Investing online using news: here’s how and why

Written by Author

On May 8, 2020

Online trading is an activity that is now becoming increasingly popular even among ordinary people. In fact, there are many people who see in this particular branch of high-risk finance a more concrete possibility to achieve economic independence. But it is clear that although the Market can actually give generous profits without even too much effort, it is also true that there are elements that must always be considered if you really want to earn money without too many surprises whatsoever.

When we talk about the Stock Market we are referring to a world that is undoubtedly full of potential, but which is equally not without its pitfalls. There is however a way to increase the former and reduce the latter: investing taking into account the rumors circulating on the net and which can be found on targeted sites such as https://newsscraper.com/ .

That’s right: a good trader is a bit like a good neighborhood granny, who always knows everything about everyone, who always keeps up to date on what is happening around her and who tends to analyze every single news. How come this combination? Quite simply because the trader must be aware of the fact that operating on the markets, he must know by force of things that the markets themselves move in one direction or the other only and exclusively on the basis of the “sentiment”, that is the reactions, of the emotion and rumors that follow each other hour after hour.

The fact that an index falls, that a currency strengthens, that a stock grows in value and so on are all symptoms of the fact that a news has arrived on the market that has pushed participants to invest or divest on a given asset. For this reason, we say that to increase the chances of victory you have to “look around”: because where there are movements, where a government is about to make a choice, where a central bank is about to announce an interest rate cut, where an agency rating is about to cut or increase the degree of reliability of a given economy, where the people are about to vote on a referendum that will change the political asset of their country, and so on, it is precisely there that we must focus all our energies!

To give an example and to understand a little the terms of the question of how news can influence the markets, let’s take for example an event that has shaken the international community: the abandonment of the United Kingdom from the European Union. As everyone will have noticed, the news of the victory of Brexit, or of the front that was pressing for London to leave the EU, generated a real wave of panic in markets all over the world: all the main European stock exchanges fell to peak with a Milan that scored the most serious loss ever (over 12%); Although non-European, Tokyo and Wall Street suffered the blow with a major loss, and the British pound itself has plummeted to an all-time low for 31 years. Do you now understand how news can give rise to many different trading operations?

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