms of investment in the history of the financial markets. Through most of that period, investors have been using buy and hold strategies that tend to benefit from the generally positive tone that marks the history of price activity in equities. This is, of course, a great idea as stocks rise in value over most years and this type of approach has been one of the most profitable strategies in the history of the financial markets. But it should also be understood that there are other, more modern, approaches to trading in the financial markets.
These approaches involve shorter-term techniques that can make it easier to ride all of the peaks and troughs that are found in the market price of any asset. One of the best examples here can be found in news trading, which offers traders the opportunity to find new trends as they are only starting to develop.
Reputable News Sources
The first step in any news trading method is to find reputable sources for market news. These releases must be made public on time and made easy to access by active traders. In my own trading, I get most of my market information from FiboGroup, which offers access to market calendars that are relevant for a number of different asset classes. It is critically important that you have the right information at the right time when you are looking to start news trading. Without this, you would place a trade in the wrong direction and this would create major losses if market volatility is increasing at the same time.
When dealing with stocks, the most important news releases tend to be quarterly earnings releases. These releases will generally quote the company’s ability to generate revenue over the preceding quarter. These figures are usually quoted in terms of the number of shares that are currently available in the market. So you will generally see headlines that say something like “XYZ company reported per-share earnings of 23 cents.”
When these releases are seen, investors are generally looking for an indication that the results are significantly above or below expectations. When this occurs, massive moves can be seen and this is a scenario that can generate significant profits. These are the scenarios that tend to have the best outcome as the rest of the market will quickly be looking to either buy or sell a certain stock.