How to “trade the news”: a comprehensive overview (2018).
The best software, books, research papers and videos to help you trade the stock market.
It’s no secret that stock markets fluctuate on news, be it breaking (e.g. data hacks) or expected releases (e.g. financial reports). Historically the phrase “trading the news” meant acting upon earnings reports; however, with the rise of social media, this phrase is getting a makeover.
With financial markets operating at a breakneck pace, Twitter, blogs, and crowd-sourcing technologies have become the toolkit of choice for savvy investors looking for business trends and acting upon, in the moment, breaking news stories.
Social media has become a breeding ground of market moving stock news. Whether it’s the CEO’s of a multibillion dollar company announcing a new product:
… or celebrities criticising popular apps:
… breaking news matters.
In the following, we have collated the best tools, books, videos and research papers to help you trade the news in 2018.
Software
- Benzinga Pro ($99–249pm)
- TradingView ($9–35pm)
- Stocktwits (Free)
- Tweetdeck (Free)
- Scoop Markets ($29–349pm)
- City Falcon (Free)
Books
- Social Media Strategies for Investing: How Twitter and Crowdsourcing Tools Can Make You a Smarter Investor (2014)
- Trading on Sentiment: The Power of Minds Over Markets (2016)
In markets, as in poker, if you don’t have an edge, you shouldn’t play
- World Event Trading: How to Analyze and Profit from Today’s Headlines (2007)
- Trading Catalysts: How Events Move Markets and Create Trading Opportunities (2006)
- The Event-Trading Phenomenon (2003)
- Event Trading: Profiting from Economic Reports and Short-Term Market Inefficiencies (1996)
Research and studies
- Evaluation of News-Based Trading Strategies (2014)
- Trade on the news? Information Trading
- Buy on bad news, sell on good news: How insider trading analysis can
benefit from textual analysis of corporate disclosures (2012)
benefit from textual analysis of corporate disclosures (2012)
- Which News Moves Stock Prices? A Textual Analysis (2013)
- Intraday News Trading: The Reciprocal Relationships Between the Stock Market and Economic News (2017)
- Using Twitter to Predict the Stock Market (2015)
- Twitter mood predicts the stock market (2011)
- Sentiment Analysis of Twitter Data for Predicting Stock Market Movements (2016)
“Stock prices should go up on recommendations, even if there is no new information in them, because there is a self fulfilling prophecy. If this is the only reason for the stock price reaction, though, the returns are not only likely to be small but could very quickly dissipate”
- Twitter mood predicts the stock market. (2010)
- Stock Prediction Using Twitter Sentiment Analysis (2016)
- Stock Price Movement Around the Merger Announcements: Insider Trading or Market Anticipation (2014)
- Modelling the Stock Market using Twitter (2010)
- Analyzing Stock Market Movements Using Twitter Sentiment Analysis (2012)
- Trading the News: Mike Bellafiore (2015)
There are three factors to make one’s trading decisions, and those are, intraday fundamentals, reading the tape, and technical analysis.
- The Stocktwits Edge: Actionable Trade Setups from Real Market Pros (2015)
- The Impact of Non-Financial Reporting on Stock Markets in Emerging Economies (2012)
- The Wisdom of Twitter Crowds: Predicting Stock Market: Reactions To FOMC Meetings Via Twitter Feeds (2016)
Videos
- How to Trade the News? (2018) 12k views
- How to Trade the News — An Exact Method Every Trader Should Know (2011) 82k views
- How To Trade Stocks Reacting To News (2017) 5k views
- Trading news releases and fundamentals, w/ biotech day trader John Welsh (2015) 8k views
- How to Trade Stocks Post News Event (2016) 5k views
- Live Trading Short Selling Low Float Penny Stocks With Good News (2018) 1k views
- 3 Ways to Capture Quick Profits Trading News (2017) 1k views
- Day Trading/Options Trading Tutorial — How to find stock market news — TweetDeck Setup (2016) 7k views
This article was collated by Scoop Markets.
Scoop is the breaking news & analytics dashboard for crypto traders.
- Our algorithm analyzes thousands of tweets every second to identify breaking news, before it breaks.
- We have the largest collection of technical analysis available online
- In depth analytics, trading signals, alerts and more…
