We have seen the macroeconomic climate in the UK worsen considerably throughout 2016, as inflation has soared, earnings have stagnated and the national savings rate has continued to fall. In fact, the interest paid on fixed-rate Isa's tumbled by 25% in a single month during April, creating a climate where it is increasingly difficult for individuals to save their hard-earned money.
This requires a change of outlook from citizens who are looking to build wealth, as they strive to speculate and increase their earning potential rather than steadily accumulating over time. This can also be more easily achieved in the modern age, with entities like the financial market now far more accessible to aspiring traders.
How Can the News Help You to Make Money on the Financial Markets?
The challenge, of course, is for aspiring or novice traders to build knowledge and develop a strategy that can deliver sustained returns. Much will depend on your precise choice of markets and asset classes, but in most cases investors can use real-time news developments and event to inform their trades and achieve success.
So how does the news, or more specifically the comprehension and analysis of specific events, help you to make money from the markets? In simple terms, it helps traders to build relevant and real-time knowledge, as live reporting relays the prevailing macroeconomic climate and its impact on specific markets. From here, it is possible to understand both the current status of individual marketplaces and their potential for near-term growth or decline, which drives more informed trades and the development of a more effective strategy.
Not only this, but it is now relatively easy for even novice traders to leverage news sources and enhance their real-time trading activities. This is thanks primarily to the sustained evolution of online trading platforms, which now include a host of live and historical analytical tools alongside real-time news feeds. The result of this is a focused conduit of data and in-depth analysis, which is easy to access and relay through simple graphics. The fact news can also be delivered directly to trading platform interface or inbox also helps, as it may create new opportunities for growth that may otherwise have been missed.
The Bottom Line: Is News a Trader's Best Asset?
Over time, having access to a reliable and live news source may also create opportunities for you to diversify your portfolio and seek out both short (and long) term investment vehicles. This is yet another way in which having access to a live news feed can help you to make money in the modern age, and along with a comprehensive suite of analytical tools it may be considered as a trader's best asset in the quest to achieve financial success.
As ever, however, much will depend on how you leverage news and your precise execution if you are achieve success. Even the most advanced technology is only ever as effective as the individuals who use them, so you will need to use all of the tools at your disposal if you are to effectively translate data into insight. Knowledge is therefore key, while it may also be wise to hone your strategy and the precise role that news plays within this by using a demo trading account before trading for real.