As we already wrote about in Momentum Investment, News trading can also be a stand-alone strategy. Probably the most interesting for new trades and for those interested in fundamental analysis. We all know that major news and press releases and events are critically important in the world of trading. Almost any asset, be it a national currency, a cryptocurrency, a stock or a commodity, can be moved by a economic/political event or even the companies own press releases.
Good news tends to move the asset price higher, bad news — lower. However, you need to plan your trades before the news hit the market. Once you see how the market react to the news, you start trading, and normally you only want to hold this position for short term, so when you see indication that the increase has stopped or going to dip you need to close your positions.