![]() Now you must be wondering that what leads to supply and demand of any company’s stock. And fluctuation in the supply and demand of stocks leads to such price movements. Further to this, there are several studies suggesting for high correlation on stock prices and the relevance and volume of news of any stock on any point in time.Īs you might be aware as of now that the prices of stocks move up and down every minute during the trading hour window. The news adds effectiveness to the stock market by increasing information distribution among traders. How news affects stocks price in general? It is not a wonder why it is an essential skill for any portfolio manager for their long-term performance. So, regardless of your investing horizon, you must learn to trade the news. While day traders usually trade the news several times in a trading session, longer-term investors may do so only occasionally. Thus, trading the news should also be an integral component of an investor investing strategy. However, even all kind of investors also benefits if they occasionally take a position based on the news analysis. Traders, whether day or swing mostly benefits from this. That trading on the news is only benefiting day traders or swing traders or long term investors too? This is but obvious to ask at the outset. As no matter what, if a piece of news that is an unexpected one can ruin your position if you don’t act as soon as it hit the floor. You must be sharp enough to identify the category in which any news falls. One-time news, in general, is adverse than favorable. Other abrupt events like any market developments on the economic or financial front like the threat of debt default by an indebted European nation etc. ![]() News such as sudden terrorist attacks or some geopolitical tension. Unexpected news or one-time news – Unexpected news includes events specific news. Similarly, economic data like inflation data releases and quarterly earnings reports from companies are other examples of recurring news. For instance, interest rate, repo and reverse repo rate announcements by the Reserve Bank of India. Periodic news or recurring news – Periodic news occurs at regular intervals. The news broadly falls into the following two categories from the trading perspective – News can be specific to a particular stock or that affects the broad market. News classification from day trading point of viewīefore proceeding further, let us discuss briefly this. News analysis, thus, is very crucial for those who which to be very successful in day trade. Trading in accordance with the occurrence of those events. A technique of making a profit by trading stock of a company just in time. So, technically, trading the news is a stock trading technique. Even then they make good profit with day trading by simply relying on the news to take their intraday trade decisions. It is a fact that there are numerous traders across the globe, who don’t understand fundamental or technical analysis. ![]() Buying-selling and vice versa of stocks on the same trading day before the market closes is intraday trading or day trading. So what day trading actually is? The answer is simple. News has a significant impact on intraday stock trading. Master news analysis – That will help you conquer day trade
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