Financial market news can be overwhelming to follow. Especially if you are not familiar with the terminology being used. This article has been created to help you understand the basics of financial market news and why it matters in stock trading.
The first thing you need to understand is that the financial stock market is a 24-hour global market. This means that stock prices are always changing. News that happens during the day in the United States will have an impact on the stock prices in Asia and Europe.
The second thing you need to understand is that there are two types of financial market news - fundamental and technical. Fundamental news is based on the underlying economic factors that affect a company, such as earnings, revenue, and dividends. Technical news is based on the charts and patterns of a company's stock price.
The third thing you need to understand is that financial market news can be positive or negative. Positive news will cause the stock prices to go up, while negative news will cause the stock prices to go down.
The fourth thing you need to understand is that there are two types of financial news - current and future. Current news is information that has already happened, while future news is information that has not yet happened.
The fifth thing you need to understand is that financial market news is released by different types of sources. These sources can be divided into three categories - financial institutions, media, and analysts.
Financial institutions are the largest sources of financial market news. They include banks, brokerages, and credit rating agencies. Media sources are the next largest source of financial market news. They include newspapers, magazines, and television networks. Finally, analysts are the smallest source of financial market news. They are independent research firms that provide analysis of a company's financial statements.
Now that you understand the basics of financial market news, you can start to follow the market and make informed investment decisions.