Every week we provide insights into popular assets and hot questions, so you can easily learn more about the investment market in bite-sized pieces.
In this Markets in Focus we take a closer look at Trading with Strategy: Spotlight on the News Strategy
Trading with Strategy: Spotlight on the News Strategy
This week, we’re focusing on the critical importance of trading with a well-defined strategy, specifically honing in on the news strategy.Trading CFDs (Contracts for Difference) offers a dynamic way to capitalize on current market conditions. However, diving into CFD trading without a clear plan is a surefire path to losses. To trade effectively, it’s essential to have a strategy—whether simple or complex, pre-existing or self-developed. One such approach is the news strategy.
Exploring the News Strategy
News trading in CFDs involves closely monitoring the economic and financial calendar for upcoming events that could impact market behaviour. These events offer potential trading opportunities.
There are two primary approaches to news trading: pre-release and post-release.
- Pre-release trading: Here, traders try to anticipate two things—whether the data will exceed or fall short of consensus expectations, and how the market might react to any surprises.
- Post-release trading: This approach involves waiting for the news or data to be released, then trading based on the market’s predictable reaction
While no strategy guarantees success, having a structured approach like the news strategy provides a solid foundation for making informed trading decisions..
Stay Updated with Change App
In the Change App, you’ll find up-to-date financial news, and we regularly send push notifications about market conditions.
Make sure you’ve enabled your preferred updates in the app to stay informed.
We wish you a successful trading week—always with a strategy in place!
Until next week!
