What are the Differences between Investing and Trading News?

What are the Differences between Investing and Trading News?

In this article, you’ll learn the differences between investing news and trading news, and what kind of news might fit your financial goals. We will cover the following topics:

  • The frequency of stock market news
  • The timing and frequency of currency and commodity news
  • Short, medium and long term perspectives

Investment news or trading news, which to choose? They are often lumped together, but there are significant differences between them in terms of timing, frequency, topic and financial preferences. Once you become aware of these differences, you will know more clearly when to consider each type of information in your decision making.

When business results matter most

If you’re primarily interested in tracking company results and buying or selling stocks based on a company’s fundamentals and performance, you might prefer investing news (or stock market).

Stock market news breaks down into quarterly, semi-annual and annual reports of large capitalization listed companies. Earnings release periods occur during the first six weeks of each quarter and, depending on the results, can have a significant impact on investor sentiment and market trends.

If companies’ results are better than expected, investors tend to regain confidence and sentiment improves, often boosting the performance of an industry or even an entire stock market. The positive mood can be contagious and spread from region to region, with investors banking on the best performance of the biggest and most important multinationals.

If earnings season yields negative results, a sell-off could be imminent, with all the implications of a bear market: falling stock prices and negative sentiment.

How far in advance should you plan?

Investing news comes at predictable times in the calendar year and business results can be good, bad or indifferent, but many investors take a long view of the stocks in their portfolio and hold on to their existing assets. , regardless of the information. Others have a medium-term view and can adjust their portfolio according to their quarterly or semi-annual expectations.

During the earnings season, market trends can diverge from the general economic situation. Even though the broader economy is in a downturn, investors can focus on profits and their effects on their portfolio. This is not the case in the trading markets, where economic indicators have an effect most of the time.

When prices and economics matter most

If you are naturally drawn to news related to commodity prices and currency values, you may prefer to follow trading news in the form of economic benchmarks. Analysis of economic performance is often included in trading news, if only for background information.

Economic indicators are often short-term, such as monthly employment updates. Traders consider this information when making trading decisions, which often impacts spot prices of commodities like crude oil or gold and the value of currency pairs.

Some trading styles are based on the short-term effects of economic updates, such as day trading and scalping. The nature of trading information lends itself to these styles, as they can trigger short-term price changes when some or all of the estimated 10 million global trading community makes decisions. based on these.

How do trading and investing styles come together?

Is there common ground between trading and investing styles? Over the past few years and as equities have become more popular in the online market, the CFD (Contract for Difference) financial instrument has become a method for trading the price movements of equities and indices. Essentially, CFDs can be used during bullish or bearish price trends triggered by significant events. CFDs can be traded on several underlying assets, including stock indices and stocks.

When risk management matters most

Caution should be exercised in the use of trading and investing news. They are an influential source of information, but it would be unwise to rely on them 100% when there are other sources that can also support your decision-making. These include technical analysis, analyst opinions and financial advice from qualified professionals.

To conclude this article, trading and investing news differs in three important ways: whether the news comes from companies or economic benchmarks; the underlying assets they affect, and the long-term or short-term approaches.

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INFORMATION ON ANALYTICAL MATERIALS:

This content does not contain and should in no way be interpreted as containing investment advice or recommendations, an offer or a solicitation to trade in financial instruments. Please note that this marketing communication is not a reliable indicator of any current or future performance, as circumstances may change over time. Before making any investment decision, you should seek the advice of independent financial advisers to ensure that you fully understand the risks involved.