How To Use The News To Guide Your Trading

The key to successful trading is to use as much information as possible to inform your trades. That means conducting in-depth research into all areas of the market that could affect the asset that you are interested in trading. One key factor that is certainly worth including in your analysis is the news. In this article, we will guide you through how to use the news as part of your trading research process.

Table of Contents

Best Award Winning Brokers

Show Search Filters
  • is a reputable trading platform, famous in the social trading industry. In 2018, the brand decided to conquer the US market and launched the local brand there. First, the company functioned solely as a crypto trading broker. Yet, later it added other items to its list of tradeable assets. Therefore, now it offers stocks and ETF trading as well. 

    With a history dating back to 2007, eToro has amassed a large user base across more than 140 countries. When cryptocurrency emerged, the brand used a unique chance to enter the American market.

    One of its key features is CopyTrader, the social trading tool and a proprietary product of the project. It allows novices to repeat trades from top traders with just a few clicks. Thus, the tool offers a fresh approach to this asset class.

    This guide aims to provide a comprehensive eToro review to help traders make informed decisions.

    etoro USA

    eToro offers trading services across many regions worldwide including the USA

  • OANDA ( boasts of a high level of trust and reliability, as evidenced by its impressive Trust Score of 93 out of 99. While OANDA is not a publicly traded company nor does it operate as a bank, it is subject to regulation by seven Tier-1 regulators, signifying a highly trusted status. Additionally, it is supervised by one Tier-4 regulator, which means that users should utilize a cautious approach to risk management.

    OANDA Corporation is regulated by the CFTC/NFA. OANDA is a member Firm of the NFA (Member ID: 0325821). CFDs are not available to residents in the United States.
  • A standalone copy-trading ecosystem, providing equities, foreign exchange, commodities and cryptocurrencies markets. Provides a global selection of brokerages.

Why is the news important?

The news is incredibly important to investors and traders because the markets can be easily moved by significant news stories. The basics of determining whether an asset will rise or fall comes down to being able to predict whether or not that asset will attract investors and the news can play a big role in this.

News events such as the announcement of policy changes, economic data releases, corporate earnings announcements and geopolitical developments can all cause significant price movement. If traders are not aware of these events, they could be easily caught out by volatility.

Therefore, it is important that traders are up-to-date with the latest news events.

How to use the news in your trading

If you understand how different events could impact the market, it is possible to use the news as part of your trading strategy. Doing this involves regularly updating your knowledge of current news events and using this knowledge to make informed decisions about the potential direction of the market.

For example, you may notice that a company has published a positive earnings report. This could suggest a potential bull run and you could use this information to make decisions about whether or not to place a trade. Alternatively, if you notice that a company has received prominent negativity in the news, it could be a sign of a potential bear market. Again, this information could be used to guide your trading.

To successfully use the news as part of your trading strategy, it is important that you follow these steps.

Identify relevant news sources

Unfortunately, not all news sources are relevant or even legit. Therefore, it is important that you take time to find a handful of relevant and trustworthy news sources. The best news sources should be unbiased, accurate and fact-based. Stories that are heavily opinionated or make false claims should be avoided.

Stay up-to-date with the latest stories

To avoid being caught out by sudden price movement, traders should stay on top of the latest news stories. This can be difficult because the news changes every day. However, there are tools available to use that can make the process easier.

If you want to be one step ahead of the news, we recommend using the economic calendar that provides key dates and times that traders should be aware of.  Economic calendars are free tools that provide a schedule of important economic events. You could use this to prepare yourself for potential market fluctuation.

Adjust your training strategy

The most successful traders use a number of different research and analysis tools to make decisions. If you start using the news to make predictions about the market, it is important that you adjust other aspects of your trading strategy accordingly.

For example, if you planned to hold a trade short-term but the news suggests that the price may appreciate over a long time frame, it may be a good idea to take a long-term position instead.

You May Also Like…