Some traders believe that news only matters for long-term traders, assuming that short-term price movements are purely technical and unaffected by economic releases or world events. However, news impacts markets across all timeframes — often with explosive effects in the short term. Ignoring news risks being caught on the wrong side of major price moves, even for intraday or swing traders.

The belief that news only matters for long-term traders dangerously underestimates how sensitive markets are to real-world events.

Why This Myth Exists

Several reasons lead traders to think news is only relevant for long-term investors:

• Focus on technical analysis: Many short-term traders rely solely on charts and indicators, believing news is irrelevant noise.
• Desire for simplicity: It feels easier to ignore news and focus purely on price patterns.
• Misunderstanding news impact: Some traders do not realise that even small announcements can trigger massive intraday volatility.
• Short-term mindset: Believing that trades will be so quick that news events will not have time to affect them.

However, this approach can lead to painful surprises when markets react violently to news.

How News Impacts Short-Term Trading

News influences markets on every timeframe:

• Economic releases: Data like Non-Farm Payrolls, inflation figures, and interest rate decisions cause immediate, sharp price movements.
• Political developments: Unexpected events like elections, wars, or government policies can trigger fast, major market shifts.
• Corporate news: For stock traders, earnings reports, mergers, and scandals cause huge volatility within minutes.
• Central bank commentary: Speeches and statements by central bankers can move currencies, bonds, and indices within seconds.

Thus, the idea that news only matters for long-term traders is not only false — it is risky.

How Short-Term Traders Should Handle News

Successful short-term traders use specific strategies to manage news risk:

• Check economic calendars daily: Know when major announcements are scheduled and avoid entering new trades just before them.
• Adjust risk: Use tighter stops, smaller position sizes, or stay out of the market entirely around high-impact news.
• Trade news reactions carefully: Some traders specialise in trading the volatility after major news, but only with strict risk management.
• Stay flexible: Be ready to adapt quickly when news causes unexpected market conditions, such as sudden trend reversals or massive spikes.

Managing news risk actively protects both capital and emotional stability.

Examples of News Impact on Short-Term Traders

• NFP release: A trader holds a EUR/USD position without realising Non-Farm Payrolls are being released — a 100-pip move stops them out within seconds.
• Central bank surprise: The Swiss National Bank unexpectedly drops its currency peg, causing massive losses for unprepared short-term traders.
• Company earnings: A day trader holds a stock through earnings without checking — a bad report gaps the stock down 15% overnight.

Each example highlights how dangerous ignoring news can be, even for very short timeframes.

Conclusion

It is completely false to believe that news only matters for long-term traders. News affects all traders, regardless of timeframe, and often has its most dramatic impact within minutes or hours of release. Short-term traders must respect economic events, manage news-related risks carefully, and stay aware of the broader context in which they are trading. Professional trading means mastering both technical and fundamental awareness.

To learn how to trade with a professional edge by managing both technical setups and news-driven volatility, enrol in our expert-led Trading Courses today.