Using Futures News ...to Profit in Trading
Don't drown in a sea of Futures News.
Learn the best online resources to tap, allowing you to quickly navigate, pinpoint and selectively use commodity news to your trading advantage ...giving you another tool to employ in your futures trading arsenal.
COMMODITY NEWS OVERVIEW In this section, we'll discuss news, its' relative value to your commodity trading style, several varieties of futures news available to you, and how to narrow your focus so as not to get overly distracted or buried with news overkill.
We'll cover the following:
- Commodities and Futures News - Help or Hindrance?
- Commodity News - Various Types and Sources
- Narrowing Your Focus - Future and Commodity Market News
- Major Commodities News Sources
Commodities and Futures News... ...Trading Help or Hindrance?
The answer to this question depends somewhat on whether your style of trade analysis tends to favor a fundamental or more technical approach.
In general, 'fundamental' analysis traders place a high premium on analyzing multiple variables called "fundamentals", gathered from sources, data feeds and reports. "Fundamental" news if you will.
Technical analysis traders place their value on time and price action in current and historical price charts and chart formations, and formulate their trade strategies accordingly.
FUTURES FUNDAMENTALS
Fundamental futures analysis attempts to look at and evaluate how these fundamental news factors individually and together affect commodity market prices and direction.
Fundamental traders tend to minimize the need for studying price action and price charts, feeling the real clues to future commodity market moves are to be found in the specific commodity and markets fundamental variables.
Commodities and futures news provides the fundamental trader up-to-date information and news of numerous fundamental factors affecting the specific commodity and market he or she is interested in.
Based upon analysis of this news and the fundamentals, these traders base their trading strategy around that information.
TECHNICAL ANALYSIS TRADING
"Technical" traders analyze price action by focusing much of their attention on studying commodity price charts and various bullish and bearish chart patterns, within the context
of time (daily, weekly, monthly, annually and historically)
They generally pay far less attention to and often invest far less time in evaluating the news of numerous fundamentals affecting a specific commodity.
Technical traders tend to believe that fundamental variables are already built into the current commodity market price, and that historical futures price charts simply reflect the combined effect fundamental variables have had on historical commodities price movement.
So, for these traders, the sheer volume of fundamental commodity and futures news about a specific commodity - information that is always changing - represents a distraction of
sorts and a drain on the technical traders time... ...away from his primary focus on analyzing price action, price formations and price charts.
For them, the clues to future commodity price moves will be found in the charts and patterns
...not in all the commodity and futures news.
BE OPEN MINDED - USE ALL THE TOOLS AT YOUR DISPOSAL
It is in a commodity traders best interest to use ALL the tools available to them, within reason and the parameters of their respective trading strategy.
The ongoing question is which is better and/or more effective? ...Technical Analysis or Fundamental Analysis?
A better question may be "How much commodity and futures news do you feel you need in your futures forecast analysis?"
Regardless of which camp you fall into, I think a wise approach is designing a trade strategy with multiple potential trade set up indicators and confirmation points for trade entry and exit...and factoring different sources of bothtechnical analysis data and fundamental commodity and futures news
into your trading decisions.
Commodity News ...Various Types and Sources
Commodity news comes in many flavors. It all depends what you are looking for. Some of the more popular varieties include:
- CHARTS AND QUOTE INFO Live charts, 5 minute delayed charts, 30 minute delayed charts and various price quotes
- ECONOMIC NEWS Commodity news reports like Unemployment data, Interest Rate changes, Retail Sales data, Agricultural yield/harvest info, or other more minor reports.
- BROKER NEWS Brokerage house spokespeople or industry analysts specializing in commodity news market commentary
- COT REPORT The Commitment of Traders report containing futures contract open interest and volume data
- COMMODITY NEWSLETTERS / EZINES Many trading newsletters and ezines are free, others are subscription based
- WEBSITE NEWS/INFO Broker and related financial/investment websites offering some commodity news
Invest some time and visit different commodity news sites and informational sources. You'll find some you prefer much more over others, whether for readability/scan-ability, presentation, broader or more detailed coverage, analyst perspectives, etc. You can save time time by using RSS (really simple syndication). RSS feeds are a great way to get the commodity news you want and only that, delivered daily, right to your desk or laptop. It's a great timesaver and information manager
And you can often specify certain receiving only types of information - for example, - only info on the Gold futures market - allowing you to make the best use of your time, without having to wade through several sites and futures news sources looking for it.
Narrowing Your Focus on Future and Commodity Market News
When it comes to staying abreast of commodity futures news, a good suggestion is to focus your attention on a select number of trading news resources.It's challenging enough trading in multiple markets...particularly if trading short time frames as with futures day trading. Much less trying to stay on top of multiple future and commodity market news feeds and data. Over-extend yourself too far by trying to stay up on too much commodity futures news and you'll spend more time reading/analyzing than trading! It's about achieving some balance between the two. Bottom line, regardless of they type of commodity futures news you are looking for, you'll want to narrow your focus to select news resources, so as not to become overwhelmed by news volume. Add in some complementary and credible commodity futures news, and you'll be looking at potential futures trades with a more critical eye, evaluating your analysis and learning from it in a more comprehensive fashion.
Major Commodity Market News Sources
You noted earlier, the varieties of commodity market news available to commodity traders. Below is a short list (not all inclusive) of several high quality websites providing commodity trading news and information.Use it to start building your own personal reference source of commodity news and related financial information to assist your futures trading analysis.
Below is short list of solid commodity and financial market news sources:
This list of commodity market news sources is by no means complete, but does highlight some of the: - major news / financial news channels - main sources for breaking futures trading and commodity news - vertically-oriented futures sites, and - major online investment sites covering non-commodity investment/trading vehicles
This concludes the content on futures news, how to apply it to your commodity trade evaluation/strategy. Use it to your advantage!
(Futures and Stock/Investment Resources):
To visit the Wall St. Journal Online, click here
To visit the Reuters.com financial news page, click here
To visit the Bloomberg.com website, click here
(Futures News Sites, Broad Coverage):
To visit the Chicago Board of Trade website, click here
To visit the Forbes.com Commodities page, click here
To visit the Commodity Channel website, click here
To visit the Futuresource website click here
To visit the Trade the News Squawk page, click here
To visit the Trade the News website, click here
(Vertical Futures News Resources):
To visit the Statpub.com website click here
To visit the Platts.com website click here
(Broad Stock/Financial/Investment Sites):
To visit the Motley Fool financial website, click here
To visit the CBSMarketwatch.com site, click here
To visit the eFinancial News website, click here
To visit Barrons Online site click here
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