In this article, you will learn about the differences between investment news and trading news, and the type of news that might suit your financial goals. We will cover the following topics:
- stock market news frequency
- The timing and frequency of currency and commodity news
- Short, medium and long term prospects
Investment news or trading news, which one to choose? They are often grouped together, but there are significant differences between them in terms of timing, frequency, subject matter, and financial preferences. Once you become aware of these differences, you will know more clearly when to consider each type of information in your decision-making process.
When business results matter
If you are primarily interested in tracking company results and buying or selling shares based on company fundamentals and performance, you might prefer investment news (or stock market).
Stock market news is divided into quarterly, semi-annual and annual reports for large-cap listed companies. Earnings release periods occur during the first six weeks of each quarter and, depending on the results, can have a significant impact on investor sentiment and market trends.
If corporate results are better than expected, investors tend to restore confidence and improve sentiment, often boosting the performance of the industry or even the entire stock market. Positive moods can be contagious and spread from one region to another, as investors rely on the best performance of the largest and most important multinational corporations.
If earnings season yields negative results, a sell-off may be imminent, with all the implications of a bear market: falling stock prices and negative sentiment.
How far in advance should you plan?
Investment news comes at predictable times in the calendar year and business results can be good, bad or indifferent, but many investors take a long look at the stocks in their portfolios and hold onto their current assets. , regardless of the information. Others have a medium-term view and can adjust their portfolio according to their quarterly or semi-annual forecasts.
During earnings season, market trends can differ from the general economic situation. Even though the broader economy is in a recession, investors can focus on earnings and their effects on their portfolios. This is not the case in the trading markets, where most of the time economic indicators have an impact.
When prices and the economy are most important
If you are naturally drawn to news about commodity prices and currency values, you may prefer to follow trading news in the form of economic benchmarks. Economic performance analysis is often included in trading news, just for background information.
Economic indicators are often short-term, such as monthly employment updates. Traders take this information into account when making trading decisions, which often influence the spot prices of commodities such as crude oil or gold and the value of currency pairs.
Some trading patterns are based on the short-term effects of economic updates, such as day trading and scalping. The nature of trading information fits into these patterns, as it can lead to short-term price changes when some or all of the global trading community’s estimated 10 million decisions are made based on these.
How do trading and investing styles come together?
Is there a common ground between methods of trading and investing? Over the past few years, with the increasing popularity of stocks in the online market, the financial instrument CFD (Contract for Difference) has become a way to trade the price movements of stocks and indices. Essentially, CFDs can be used during upward or downward price trends caused by important events. CFDs can be traded on many underlying assets, including stock indices and stocks.
When risk management is most important
Care must be taken when using trading and investing news. They are an influential source of information, but it would be unwise to rely on them 100% when there are other sources that can also support your decision making. These include technical analysis, analyst opinions and financial advice from qualified professionals.
To conclude this article, trading and investing news differs in three important respects: whether the news comes from companies or from economic standards; The underlying assets they affect, the long-term or short-term approaches.
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This content does not and in no way should be construed as containing investment advice or recommendations or an offer or solicitation for trading in financial instruments. Please note that this marketing communication is not a reliable indicator of any current or future performance, as conditions may change over time. Before making any investment decision, you should seek the advice of independent financial advisors to ensure that you fully understand the risks involved.