Hi this is my 1st post.
I am a beginner and havent traded any $ as yet due to lack of funds and dont want to begin until i have at least 10000. However i have been reading for about 18 months.
I have flogged the asx site and read books from Alan Hull and Martin Roth and a few on technical analysis. I am beginning to have a good grasp on ratios and some technical indicators so am now reading up on money management and risk aversion techniques.
From all the reading i have done i still dont for the life of me understand how people day trade on the news, anouncements and economic indicators etc. What are they looking for to make these decisions. Do they have to know a company or sector inside out or have a very deep understanding of domestic and global economics. I always here of little pieces of info that people make there buy and sell decisions on such as: an option series coming to an end, mergers, etc (i cant think of anymore at the minute). Where do all these people get their knowledge from, are there books out there on what information affects different companies and sectors and how the market moves between different sectors and in response to different types of news and anouncements.
Are these people just highly experienced at all different types of trading and how the market moves for various reasons or are they just having an out and out punt on what is going to happen. They seem to be devoid of any style, stratergy or risk management.