News Trading strategy is based on an analysis of news related to certain stock (or any other financial instrument). The good news usually means that stock prices will rise, but the bad news means that the stock price will fall. The rule is very simple. Sell if you have bad news, and buy if they have good news
There is a wide selection of news that can affect certain stocks: An announcement of corporate earnings, changes in management, rumors of a merger, the results of a rival company, or even sports news. It's hard to keep track of all news, so the investor is usually focused on certain types of capital. Even that is difficult to handle, so it is usually necessary to focus on a few stocks.
All the news have some degree točnosti.Glasine are usually less accurate, the reports are very accurate. Even the reports can be inaccurate, but it is less likely because someone is May have to face sanctions if they are hiding something.
Also, all news can be more or less important. For example, the invention of the automobile is very important for railway companies, and the invention of computers is not so important for the undertaker.
The third aspect of the news is how often you can get. For example, you can always find news about anything, especially on the Internet. On the other hand, the financial statements are available in three months.
Fourth aspect of the news is how fast you can get them. This is a very important aspect, because when you see the news, it's usually too late to do something. So if you have bad news, stock prices have fallen. To follow this strategy should be almost always online looking for news.
