Exordium;

Welcome

When I started to learn about trading the most popular advice is to follow the news. I was wondering why but I ignore it and continue to explore until I have a drink with a multimillionaire businessman and trader. I tell him about my crypto thing in short tenses as a suggestion but he said that he doesn't like cryptos because they aren't accepted as real currencies and he works only with legit things. Then he shows me his phone and said that it's easy, just buy and go follow the news.

That's why I decided to write this article. I need to explore more about how news impacts markets and how to use them to be better traders.

So, if you are interested you are welcomed to join me 😇

Why and How?

News affects market prices, especially Crypto!

News, they know what's going on, right?

When some big portal publishes an announcement about the new big plan of some company, humans see that as an opportunity and start investing. When humans invest in something, then the price is rising.

Crypto Market is a different story but the same principle.

When CoinDesk says something good about some coin, the price of that coin will jump at least 10% or if the announcement is bad then the price will fall.

Now, there is something important to know...

If CoinDesk says anything about Bitcoin, the price will be pretty much the same but if the article is about some smaller project such as Uniswap, then we can feel price changing.

The reason is market capitalization.

When to trade?

How to know when to buy or sell?

Let's say CoinTelegraph published an article saying that Stellar will realize the digital Euro on 12. December (it's realized today) in this example our dead-end is 12. December and even now prices will rise slowly because traders who act now already buying Stellar's coins.

We can buy right before updates but sooner is better because it's cheaper and the profit will be bigger.

Of course, there are some skills needed to see the opportunity in the news. Some of them, in many cases, wouldn't make a big impact on the price and too will lose one of these two; Time or Money.

You need to analyze the content. How is important that update and what people think about it in comments or is that project active, what they did recently to see would other traders believe in it.

Conclusion and Outro

Nothing is easy 🙃

This strategy is extremely important and you can't be a trader without knowing what's going on, so read the news and follow market prices after to see how it works then go and trade.

I think it's a nice article and if you think too, show some love by leaving like comment and tip!

Thanks for your priceless attention and have a good life!