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If you are following my articles for a while, You must have noticed. I always use the word ‘market fluctuations’ and this market fluctuation or market ups and down happens due to the big events or news that shakes the market either positively or negatively. In this article, I will show you How to use news in trading in Olymp Trade and How does news affect the market?.
How to use News in trading?
Multiple factors influence the market and one of them is news. news has a tremendous impact on the market and it can change the momentum of the same in seconds. when the news is positive about certain shares or country the stock price usually goes up and bulls get active. and vice versa when the news about a certain country or shares is negative the stock price usually goes down and sometimes even gets crashed with that bears get active or traders start selling their assets.
Types of news that impact the market
There are multiple news types of news that impact the market but the majority of them are:
When we get certain news about the positivity of the economy like an increase in GDP growth rate of a country it impacts the market positively and vice-versa when we get certain bad news about a country or company like the increase in the unemployment rate or increase in inflation it impacts the market negatively.
Some Economic news that impact the market are
- GDP growth rate
- Interest rates
- Retail sales
Financial news normally comes from a company. like If the financial figure of the company is better than the forecast a company’s share price usually goes up similarly If the company’s financial figure is negative then the forecast a company’s share price usually goes down.
Some Financial news that can impact the market are
- Financial growth
- New company CEO or change in an important post
- Launch of new products or payment methods
- Innovative Inventions & more
Political News like elections, revolution, and big political decisions impacts the market.
Some Political news that can impact the market are
- Big decisions & more
Unforeseen events like earthquakes, tsunamis, and Drought also impact the market negatively.
Trading with the news is one of the popular ways of trading. You need to buy stocks when you get positive news about a company or shares and vice versa sell shares according to your experience when you get a piece of negative news about a company or shares.
It is to be noted that, Market reaction due to a news release usually lasts about 30 minutes to 2 hours but sometimes it can last up to 3 – 4 days.
I hope you have found this article helpful. and do share your experience about the strategy and I would love to hear from you. Thank you 🙂