What are the differences between investment and trading news?

In this article, you’ll learn the differences between investment news and trading news, and what kind of news might suit your financial goals. We will cover the following topics:

  • The frequency of stock market news
  • The timing and frequency of currency and commodity news
  • Short, medium and long term

Investment news or trading news, which should you choose? They are often lumped together, but there are significant differences between them in terms of timing, frequency, subject matter and financial preferences. When you become aware of these differences, you will know more clearly when to consider each type of information in your decision making.

When business results matter most

If you are primarily interested in tracking company performance and buying or selling stocks based on a company’s fundamentals and performance, you may prefer to invest in news (or the stock market).

Stock market news is divided into quarterly, half-yearly and annual reports for listed companies with large capital. Earnings release periods occur in the first six weeks of each quarter and, depending on the results, can have a significant impact on investor sentiment and market trends.

If corporate performance is better than expected, investors tend to regain confidence and sentiment improves, often boosting the performance of an industry or even an entire stock market. The positive mood can be contagious and spread from region to region, where investors bet on the best results from the largest and most important multinational companies.

If the earnings season produces negative results, a sell-off may be imminent, with all the consequences of a bear market: falling stock prices and negative sentiment.

How far in advance do you need to plan?

Investment news comes at predictable times in the calendar year, and business results can be good, bad or indifferent, but many investors take a long view of the stocks in their portfolio and hold on to their existing assets. , regardless of the information. Others have a medium term and may adjust their portfolio according to their quarterly or semi-annual expectations.

During the earnings season, market trends may differ from the general economic situation. Even if the broader economy is in a downturn, investors can focus on profits and their effects on their portfolio. This is not the case in the trading markets where economic indicators have an effect most of the time.

When prices and economy matter most

If you are naturally drawn to news related to commodity prices and currency values, you may prefer to follow trade news in the form of economic benchmarks. Analysis of financial results is often included in trade news, if only for background information.

Economic indicators are often short-term, such as monthly employment updates. Traders consider this information when making trading decisions, which often affects the spot prices of commodities such as crude oil or gold and the value of currency pairs.

Some trading styles are based on the short-term effects of economic updates, such as day trading and scalping. The nature of trading information lends itself to these styles as they can trigger short-term price changes when some or all of the estimated 10 million global trading communities make decisions based on them.

How are trading and investing styles related?

Is there common ground between trading and investment styles? In recent years, and as shares have become more popular in the online market, the financial instrument CFD (Contract for Difference) has become a method of trading price movements in shares and indices. Basically, CFDs can be used during bullish or bearish price trends triggered by significant events. CFDs can be traded on several underlying assets, including stock indices and shares.

When risk management matters most

Caution should be exercised in the use of trade and investment news. They are an influential source of information, but it would be unwise to rely on them 100% when there are other sources that can also support your decision making. These include technical analysis, analyst opinions and financial advice from qualified professionals.

To conclude this article, trade and investment news differ in three important ways: whether the news comes from companies or economic benchmarks; the underlying assets they affect and the long-term or short-term approaches.

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This content does not and should in no way be interpreted as containing investment advice or recommendations, an offer or a solicitation to trade in financial instruments. Please note that this marketing communication is not a reliable indicator of any current or future performance as circumstances may change over time. Before making any investment decision, you should seek the advice of independent financial advisors to ensure that you fully understand the risks involved.

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