When you start on the market, you are always watching for news. I do not blame you, I also did the same few years ago but you have to understand that you are a retail investor and probably you are the last one to know what is happening in the world. Professionals have access to information sources that you can‘t even dream. So, what can you do?
You may know that professionals are always trying to hide their trading positions, but they can’t avoid the market volume. Professional traders can hide pending positions through black pools but when they buy or sell they start to create volume on the market and that’s your advantage.
In the coming weeks I will talk more about volume, but by now let’s focus on news. If a company is in troubles and is losing money, you will know that when the company numbers are released (assuming that accounting is not manipulated), but top shareholders know that weeks or even months ago, so they will start to sell calmly. Top investment companies also have access to more information than you, so they will sell before you. And sorry, but it is not your turn yet, before you know about the bad numbers professional traders with access to paid information will know that faster than you.
As you can see, you are the last one here, so you can’t assume that you know more than other traders, you should assume that others are better than you gathering information and you only can follow them. You must be aware of news schedule, because some key news can cause high volatility on the market but don’t try to be a magician who knows more than others, just read the market and try to understand what professionals are doing.
You should not lose time analysing news about companies, you need to spend time looking for trends, volume patterns, support and resistances levels. After that, you can use our free calculator to know if your trade have good win/lose ratios. If yes, just trade, the odds are with you!