News trading is a strategy that involves trading based on market reactions to news events, such as economic reports, geopolitical events, or central bank decisions. Traders who engage in news trading aim to capitalize on the volatility that often follows these events. Key aspects of news trading include: 1. _Event anticipation_: Traders anticipate the potential impact of an upcoming event on the markets. 2. _Market reaction prediction_: Traders predict how the market will react to the event. 3. _Quick trade execution_: Traders execute trades rapidly in response to the event. 4. _Risk management_: Traders must manage risk carefully, as news events can be unpredictable and volatile. Common news events that can impact markets include: 1. _Interest rate decisions_ 2. _Employment data_ 3. _GDP reports_ 4. _Inflation data_ 5. _Geopolitical events_ (e.g., elections, conflicts) News trading requires a combination of market knowledge, analytical skills, and quick decision-making.