📰 From Read FNM News 🗞️
How to get benefits from reading financial market news & global disasters with world surprising occurs to analytics of any assets to get it intrinsic value to trading ?
Integrating financial market news and global events into asset analysis involves both immediate trading tactics and longer-term investment strategy.
Following flowchart outlines key steps for filtering information & acting on it.
🔍 Step 1: Filtering & Analyzing News
The effectiveness of your strategy starts with how you consume and process information.
· Be Critical of Your Sources:
Treat all information with skepticism. Financial blogs often embrace the "golden rule of tabloid journalism: simplify, then exaggerate" .
A significant portion of content, including the top search results, is sponsored advertising .
· Separate Fact from Opinion:
A study found that fewer than half of people can consistently distinguish factual statements from opinion .
Look for multiple, reputable sources to cross-reference facts and avoid echo chambers .
· Determine its "Life Expectancy":
A powerful filter is to ask
"Will I still care about this in a year? Five years ? Ten years ?" .
Most headlines are noise. This helps you prioritize fundamental shifts
(like long-term climate patterns) over transient noise (like daily market chatter).
📈 Step 2: Integrating Events into Asset Analysis
News and events impact assets in different ways. Understanding the mechanism is key to valuation.
1. For Commodities & Supply Chains:
· Events like natural disasters have evolved from sporadic shocks to a persistent structural factor shaping commodity markets .
· They cause price spikes by disrupting supply, transport and logistics.
Examples include droughts reducing crop yields, hurricanes shutting down energy production, or floods halting mining . These can create both short-term trading opportunities and necessitate long-term.
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