How to trade news?

19.05.2022
145
стратегии торговли на новостях

Every day, people read the news feed that appears on the World Wide Web. However, none of them thinks that you can make money based on the information in these publications. You will learn exactly how this happens from our article.

How to make money on the news?

The term “news trading” refers to the method by which a trader must make the maximum number of transactions based on knowledge of the news feed. It should also be understood that not all world events during the day can affect the growth or decline of economic indicators

Novelties in the financial markets can be divided into the following categories:

  • non-standard;
  • template.

The first group includes articles that can be published at any time. They do not have a specific format and can carry unexpected information for many stock market players. Most often, they contain information about the introduction of new tariffs and duties, a statement from large corporations, government agencies and more.

The second category includes messages written in a clear format, the time of their publication is set in advance. These articles usually publish information on macroeconomic indicators such as unemployment, GDP, country and company ratings, and so on. The economies of the United States and China play a key role in global and domestic markets. European countries have the least influence.

What are the strategies for trading news?

To start this activity a person will need not only time but also financial investment. The news segment has already been studied by trading robots, which can open and close positions in just a few seconds according to a pre-prepared algorithm.

To compete well, you need to do the following:

  • develop your own unique program;
  • find quick access to the stock exchange;
  • receive messages from the first sources – for this you need to find verified news agencies.

We encourage you to visit the Bloomberg website. On this resource, the most important news is rated 1-3, and the figure is three, there are articles that are worth reading and in the first place.

How to trade on the news?

It should be noted that macroeconomic indicators do not have a long-term effect, so on the basis of this information it is possible to conclude agreements only for a short time. On average about 7 minutes. And it is desirable to carry out the activity by means of robots, instead of independently.

It should also be understood that the exchange reacts not so much to the indicators as to their deviations from the forecasts of think tanks. If analysts expected unemployment in the country to fall to 3.7%, but in fact it fell by 4.5%, the market will change negatively, because in fact everything turned out worse.

The stronger the indicators, the more changes will take place in the market.

 How to make money on the news?

As for non-standard reports, they have long and serious consequences, so they should not be ignored. This type of publication can be divided into the following categories:

  • natural disasters;
  • man-made disasters;
  • activities of state bodies;
  • statements of famous people or company executives.

News trading: strategy

When you study the next publication, you need to pay attention to the original source. If an influential person or a specific organization is mentioned, the information is likely to be reliable. If the source is anonymous, the news becomes just a rumor. Of course, due to rumors in the market, too, may be minor changes, but in case of refutation or lack of confirmation, the figures will return to starting positions.

After interpretation of the received information it is necessary to conclude the first operation with the chosen financial instrument according to the prepared algorithm.

Analyze the information that you think there may be changes in the market and apply to close the deal. This action will help to record the income received.

Do not forget about the possible risks. Be sure to use a stop loss. This signal will limit the damage if your assumption turns out to be incorrect.

Which news is better to trade on?

You need to be trained to learn how to trade the news. To begin, improve your English. You need to understand the news in a foreign language or find a good translator online. Many important publications are posted on the Internet in English.

To get instant access to primary sources, you need to take care of setting up notifications. You also need to decide on the financial instruments you plan to work with. The player of the exchange must think in advance about his actions in case of publication of any news.

How to make money on news for beginners?

Exchange members can enter into information-based transactions to make money on the news. Individual investors are advised to use information from non-standard publications, as it is almost impossible to recognize trade works in template articles.

To be successful in this area, you need to be the first to read the reports, interpret them quickly, and follow a pre-designed algorithm.

Preparatory work includes learning English, setting up an incoming news feed, script development.

Working on the stock market can increase your capital several times, but for this a novice trader needs to find the most suitable strategy. First, you can try the method of earning, which is based on the study of news articles.

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