UK New Car Sales Fall 1.6 Percent In January
UK New Car Sales Fall 1.6 Percent In January
Today, the number of cars bought, especially new cars, starts to fall for a number of reasons. Firstly, for many people, it is easier to rent or buy an apartment ...

The Importance of the Financial News

Do you need to follow the news to become a good trader? At first glance, news and trade are inseparable. At least, such an impression among traders try to create the television channels that show finance news all over the world. To trade effectively, we need to know what is happening in the stock market, right?

In fact, many trading fields are very loosely connected with the need to keep abreast of the news. Both with long-term and short-term trading, viewing business news channels works more against the trader than in his favor. CNBC or another channel is sometimes worth a look, but not in order to apply the information obtained in your trading. You just need to keep track of when you plan to release important ads on the market in order to refrain from trading in such periods of time and allow volatility to return to normal.

And what exactly will be the meaning of the published stock market news, does not matter for the trader. Consider several reasons why tracking stock news today and trying to use it in trading can be considered counterproductive. The following considerations are regularly discussed on the Internet, and many traders point out that tracking the news does not help them make money, but only takes time.

Reaction to the News Is Unpredictable

First of all, you need to understand that we can assume what the content of the free financial news will be, but it is extremely difficult to predict what the market will do in response to the appearance of this information. At least, this cannot be foreseen with a sufficient degree of confidence. For example, gold is not always insurance against inflation. Indicators of the company’s report do not determine the movement of prices for its shares. And economic news will not help predict the price of shares. At least in the long run.

The market always goes up and down. It would do it even with no latest financial news at all. This suggests that today’s financial news sometimes just coincides with the market Рthey appear at the moment when the market is moving. There is no causal link, in which the news would dictate to the market where to move for a long period of time. It can be noted that the bond market is moving before the announcement of the new interest rate, and the stock market is moving before the release of stock market news today.