How important is reading the newspaper to understand trading?

A lot of times the stock market movement is in response to the speculation. It is being regulated by the financial news and sentiments present in the market. As we know, the financial market is volatile, and this reflects in the movement of the share prices. The economic activities of the world are driven by this volatility, and the stock market can be regarded as a snapshot of the health of these activities. The importance of global financial news for a stock broker cannot be underestimated.

Events and Calamities:

The stock market is also affected by other events and natural phenomena. Terrorist attacks, civil movements, socio political events like elections, natural calamities like flood and famine, international diplomacy, and even oil prices. These events have a significant effect on the financial and economic conditions of a company, a country, and the world. It is hence, crucial to be in touch with the latest news so that one can be up to date with the expected outcome and speculate accurately.

Speculation:

Traders and investors should be aware of the speculations, and make trading decisions accordingly, to avoid losses. They should be able to guess the collective thinking and take immediate action to prevent losses from falling share prices. At the same time, they should make most of a bullish market due to positive sentiment and buy shares to book profits. The soundest way is to keep track of the news is by having constant access to it.

There are many sources from which financial news can be obtained. The most convenient and the best one is the internet.  The internet can be accessed from the convenience of your smart phone or your PC. There are many websites which update current news within seconds. These news-sites cover the news about the most active stocks. They provide information about the stock updates and market movement.

There are several TV channels today that track live movement of the stocks throughout the day. The channels also provide information about various stocks from a sector and their speculation. They correlate the performance with the current market conditions and business news. They also predict the performance of the stock market and advise on buying and selling of stocks, mutual funds, and other securities. Many market experts from major fund houses and financial institutions offer their opinions.

The other source of financial news and information are newspapers like the Economic Times and Business Standard. These daily newspapers provide information about the performance of various stocks, news about businesses, analysis of the markets, political and social conditions that affect the economy, etc. There are business magazines which are published fortnightly or monthly. These magazines oversee the performance of listed companies and provide information that useful for traders. They also cover other news which may have a direct or indirect effect on the market. They watch the performance of sectors and industries. This can help traders and investors make decisions about particular sector stocks and make the most of the information.