How to trade Fundamentals

Can i trade fundamentals as a day trader and which kinds of events that are most likely to cause spikes or big movers.

1 Like

The major news events are NFPR’s and interest rate announcements, but unemployment figures, inflation rates, GDP data and things like the Michigan sentiment report are also significant. Most daytraders would probably say there just aren’t enough opportunities a month to make this a viable and consistent approach. Add to this the way that spreads get widened by brokers before news announcements and for a time after: expect spreads 10+ times the regular bid-offer difference around significant news.

Training news is maybe like tight-rope walking. Yes, its just walking but most people who are really good at it got there by being really good at something less risky first.

2 Likes

To stay updated with the latest trends, you must consider Yahoo Finance. It is the best place for me to learn about new events.

It sounds like you’re asking about “event trading.”

Event trading is considered its own approach to trading. Since event-driven strategies are designed to capture profits from market reactions to news events and headlines, it’s distinctly different from the fundamental and technical approaches.

I wouldn’t recommend event trading for beginner traders. Not only does one have to be constantly aware of when market-moving events are scheduled, but one also needs to know how to interpret the events, which requires an understanding of global macro, monetary policy, fiscal policy, geopolitics, financial history, etc.

It’s a pretty steep learning curve. And you’ll be trading against folks who are well-versed with such broad topics.

1 Like

You can try the buy and hold strategy instead of short term trading. Keep track of the events and stay updated.