There are usually a few significant economic data release events and news events each week, including releases of information on various countries’ Gross Domestic Product information, various economic indices and indications of significant change in political conditions or policy/regulatory changes. You can “trade the news” by closely monitoring the impact different news events have on prices and market activity. You can also capitalize on the reactions that result when data or news deviates sharply from what the market anticipated, essentially making money off of surprise.
- Economic data release events can include the prelease of Gross Domestic Product information and a variety of price indices.
- News events can include major changes in government composition or policy, as well as speeches and announcements by major economic actors.
- Trading the news can involve either using changes in price and market activity caused by news or data releases to inform trades, or else monetizing the reaction when news deviates from expectations.
“Trading economic data releases and news events can be a very profitable and satisfying venture.”