Charting or News to trade

[OrangeJuice]

Hi community,

Can someone confirm if traders / investors use the news as a primary way to buy/sell shares please. Its just that I read another post stating that they do not go by the news and use charting.. So not clear on this.

As I'm not too familiar with charting i would opt for the news.. (need to find a good UK source for the news also)

Would welcome your view to confirm mine. Thanks

[ThomasSchmidt]

I observed early in my trading career that by the time news has reached you, it is history and has already been factored into the price of the respective instrument.

I feel that looking for fundamental & technical indicators to find confluence of a strategy and/or domain/technical knowledge has offered better results.

Hope this helps. No advice implied nor given and all that jazz.

Edited April 16, 2020 by ThomasSchmidt

[OrangeJuice]

Hi,
I do think in this modern age we do have breaking news but I just dont know where to look.

I've looked at several screeners (Finviz, etc) and then got overwhelmed but expected I guess. Happy to look at fundamentals, but any idea on some basic metrics and what the ranges ought to be ? Any starting point appreciated.

Thanks again

[ThomasSchmidt]

For my own trading, I look for statistically unlikely events with both pricing (fundamental & technical) disparities and look for a strategy to profit from this.

An example of this would be the night of the Brexit vote. I observed that the pound was overpriced (above it's fundamental and technical valuations). I reasoned that if the UK stayed in the EU (which was at that point the most likely outcome), the pound would return to it's pre vote state. In this instance, by shorting the pound, I would have profited on either outcome of the events.

A recent example would be a break out of a corona virus in the far east. I observed from previous breakouts (there have been 5 now in 20 years in China), that this is shortly followed by poor fundamental results in the West due to supply/demand issues of raw materials. Once again, the downside risk of taking a short position using this strategy was low, yet, if the proverbial did hit the fan, then the upside would be immense.

The biggest risk to reward in my opinion is seeded in these events and realised in the volatility that follows. As volatility is price movement and price movement is profit/loss.

Hope this helps.

Once again, I'm not a pro, none of this is advice, what you do is up to you, not my responsibility and all that jazz.