4 Reasons You Must Know On Why The Markets Move Daily...

Take this in consideration, every time you trade…

We all know that predicting the market movements is very complicated.

In fact, this is why you and I dedicate dozens of hours analyzing charts, numbers, etc…

However, I made a compilation of few of the factors that moves the markets in our daily basis.

1. Foreign Economies

Prior to the opening trade on the "Big Board," equity markets in Asia and Europe have already finished their trading day.

Multiple market, political and economic news have occurred before the NYSE opened.

(Pay attention if you see major negative activity in a foreign market that impacts your sector)

2. Economic Data

I’ll put it simple here…

Pay VERY much attention to:

• FOMC meetings/news

• Inflation report (CPI, PPI)

• Any other economic data could also affect

(Take notes on what days these reports may be happen so that you take it in consideration before trading)

3. Analyst Ratings

An analyst might spread an intraday note that can have a significant impact on a given stock or sector.

For instance if a large company has just been upgraded or downgraded, try to judge the potential effect on the industries or markets as a whole.

(As a tip, remember to scan financial websites or watch business reports on television)

4. Social Media

Social Media has transformed the way people we do everything specially invest…,

Therefore, if a “big name” disseminates a bullish or bearish comment about a company throughout the trading day, this can have a huge impact on its stock.

These “meme stocks” are also a consequence of these random news appeared in social media that “interestingly” have a strong movement in the markets.

Now, there are obviously more reasons on why the market itself moves.

However, these are the main ones that you should take in consideration…

I recently uploaded a video on YouTube, fully dedicated to Risk Management…

Check the video and let me know if you have any question.

I’ll see you tomorrow with the market news for the next week. 😎

Rooting for you,

Paper Gains.