How To Trade The News — Rule 5

Rule 4 (the role of economic data) mentioned in passing the importance of having a “mechanism for tracking news developments.” Now we need to dig into what this means exactly. Because trading the news requires being utterly and completely relentless in capturing new developments consistently, efficiently, and effectively.

So much happens in public policy that never makes it to the news cycle either because it is too technical or because the developments are overshadowed by more dramatic developments elsewhere.

The smart money knows the importance of tracking relentlessly key policymakers and action-forcing events (like summits and hearings), as well as more itinerant policy announcement events.

Technology makes it easy to access information, but the trick is in understanding which information is relevant in order to choose the best technology to support your relentless pursuit of good information to support your trading strategy.

The answer comes from dusting off Rule 3 (Be Strategic). Having identified which elements of the news and public policy cycle are relevant to your position, use that strategy to guide your choice of technology tools to help you monitor developments that will impact the position.

With all the information readily available, it is easy to lose sight of the fact that much of the information in the public policy context is…..opinion.

Do you really need to read every single op-ed and every single blog post on a particular issue? No. In fact, all that opinion can create a smokescreen that distracts or obscures from important actions taken by policymakers.

Video from the BCMstrategy, Inc. YouTube channel.

Quantifying cross-border policy risk using patented tech Founder & CEO #Data #NLP #geopolitics #DigitalCurrency #PredictiveAnalytics

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