What did I get wrong, if anything?

[SGParkinson]

So I've not started trading yet as I want to get months and months of practice under my belt with a demo account and I've been watching the news and following reuters on a daily basis to get a feel of what moves the markets. I noticed last night a news article that mentioned how a Libyan oil rebel had rejected the new government, putting any chances of removing a blockade into jeopardy. http://www.reuters.com/article/2014/05/27/us-libya-politics-jathran-idUSKBN0E70ET20140527

I expected European Oil companies to rise on this news but BP. has lost around 0.2% this morning. Am I wrong in thinking this news would affect the price in this way?

 

[Trader333]

You were too late in being able to make use of the news. By the time you could have made a trade the price would already refelected the news or the news was not important enough of a consideration to make a difference to the share price.

 

[Mr Fox]

So I've not started trading yet as I want to get months and months of practice under my belt with a demo account and I've been watching the news and following reuters on a daily basis to get a feel of what moves the markets. I noticed last night a news article that mentioned how a Libyan oil rebel had rejected the new government, putting any chances of removing a blockade into jeopardy. http://www.reuters.com/article/2014/05/27/us-libya-politics-jathran-idUSKBN0E70ET20140527

I expected European Oil companies to rise on this news but BP. has lost around 0.2% this morning. Am I wrong in thinking this news would affect the price in this way?

Good Morning SGP,

Please take this piece of advice with a pinch of salt if you wish, but IMHO what you will find, as you spend many a month staring at charts, you will find that the charts will tell you more information, than any bit of news will.

With "most" news releases it is already factored into the price(discounting mechanism) before the news is released to the general public, unless it is a major breaking news coming along quickly.

Libyian oil news has been so messy since the ousting of Gaddafi, that the markets are not really surprised with what happens.

I do not know your trading style, but if you are a trend following position trader, even the likes of NFP will not affect the over all trend for too long.

If you are a intraday swing trader/scalper, then check for various chart formations that give a positive probable outcome that you're looking for.

As for BP losing, always check what the charts are telling you from a macro to micro perspective to get a clearer understanding, and jump on the prevailing trend.

HTH

Best
John.

 

[SGParkinson]

Good Morning SGP,

Please take this piece of advice with a pinch of salt if you wish, but IMHO what you will find, as you spend many a month staring at charts, you will find that the charts will tell you more information, than any bit of news will.

With "most" news releases it is already factored into the price(discounting mechanism) before the news is released to the general public, unless it is a major breaking news coming along quickly.

Libyian oil news has been so messy since the ousting of Gaddafi, that the markets are not really surprised with what happens.

I do not know your trading style, but if you are a trend following position trader, even the likes of NFP will not affect the over all trend for too long.

If you are a intraday swing trader/scalper, then check for various chart formations that give a positive probable outcome that you're looking for.

As for BP losing, always check what the charts are telling you from a macro to micro perspective to get a clearer understanding, and jump on the prevailing trend.

HTH

Best
John.

Thanks for the reply John.

The fact that the news has been factored into the price before the markets open is something I wasn't aware of before. I'll take this into account and it will definitely strengthen my awareness in future.

As for my trading style, I don't know how I'm going to trade yet. I suppose that by the time I start trading for real I will have developed a style that feels comfortable. I am currently building a business away from my full time job so in the future I will hopefully have a stake I could afford to lose but I will mainly be investing for growth rather than income.

Thanks again.

Stephen

 

[ffsear]

Hi,

I don't really follow the news and am pretty poor at interpreting it. However I see this report as rather negative for the oil companies? No?

 

[SGParkinson]

Hi,

I don't really follow the news and am pretty poor at interpreting it. However I see this report as rather negative for the oil companies? No?

Well my thinking was that the blockade would continue to stop oil exports from Libya and so tightening supply to Europe. High demand + Low Supply = Price Increases is how I figured it.

 

[SGParkinson]

Could this have anything to do with it?

http://www.ft.com/cms/s/0/a1c788c2-e427-11e3-8565-00144feabdc0.html#axzz32vrjkvMo