Why News-Based Trading Fails Most People

SRJahir Tech · Markets · 2025

Many beginners believe news drives markets. In reality, markets often move *before* news becomes public.

Trading based on headlines usually means reacting late.

Markets Price Expectations, Not Headlines

Institutions operate on forecasts, probabilities, and insider-level analysis.

By the time news appears on television or social media, price adjustment has already happened.

News Creates Emotional Traps

Positive news triggers greed. Negative news triggers panic.

Both emotions lead to poor decisions.

Good News Can Push Prices Down

If expectations were higher than reality, prices fall even after positive announcements.

This confuses beginners and destroys confidence.

Who Actually Profits From News

Institutions often use news as liquidity events — moments to enter or exit positions.

Retail traders become the opposite side of the trade.

What Works Better Than News

Markets reward preparation, not reaction.

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Disclaimer

This content is provided for educational and informational purposes only. It does not constitute financial, investment, legal, or professional advice. Markets, cloud platforms, and technologies involve risk and change over time. Always verify information from official sources before making decisions.