KEY TOPICS TO FOLLOW WHEN TRADING THE NEWS

Trading with the news is a strategy that I bring up quite often; not just in articles but in conversations with other investors. The reason is relatively simple. At the end of the day, I have yet to find a strategy that is quite as accurate as this one. While I’ve found some that have come close, trading with the news seems to be the most consistent.

We’ve talked about the topic quite a bit here at Invest.com too! However, today, we’re going to delve a bit deeper into the topic. In particular, we’re going to talk about key topics that have a tendency to move the market.

TOPIC #1: CENTRAL BANK MOVES

If you’re into trading currency, one of the most important topics to follow is central banks around the world. At the end of the day, these banks control monetary policy, which is a major controlling factor in the values of currencies around the world.

Quite often, we see scheduled speeches and meetings from the central banks around the world. These are generally listed on economic calendars, which makes it very easy to schedule your trading day and plan accordingly around the event.

Because central banks largely control the fate of the currencies they represent, any statement made by one will lead to movements in the value of currencies. However, currencies aren’t the only asset class that will be effected. These statements largely have an effect on safe haven investments like gold and silver, and in some cases, larger announcements can have an effect on the market as a whole.

TOPIC #2: EARNINGS REPORTS

Earnings reports are a perfect topic to watch for those that are interested in trading securities. While the frequency of earnings reports released will depend on where in the world the company is and the securities laws of that region, all publicly traded companies will release them at least once per year, and in many cases quarterly.

When investing, investors are largely making their decisions based on outdated financial information. So, these earnings reports are a key piece of the data. When they are released, if the company meets or beats expectations, the stock that represents that company usually finds its way toward the top. On the other hand, if the company’s financial results miss analyst expectations, we could see some big declines.

TOPIC #3: OIL SUPPLIES

Oil is one of my favorite assets to trade because in many ways, it can be considered to be one of the most predictable financial assets in the world. At the end of the day, like most commodities, oil is largely at the mercy of supply and demand. This tells us that when supply is on the high side of the equation, prices fall while if demand is on the high side of he equation, prices rise.

With that said, we see several reports with regard to oil inventories around the world just about every week. These reports give a clear indication of where supply and demand lie surrounding the commodity. As a result, they tend to cause waves in not only the value of oil, but also the value of securities that operate in the oil and energy sector.

FINAL THOUGHTS

At the end of the day, trading with the news is a strategy is a strategy that I’ve had incredible success with. One of the biggest keys to being successful in the market with this strategy is choosing the right pieces of news, those pieces of news that are almost always going to move the market. By finding those opportunities and making smart decisions when the news breaks, you too may find success with this strategy!

This article was written for marketing purposes and does not constitute investment advice. The information in the article represents the general views of our experts and does not take into consideration the personal circumstances, investment experience or financial situation of any reader.