Market News & technical analysis

Hi Folks,

I'm new to trading, and have little idea of what is required, yet i have the feeling most people have a system that combines technical analysis with influence from market news?

If this is correct, would some members be able to provide examples of what market news they have used in the past, and how it effected there system?

Regards, Ant.

I combine charts with news. Depending on what you trade the news is very important. Everything from politics to geology affects your trades so you need to keep up to date with financial and other news. I use Pageflakes to combine RSS feeds from cnn, cnbc, marketwatch, google, nyt etc. This way I can see whats going on quite quickly. Most trading platforms come with realtime news which you will also need.

hi antac 21
I hust wanna advice you to use both the fundamental and the technical analysis in your tarding.By using both of them you 'll get the best results.good luck

Remember to "buy the rumor and sell the fact"

Ron

technical and fundametal anlysis and news

hi there i believe that depending on the news alone or on the fundamental or technical analysis alone is not a good thing.but rather you should depend on them all.to get better results.wish you best of luck

antac21 said:

Hi Folks,

I'm new to trading, and have little idea of what is required, yet i have the feeling most people have a system that combines technical analysis with influence from market news?

If this is correct, would some members be able to provide examples of what market news they have used in the past, and how it effected there system?

Regards, Ant.

Click to expand...

Hi Ant - I have done this with success, using results announcements. London share results are normally released at 0700 before the market open but the market is not 100% efficient so the news will not be fully in the price at the open at 0800. I used to wait for about 0830 and see the direction of price movement: if up, buy (I never tried this with shorting). Your stop is the closing price of the day prior to results being released, or a suitable % stop for money management purposes. More often than not the share will continue to rise through the day and I have seen rises of easily 10% from 0830 to midday. Exit as early as you can, it will not pay you to let these run the full day or overnight. If the share is a largecap you should be able to get in and out with a profit on the same day. After the close you can re-evaluate the new TA picture and decide what to do - you might even go in long again, on a longer time-frame.

Maruti Suzuki launches A-star

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The A-star was launched in the city by R C Bhargava, Chairman Maruti Suzuki India and other senior company officials. A-star has been designed keeping in mind aspirations of the urban economy-conscious customers, who seek best-in-class fuel efficiency, lower emissions and high quality and high performance along with style. It also takes the engine technology in India to the next level. A-star is the most relevant car that addresses the needs of today's customers be it India or any other part of the world.

The company made this announcement during the trading hours today, 19 November 2008.
BSE tips

antac21 said:

I'm new to trading, and have little idea of what is required, yet i have the feeling most people have a system that combines technical analysis with influence from market news?

Click to expand...

You're feeling is actually incorrect. People use all kinds of different combinations of things in their trading. A news/technical combination is something that only the day traders (the minority) are really going to be able apply because the rest aren't focused on the markets in a sufficiently narrow timescale to be able to do that.

Also, news trading and fundamental trading are not the same thing. They seem to be referred to interchangably by some.

Your own way

I agree with Rhody, ultimately the trading style is dictated by the trader.
First you need to know what timeframe you want to trade, and what; then comes the disciplines of risk and money management: can you afford it?
Being under capitalised is financial suicide, which is why you must answer the questions above.
Say you want to trade shares medium to short term (a few weeks to a few months), you could use relative strenght to assess the strongest sectors and the strongest stocks within those sectors, then use technical analysis for your entries/exits and stop losses.
This leaves the risk management side, say, 2% of your capital per position, and at what levels will you scale your entris/exits.
The point is - there is no right or wrong answer, it is something very personal, tailored to the trader himself; you are the only one who can decide on this.
Experiment and test; paper trade to get a feeling of what you want, then start working with the lowest position possible (keeping commissions in mind!) to gain confidence.
Hope this helps.

Eduardo.:smart:

[Originally Posted by antac21
Hi Folks,

I'm new to trading, and have little idea of what is required, yet i have the feeling most people have a system that combines technical analysis with influence from market news?

If this is correct, would some members be able to provide examples of what market news they have used in the past, and how it effected there system?
Regards, Ant.]

Yes it does correct that technical always influence by market or company fundamentals. And now a day’s stock is totally following the market fundamental. Globally recession is on going most of company are reaching historically lower price. So we should keep eye on market news, I mean market fundamental as well as company’s (fundamental) financial history which will help you to judge whether it will early affect by market or not. Financially which company strong they will affect later, though they will affect must but when positive news will come out they will rebound fast.
So before investing in a stock we should analyze company’s fundamental and market fundamental along with technical.
Thanks.