Stock Market trading is a multifaceted field with various elements influencing the market dynamics. Before leaping into the trading day, there are numerous factors that traders must consider and be aware of. Here are the top 10 things you need to be cognizant of before the market opens.
1. National News: The Core Driver
National news plays a significant role in shaping the stock market’s direction. Traders should always start their day by going through the major national headlines. Political decisions, economic indicators, and other significant national events can have a substantial impact on the stock market.
2. International News: The Global Influence
Just as national news is crucial, the importance of international news cannot be undermined. Global economic trends, international trade policies, currency exchange rates, and geopolitical events can greatly affect the domestic stock market. Therefore, keeping a close eye on international news is a must for every trader.
3. Key Resistance Levels of Major Indices: The Number Game
Understanding the key resistance levels of major indices is essential to predict market movements. It provides context to the numbers, helping traders understand the situation of each sector through their prices.
4. Major Announcements: The Game Changers
Investors need to be on the lookout for major announcements that could impact their investments. These could range from company earnings reports to regulatory changes.
5. Delivery Percentage of Stocks: The Trading Indicator
The delivery percentage of a stock is an important indicator of investor interest. Stocks with a higher delivery percentage are often considered for long-term investments.
6. Major Scientific Developments: The Future Shapers
Scientific breakthroughs can trigger significant changes in various industries. For instance, innovations in renewable energy can significantly impact energy stocks.
7. Movements within Your Portfolio: The Personal Impact
Monitoring the major movements within your portfolio is crucial. If stocks within your portfolio hit major highs or lows, it might be time to rebalance your portfolio.
8. Currency Market Movements: The Forex Factor
Currency market movements can have a significant impact on the stock market, particularly for companies involved in international trade. Fluctuations in currency exchange rates can influence the profitability of these companies.
9. Commodity Market Movements: The Raw Material Monitor
Movements in the commodity market can also impact the stock market. Changes in the prices of commodities such as oil, gold, and agricultural products can influence related sectors.
10. Political Events: The Policy Impact
Political events can have a significant impact on the stock market. Changes in government policies related to trade, taxation, and foreign relations can directly influence market trends.
In conclusion, understanding these factors can help traders make informed decisions and potentially increase their chances of success in the stock market. Remember, the stock market is influenced by a multitude of factors.