Day trading can be a viable day-job for those who have a mind for analytical reasoning and a keen understanding of the market and its fluctuations. Day trading can be looked at as a simple way to make some straightforward money using online tools and an attentive eye on the market.
Your first thing to do is to sign up for a trading account to start trading your investments. Many of these sites are set up by brokers to allow traders to exchange contracts and stocks on the real-time market easily. Some companies give you a platform with fewer brokerage expenses for the same.
Keeping track of the news is one of the essential factors for day trading. A market is a volatile place, and keeping an eye on a handful of stocks helps you better optimize the trades. Most financial news platforms are tailor-made to highlight big movers and market trends that affect market movement.
Consuming news correctly makes all the difference to gain the most out of it. Some trading platforms themselves have a very prominent monitoring service that will feed real-time updates on price movements. However, this is not recommended if you want to keep a check on predictions and estimations.
Another great way to keep a watch on the market is by using a custom-made dashboard for just your stocks. You can create a visualization using an API with python correlation for your portfolio if you have a working knowledge of programming. These will draw market data and formulate a custom table for you.
How To Consume News Effectively
One can consume news on multiple platforms, or stick to one network of choice. The broader idea is to ensure that you have all the resources at your disposal before you hop into day-trading. Before we get into where from, let’s understand what is the best way to consume news.
The most crucial factor is timely news. In your leisure time, you can consume news based on market studies and product innovations. These help you understand what companies are in the running and have the potential for better growth. Ensure that you start your day with the news relevant to the present-day market.
The legend of trading and investment Warren Buffet himself reads over five newspapers each day. This is to bring a wider lens on the market and to understand new trends. The second most crucial point is that one source is not enough. Many sources might be ridden by biases or information lag, thus, keep your eye on at least three references.
Keep these sources handy if you depend on a news application, a website, or a blogger. Keep access to them bookmarked, or make them your homepage. You can also choose to sign up for trigger-notifications, so the news hits your screen as soon as it is published.
Keep in mind that when you get your trading information from news, you also lack the real-time advantage of taking actions on them. So use these only as a reference. It’s a wiser option to keep a dashboard of relevant stocks and options that you are accessing and monitor them through the trade-hours.
Keeping a check on the news also helps you in the case of a wash sale. In such a case, you are likely to be entitled to the lower cost of the stock or securities, but the amount you can claim depends on your circumstances and your total losses. Thus, having all your data at all times is a helpful aid.
You must also understand that a news agency has experts who know the market in-and-out but are still bound by publishing space and air-time to share this information. The news you see also depends on the market demand for consumption and more focused on “newsworthy” actions of the day.
What News Outlets Must One Watch?
Most platforms that feed market news function in the same way. They highlight the stocks that see movement and growth and talk about the trends affecting them. Sometimes it could be a government order or a global situation that could lead to market fractionation. The job of news agencies in this play a huge role.
A website, like a market-watch, is a significant medium to get all your day-trading news. They focus on charts for each stock and give a real-time update on market changes. One single scan through the page, you can get all the latest news on the market and see the day’s big stock moves. You can also set up a portfolio and watch your stocks in specific.
Bloomberg is one of the leaders in market studies and news. They are almost synonymous with global market news. Their website is not just accurate to the press but also a massive source of resources and top-quality research and debates. They have some of the top market experts, and the views can be nearly taken at face value.
Lastly, you can also consider the CNBC market. They are also considered the market leaders when it comes to reporting and broadcasting. They have a strong network of journalists and a superior panel of experts who process the right advice. treader are a vast network to follow for both stocks and commodities.
News is a reliable source of information not only for real-time movement of stocks but also for understanding the market better. One must look at it every day to ensure that they are up to date with not just the markets, but also the affairs of the world that affect the market.
In addition to going through newspapers to see what is being reported, or trying to get updates from websites and members-only websites such as Market Watch, many investors use a stock exchange like the NYSE or the NASDAQ, in addition to other transactions.
Think of the news as a helping buddy, and not the ultimate guidebook to trading. You must still depend on the real-time updates on your trading platform for the best and most accurate information, which is why you must find the perfect platform for your needs.