Live stock market news can give you valuable information on your stock holdings on a frequent basis – as the news occurs. If you are a day trader, this will help you decide whether to buy, sell or hold. If you are long-term trader, this may just give you information but, not give you an indication to do anything with your holdings.
For long-term traders, live news will not affect your stock prices in the long term as much as it will if you’re a day trader. If you’re looking to make a profit day-by-day, live stock market news is an extremely important component of your trading strategy. As a day trader, you’ll want to pay attention to major news of the companies you have invested in: things like CEO and management changes, earnings, new product introductions, product recalls, press releases, global positions and expansion plans.
There are several places you can get your news from, and there are several apps you can download onto your mobile device for up-to-the-minute news. You’ll be able to read important updates as soon as they are available. Even everyday news on companies that you have invested in will give you valuable insight into their goals, mission and possible future endeavors.
It’s important to remember, though, that live news does not necessarily affect your long-term strategy. If your investment strategy is to buy and hold, then everyday news will probably not matter for the long term. What is long term? Generally, anything over the five year mark. Ten or even 20 years will likely net you a profit if you’ve invested in a stable company, so a minor news story will have very little effect on your overall stock price.
Even if you plan on holding on to your stocks for more than a few years, paying attention to live stock market news can give you great insight into the overall economic market. It can teach you what sort of news items affect prices, and how your stock holds up in troubled waters.
Updated and live news items can give insight and education on what drives stock prices, how to handle them and what to do in an economic crisis. This can be a more valuable education than anything you would learn in a classroom environment. Think of it as ‘the school of hard knocks. You will experience highs and lows in your stock trading career, but as time goes on, there will be more highs than lows.
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