what is a news trader 
a news trader is a trader or investor who makes decisions based on news announcements breaking news economic reports and other reported events can have a short lived effect on the price action of stocks bonds and other securities news traders try to profit by taking advantage of market sentiment leading up to the release of important news and or trading on the market s response to the news after the fact understanding news traderthe adage buy the rumor sell the news recognizes that rumors have one effect on a security s price and news can have the opposite effect for this reason news traders focus on trading in the time leading up to the news or immediately after when the market is still reacting to the news these periods are characterized by a high amount of volatility that creates an opportunity to profit news traders try to profit from the timing or likely content of scheduled news announcements for the most part when the news is scheduled as with earnings releases or federal reserve meetings news trading is more about playing the odds on the likely significance of the announcement in fact the federal reserve has tried to soften the market impact of its proclamations by foreshadowing every major policy decision well in advance but even these policy signals have become tradable events 