News Era Trading Techniques: Traders Who Can’t Read Politics and Economy Won’t Survive

The era where you could win just by looking at the charts is already a thing of the past. Now the market moves with news and statements. Government policies, a word from the Fed, and a single post from Mr. Trump can overturn the market in minutes. Trading without following world events is like venturing into a rough sea without a compass.

Being quick to grasp news and having the ability to read the flows of politics and economy are the keys to survival.Traders who do not follow Trump’s O (formerly Twitter)—isn’t that like trading blindfolded?Are you really keeping up with “the now”?

? What is the immediate effect of news on the market?

In the modern market, the speed of information transmission itself is a risk. Through O (formerly Twitter) and breaking news, a single word from a dignitary can instantly shake currency, stock, and commodity markets. Algorithmic trading seizes the initial move, and individual investors are increasingly hurt by “information lag.” Traders who ignore news are swallowed by waves without realizing it. To avoid that, which news do you monitor and at what speed?

? Is technical analysis no longer effective?

Technical analysis remains important, but it alone is not enough. Moving averages and RSI are instantly broken in the face of a news storm.Especially at the moment of statements from Trump or the Fed chair, past data loses meaning.

Technical analysis is a “tool to read the shape of waves,” but if you don’t know the wind that creates those waves—namely the news—you're unable to determine the direction. Does your chart reflect global movements?

? Those who control information control the market — alerts and monitoring systems

Monitoring information is the lifeline of trading. In addition to the reliability of sources like Bloomberg and Reuters, the timeliness of X (Twitter) is indispensable. Key speakers (Trump, Powell, Biden, etc.) must be followed. Tariffs, interest rates, employment data, geopolitical risks — none can be ignored.

Know the schedule of speeches and economic indicators, set alerts. Skipping this is like going to war unprepared. Which information sources are you monitoring now?

? Scenario analysis and position design

Preemptively anticipating the content of news — this training decides win or loss. If Trump says tariffs will be raised? If the US-Japan interest rate gap narrows?For each scenario, imagine how the market will move and prepare accordingly.

Keep positions light before a statement, and after the statement enter only after you have identified the direction. Traders who cannot draw scenarios become reactive, merely chasing after movements. Are you a reader of the market, or a follower reacting to it?

? Risk management — the minimum condition to survive

In news-driven markets, risk management is everything. Wide stops based on 2–3 times ATR, position reduction, and hedging with negatively correlated assets (yen, gold). Traders who neglect this are eliminated in one blow.In particular, sudden statements like Trump’s turn “unknowns” into everyday matters.

Courage to observe with small positions is also necessary. Protecting rather than attacking is often the fastest way to preserve capital. How often have you experienced an unforeseen crash?

? Practical examples and the “second move” strategy

Right after a dignitary speaks, algos move instantly. Jumping into the initial move is high risk. As the market proverb says, “don’t catch a falling knife.” Following sells during a plunge or hasty contrarian buys tend to fail. It is more prudent to wait for the consolidation and target the second move; the same applies after earnings announcements where the initial volatility settles and a trend forms.

The important thing is not to panic even after obtaining information.Right after a big move, spreads widen and slippage is likely to occur, resulting in less favorable fills than expected.Resist the fear of missing out (FOMO) and wait according to your plan, and you will ultimately endure.

? Summary: Today’s trader looks at information

Traders who ignore politics, economics, and world affairs have no place in the market. News is not just background; it is the engine that drives price movements. Some topics in my articles or videos may seem unrelated to investing. Some topics may not have a direct impact.

However, presenting current events with hypotheses and insights means that somewhere in the future that information could become the key that connects dots.If kept in the back of your mind, it can become a material for judgment when needed. The importance of information sources will be something everyone will keenly feel in this information-driven society.

If you’re curious about any information, please do follow. That small awareness might mitigate risk and provide unexpected insights.