Real-Time News Services: Do They Matter to a Serious Trader?
There are two sets of traders out there it seems.
The first set of traders don't worry at all about the news of the day. They are interested only in graphs and charts and technical analysis, and if you asked them, would have no idea what is going on fundamentally with a stock. They are only interested in breakouts, bases and breakdowns. To these traders, news services are simply a waste of time. Give them good screening software and they are set.
The other set of traders are your more fundamental daytraders. They are the type of traders that scour the news in the morning and throughout the day, identifying possible momentum plays that they can get in and out of. Did a stock just announce really positive news and is gapping up? Did XYZ just announce a surprise spot secondary? Is XYZ running up into its earnings report after the bell? To these traders, a strong real-time news service is of the utmost importance, and is an invaluable tool in their trading arsenal.
When you are a trader, you are running a business. Just like with any other business, you need to watch your expenses. Is an expense really necessary? If you didn't have this expense, would your business suffer or would it make no difference at all?
If you are a trader that focuses mostly on technical analysis, then I would say that a real-time news service is probably an unnecessary expense. If you want to keep up to date on what is happening, you would probably be better off leaving CNBC on during the day or signing up to an inexpensive briefing.com account. If you are a news-driven, fundamentals type of daytrader, then a good real-time news service is an absolute must, and you should find the best and go with them. Getting a news story 30 seconds before most other people will pay for itself rather quickly, and even a $300-$400 monthly expense would be easily justified.
Filed under: Stock Market Education | General Knowledge