News and its anticipation in stock trading.

Almost every trader is familiar with the news trading strategy, which involves opening trades immediately after a news release.

But not everyone knows that sometimes the market reacts more strongly to anticipation than to the news itself, and exploiting this aspect in trading yields much greater profits than trading after the news release.

Therefore, when conducting fundamental market analysis, it's important to consider not only events that have already occurred but also those yet to come.

There are also public and hidden factors that should be considered when planning your trades on a given currency pair. Only then will you be able to reduce the number of errors when opening positions.

• News trading typically follows a fairly simple pattern: after the latest news release, its impact on the currency is analyzed, and if the impact is positive, a buy trade is opened; if negative, a sell trade is opened.

But sometimes currencies behave unpredictably, which happens because expectations weren't fully met, meaning the news wasn't as strong as expected. In this case, a pullback or even a reversal is possible trend reversal.  

Therefore, trading on anticipation is in most cases more effective than playing on the news.

• As a rule, it is known in advance whether the discount rate will be raised or lowered; in addition, there are data on the preliminary assessment of the trade balance and other economic indicators that may affect the exchange rate.

The market, waiting for confirmation of existing information, gradually moves in accordance with forecasts, and this is the moment when transactions are most attractive.

The date of the release of most economic news is known in advance, the time of their release is published Forex calendar, which is precisely the main tool of a trader using fundamental analysis.

The "Forecast" column is particularly useful, as it displays the expected change in the published indicator. This column has the greatest impact on the existing trend.

To open a trade, analyze the latest news, evaluate forecasts, and compare the results with the current trend. If the trend moves in line with the forecast, you can open a trade.

For example, in 4 hours the US unemployment data will be published, according to preliminary estimates it is believed that there will be a fairly significant decrease in the indicator, at this time the USDJPY currency pair is confidently upward trend - we open a buy deal.

It's all quite simple, because one of the stock exchange rules says: "Buy on rumors, sell on facts.".