Markets are influenced by multiple factors.
The major ones are,
- Political factors
News can change a market situation in a moment. If the news is positive, currency rates or stock prices usually go up. If the news is negative, they go down. That’s why news trading has two sides.
News Trading : which news should a trader follow?
The first point of interest is economic releases, or economic news. Which are main part of news trading. These are publications of various economic reports and statistics, such as ;
- Gross Domestic Product
- Unemployment, inflation
- Retail sales, and other data.
Financial news represented by financial reports from companies largely affect stock prices. If financial figures are better than the forecast, a company’s share price usually goes up. If a company’s financial figures are worse than the forecast, its shares decrease in value.
A country’s health is affected by political events elections, revolutions, impeachments, death of political leaders, and other events that may cause political instability. So, it’s important to follow political news.
Some unexpected events such as terrorist attacks or natural disasters like earthquakes, tsunamis or droughts influence markets too.
Keep in mind that the market’s reaction to a news release usually lasts from min up to hours, but sometimes it can last up to three to four days. You can follow IQ Option smart news feed that accumulates news from multiple sources in the Market Analysis section on the left hand side panel.
In order not to miss the most important releases, scan an economic calendar. On IQ Option platform, the economic calendars are located in the Market Analysis section on the left-hand side panel.
We wish you successful trading.