News Traders
AAA
  1. Introduction to Stock Trader Types
  2. Stock Traders’ vs. Stock Investors' Roles in the Marketplace
  3. Decision-Making Methods: Informed, Uninformed, Intuitive
  4. Informed Traders: Fundamental Traders, Technical Traders
  5. Swing Traders
  6. Buy and Hold Traders
  7. Value Traders
  8. Trend Traders
  9. KISS Traders
  10. Momentum Traders
  11. Range-bound Traders - Break-out Traders - Channel Traders
  12. Options Traders
  13. Options Seller Traders
  14. Day Traders
  15. Pattern Day Traders
  16. Intra-Day Traders
  17. Intra-Day Scalp Traders
  18. Contrarian Traders
  19. Active and Passive Traders
  20. Futures Traders
  21. Forex Traders
  22. Online Stock Traders
  23. Pivot Traders
  24. News Traders
  25. Noise Traders
  26. Sentiment-Oriented Technical Traders
  27. Intuitive Traders
  28. Price Action Traders
  29. Price Traders
  30. Detrimental Traders
  31. Unsuccessful Types of Stock Traders
  32. Conclusion

News Traders

Market news is the communication of selected information on current events which is presented by print, broadcast, Internet, or word of mouth to a third party or mass audience.

Trading the news is a technique to trade equities, currencies and other financial instruments on the financial markets. Therefore trading news releases provide a significant tool for news traders. Economic news reports often spur strong short-term moves in the markets, which may create trading opportunities for traders. A news trader is looking for announcements about corporate profits, a change in management, rumors of a merger, which are all events that can cause a company's share price to move wildly up or down. Interest rates, unemployment and export rates, or the central bank's policy shifts, can cause a major change of an exchange rate.

Etiquette of news reporting

News organizations are often expected to aim for objectivity; reporters claim to try to cover all sides of an issue without bias, as compared to commentators or analysts, who provide opinion or personal point-of-view.

Newsworthiness is defined as a subject having sufficient relevance to the public or a special audience to warrant press attention or coverage.

In some countries and at some points in history, what news media and the public have considered "newsworthy" has met different definitions, such as the notion of news values.

With the advent of the Digital Age everything we thought we once knew about journalism needs to be rethought. Today the work of journalism can be done from anywhere. It requires no more than a reporter and a laptop.

There are many considerations when market news is involved:

  1. The reader and writer interpretation,
  2. The distinction and reliability of tweet, blog post, newspaper story, magazine article, and book.
  3. Professional or amateur input to market news items and a variety of “pro-am” relationships which have emerged.
  4. The boundaries delineating for-profit, public, and non-profit media have become misconstrued at times, and the cooperation across these models of financing has developed badly.
  5. Within commercial news organizations, the line between the news room and the business office is questionable,
  6. The line between old media and new media has blurred, practically beyond recognition.

These alterations inevitably have fundamental ramifications for the contemporary ecology of news. The boundaries of journalism, which just a few years ago seemed relatively clear, and permanent, have become less distinct, while potentially the foundation of progress even as it is the source of risk, has given rise to a new set of journalistic principles and practices to survive the never-ending change encountered with modern technology!

It is indeed complex, but it seems to be the future.

News trading methodology

Trading decisions based on news developments are nothing new. Whether the market-moving news arrives by boat, carrier pigeon or Blackberry, traders have always been eager to be the first to exploit and act on information that may impact a given market.

Yet now news is only new for a fraction of a second. Algorithms and rules-based engines filter text as it appears online, identify its underlying meaning, assess its importance and then - when warranted - execute trades based on it. All this occurs in a matter of milliseconds - ideally, a thousandth or two of a second before competing traders' algorithms do so.

At the same time, the definition of market news as it applies to trading markets is changing as well. In the age of Facebook, Twitter and social networks, we are seeing many new and different kinds of data sources that can be analyzed and mined for tradable insights, which in turn can be turned into machine-readable text or numbers and assessed for value by trading algorithms.

News trader

From the development of news to market news, we have the emergence of the “news trader.”

A news trader is a trader or investor who makes trading or investing decisions based on market news announcements. Economic reports and other news can have a short-lived effect on particular markets. News traders try to profit by predicting how a market will respond to particular news.

The old saying “buy the rumor, sell the news” means that rumors have one effect on a particular trading instrument’s price movement, and news can have an opposite effect.

News traders rely on short-term reactions to market news to drive the market in a particular direction. News traders can look at historical data to predict how future news can affect prices. By becoming familiar with certain markets, news traders can make a guess as to whether a stock or other trading instrument will increase or decrease in price following a market news report. Often these price moves happen within an extremely short period of time following the news; therefore, news traders must be quick to respond if they hope to capture profits. This also means that a news trader must be one of the first to receive breaking market news.

Noise Traders

  1. Introduction to Stock Trader Types
  2. Stock Traders’ vs. Stock Investors' Roles in the Marketplace
  3. Decision-Making Methods: Informed, Uninformed, Intuitive
  4. Informed Traders: Fundamental Traders, Technical Traders
  5. Swing Traders
  6. Buy and Hold Traders
  7. Value Traders
  8. Trend Traders
  9. KISS Traders
  10. Momentum Traders
  11. Range-bound Traders - Break-out Traders - Channel Traders
  12. Options Traders
  13. Options Seller Traders
  14. Day Traders
  15. Pattern Day Traders
  16. Intra-Day Traders
  17. Intra-Day Scalp Traders
  18. Contrarian Traders
  19. Active and Passive Traders
  20. Futures Traders
  21. Forex Traders
  22. Online Stock Traders
  23. Pivot Traders
  24. News Traders
  25. Noise Traders
  26. Sentiment-Oriented Technical Traders
  27. Intuitive Traders
  28. Price Action Traders
  29. Price Traders
  30. Detrimental Traders
  31. Unsuccessful Types of Stock Traders
  32. Conclusion
RELATED TERMS
  1. Market Value

    The price an asset would fetch in the marketplace. Market value ...
  2. Acquisition

    A corporate action in which a company buys most, if not all, ...
  3. David Einhorn

    Known for his short selling strategy, activist investor David ...
  4. International Finance Corporation

    The International Finance Corporation is an organization dedicated ...
  5. International Finance

    Definition of international finance
  6. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  1. What role does discounted cash flow (DCF) play in stock valuation?

    Understand the meaning and significance of discounted cash flow, and learn how market analysts commonly use this stock evaluation ...
  2. How do I use the dividend capture strategy?

    Learn how to implement the dividend capture strategy, an aggressive, income-focused stock trading strategy investors can ...
  3. What is the first day of the third quarter?

    Learn when the first day of the third quarter begins. Explore how reported financial results may have a profound impact on ...
  4. What is a common strategy traders implement when using Fibonacci Clusters?

    Learn common trading strategies traders use for trading with Fibonacci clusters to be able to enter a market at a very advantageous ...

You May Also Like

Related Tutorials
  1. Investing Basics

    Industry Handbook

  2. Fundamental Analysis

    Discounted Cash Flow Analysis

  3. Fundamental Analysis

    Ratio Analysis Tutorial

  4. Options & Futures

    Binary Options Tutorial

  5. The New York Stock Exchange
    Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

Trading Center