Analyzing Economic News and Events

Trading Discussion News and Economy
1

Hello Guys,
Each one of us uses a specific way to maneuver around News and economic events to stay safe. Intra-day traders don’t trade before or a short time after the big news. Swing traders will get caught more often as they keep their trades for much longer.
I know what reaction I will get here. But I will still bring up my question.

How can we follow and analyze these events, NOT TRADING THEM to improve our trading? Which one of these options or combination is good?
I intend to brainstorm and gather all in one place for the sake of everyone.

****** PLEASE PARTICIPATE AND ADD CONTEXT ******

1- Podcast
2- News outlet
3- Newspaper
4- Social Media
5- Mentor
6- Chatroom
7- Personal analysis

2

HI,
I am very long term and boring when I consider news. I have recently (16Jan24) set out my investment and trading plan for 2024 based on the fact that there will be elections in the US and the UK around November 2024. This only happens every four years, so whatever the outcome it will be big news. My plans are based on the following events which I expect to happen, and that has driven my high level plan. At a more detailed level, I do not “trade the news”. I just look for markets exhibiting higher than normal volatility and participate in those markets.
Some bullet points that I expect to influence market pricing:

  • Almost all governments will report falling inflation and increasing employment, not necessarily because it is evidenced by their respective think tanks, but because they want to encourage people to vote them back into power.
  • The US will reduce interest rates before the EU and UK, and will continue with “QE forever” as if $2Trillion deficit of a decade ago now $20 Trillion last year did not happen. Take a look at Worlddebtclock.
  • The UK will follow the US but with a lag, and will reduce interest rates in an attempt to stimulate the property market. Like the US, they will justify more spending and “giveaways” with news about record government revenues, and will try to bribe voters selectively by appearing to give away stuff that they just added to the average Joe’s tax bill in recent years.
2 Likes
3

Round and round we go…

4

Personally, I am not so really into fundamentals as it is very hard to interpret. Some major impact news is the leading indicator while some still important but lagging indicator etc. You need to be able to so called “Mix and Match” to have a good interpretation of the story. Usually, I wait for the news to released and then see if the direction upon news released is sustainable. I’ll just jump in if I still interest in it because during the news being released, there is a liquidity issue. Many people not getting filled yet. See what they will do afterwards.

But, in case your interested in learning fundamentals, then I think BK Forex is your best bet. Kathy Lien is good at reading fundamentals. When I do my weekend analysis, I would go through her instagram also to update myself what’s going on in the finance world right now so that maybe I can avoid trading it if I do feel like it’s risky to get involve (the Yen intervention upon USD/JPY reaching 150 mark for example). As a day trader, I wouldn’t be able to tank hundreds of pips volatility occurring in a matter of seconds. I’ll get stopped out and even get slippage.

5

So, let me list a couple free resources that you can use.

First of all…

Twitter, or X, whatever you like to call it nowadays.

But…

Not just the classic interface, no.

You should use a Tweetdeck and structure it like this:

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And you add to it users that you find useful and valuable to follow.

Of course the usefulness of it depends on the profiles you follow.

If you follow profiles that are high quality, then it’s useful.

Otherwise it isn’t, makes sense?

Perfect.

Then…

Bloomberg market surveillance:

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They have an amazing show on Youtube that you can watch to get briefed about everything you need to know fundamentally about the markets.

Again, freely available on Youtube:

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Keep in mind tho…

Bloomberg’s show is more than 2 hours long, and they don’t always talk about market related stuff, often FX related matters are only like 10 minutes or so within the show itself.

Also they talk a lot of politics, and other stuff that you may not be always interested in.

Still tho, the parts specific about market stuff are extremely useful to stay well updated.

Alright.

Then we can get into classic websites like ForexLive where you can see a stream of economic news and events to stay updated with.

The problem tho is that those type of websites will just drive you crazy if you don’t filter through all of the information.

I mean, there’s A LOT of fundamental stuff that does NOT have any relevance to your trading, so you have to filter through that.

That takes a bit of experience.

Quite a bit.

So a Tweetdeck where you can add only the traders and profiles you know deliver straightforward value that matters for your trading is better, or similarly a show like Bloomberg market surveillance that filters down only to the relevant stuff is also… better.

Let me show if you find these useful.

6

If it is within your budget some paid services that are not priced exclusively for institutions include.

MetaStock Xenith (a rebadged retail version of Reuters Eikon)

Or a live NewsSquawk service.

7

You can analyze economic events and news on the daily basis for your trades from the chart patterns reading, using platforms like trading view, investopedia etc.

8

I recommend using reliable news outlets, podcasts, and personal analysis. Connecting with mentors or chatrooms for diverse insights is also super helpful!