Trading News Events
News trading involves buying and selling stocks, currencies, and other financial instruments based on market reactions to economic reports or external events. Significant news, such as economic data releases, can lead to sharp and temporary market shifts, offering potential trading opportunities. Events that might cause a company’s share price to fluctuate include earnings reports, management changes, merger rumours, and similar developments.
While news trading is allowed, be aware of the associated risks:
- Market Conditions: Liquidity and volatility can vary greatly during news events, potentially impacting trading performance.