Trading the News: Strategies for Steem/USDT

in SteemitCryptoAcademy16 days ago (edited)

Hello everyone i hope you all are good and enjoying your beautifull life after alot of research and hard work i am able to post my entry in this week 5 contest. in this contest is about the news in the trading market. how the news effect the crypto market and also it have positive and negative impect some time a good news can pup up the market and some time the bad news can drop the market. in this post i will also expain which tools i am using in my trading strategy. i will also talk about the risk management in in this post so let start

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ANSWER 01

NEWS BASE TRADING

The news based trading means making the trading decisions based on the important news that affect market and the price of crypto . In the cryptocurrency world this analys is very important because prices can change a lot when news is share. By staying updated, we can take advantage of these price movement and make profit. new is the backone of crypto market if any good news is publish it pup up the market and the is very higgh on the same if any bad news is publish it crush the market and the invester can loss there money.


CRYPTO TRADING

The crypto market reacts quickly to news, if its good or bad news. For example:

  • Positive news like or any update which is good for the crypto that can make prices go high.
  • Any Negative news, like scams or crackdowns, can cause prices to drop i will also share the real life example below .

BENEFITS

  1. Acting fast on good news can help you earn quickly and you can make a good and qick profilt by keep your self updated with news.

    Example:

When Steemit partner with TRON in 2020, Steem price that increase and the people start tust more on the steemit .

  1. News helps you understand which way the market is going upo and you can take a clear decission how to Trends cleaty.
  2. Price changes after news can give great chances to earn money because of Volatility Brings Opportunitie for traders

RISK OF NEWS BASE Tradings

  1. Some time Fake News in market manuplate the people and on that way the invester can lose there money by following the fake news
    Example now recentlly is the one of the koren exchange the delist the SBD temprary but in maket i see many people are start discussing that the the steemit price is going to crash and its going to be saturated with this fake news many invester sell there asssets with low price
  2. Markets some time we react too strongly, making price unstable
  3. the people some time If you late to act, thay can miss profits and face loss.

EXAMPLES RELATED TO STEEM/USDT

1. POSITIVE NEWS EXAMPLE

In the February 2020 Steemit is partnere with the TRON which is a positive news for steemit and tron has also a big name in the crypto market . This news made many people happy about Steem future. As a result the price of Steem went up. Traders who bought Steem early during this news made a good profit when its price increase here i am shareing the soure of news.

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2. NEGATIVE NEWS EXAMPLE

In the March 2020 there was some trouble news. Exchanges were accused of taking control of the Steem blockchain decision making system without proper consent. This created fear and uncertainty among investor. Many people started selling their Steem token which caused the price to drop quickly.

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3. NEUTRAL NEWS EXAMPLE

Sometimes regular update about Steemits progress don’t have a big effect on its price. For example when Steemit shares information about new features or small improvement the price may stay mostly the same because it does not change the markets overall opinion.

4. STEEM DOLLARS SURGE

On January 5, 2025, Steem Dollar the stable coin of the Steem blockchain saw an amazing price increase of over 106%. its a big suprise for the invester because of Its total market value reached around $47.5 million. that is a big jump show that more people are getting interest in the Steem platform and its special way of rewarding content creator. Source: crypto.news

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ANSWER 02

Now let me answer the question 2 which is about the impact of events on steemit as in my entire journey i have seen many events in my life some time its pup up the price of steem and some time its drop and low. so let me explain it in details

ANALYZING THE IMPACT OF NEWS EVENTS ON STEEM/USDT

I created my steemit account from 4 years ago in november 2021 I have been seen alot of event in my journey but one event bring a bing in steem price in my life and that happen when the steem partner with the TRON in February 2020 this event bring a lot of attention to the Steemit as it was a great step toward the of the blockchain with the TRON ecosystem. i personally i enjoy a lot and i was so exicted about this major integration. that time we recive our post rewards in steem and tron. after announcing this event many new invester buy the steem and they have hope to earn some profit.


IMPACT OF PRICE & MARKET SENTIMENT

When this news split the price of Steem/USDT was high and the market directly fell. Many traders and investors have seen this partnership as a positive development that people trust will lead to growth and wider adoption for Steemit . As a result

  1. PRICE ACTION The price of Steem go high within a short time . Trader who bought in early made good quick profit. and thay make alot of money after breaking this news
  2. MARKET SENTIMENT The overall mood were very positive with people talking excitedly about the partnership on social media and trading platforms.

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LESSONS FROM THE EVENT

This incident teaches me that a positive partnership can create strong purchasing opportunities. However it is important to analyze the long term effects not just the short term excitement. After the initial hype the market often cools down, and prices may stabilize or even drop somewhat. So we mentally prepare for every scenario
by considering such events and understanding the market reaction, I have learned to act quickly but cautiously, balancing short term opportunities with long term risk.

Source:Steemit Partners with TRON Foundation

ANSWER 03

NEWS BASED TRADING STRATEGY FOR STEEM/USDT

As a trader the news is very impactful for trading in this answer i will explain which strategy i am applying to trade and make a profits let me explain in details the criteria tool and risk management.


1. CRITERIA FOR SELECTING IMPACTFUL NEWS

I focus on news that is probable to affect the price of Steem . Thise are include

  • Partnership Announcements as the TRON partnership in the past and in future any new partnership announciment i always keep on eyes on it .
  • Exchange Listings added to a major exchange often boosts price like any new exchange list the steem coin it boost the price if it delist then it effect the price of steem also now recentrly one of the Kouren Exchange delist the SBD it affect the market very badly the price drops its approximately equal to 300 pkr.
  • Regulatory Updates: Positive or negative decisions about cryptocurrency can manipulate sentiment.
  • Community or Administration Updates: Changes in Steem blockchain governance are essential . if the community and administration is very impacting the price of steem

2. TOOLS FOR MONITORING AND ANALYZING NEWS

To stay updated I use the following news mediam


3. ENTRY EXIT & RISK MANAGEMENT RULE

Entry Strategy

  • Enter trades Right after impactful news break if the price is moving in the expecte direction.
  • Confirm the trend utilizing technical tools like volume spike and cand lestick pattern.

Exit Strategy

  • I Set a target profit (e.g. 5 10%) based on the price action.
  • If the momentum slow or reverses exit quicklly to secure profit.

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Risk Management

  • Use stop loss orders to limit potential losses. For example if I buy Steem $0.20 I might set a stop loss at $0.18
  • Never risk more than 2 - 5% of my total trading capital on a single trade.
  • Avoid overtrading during high volatility as emotion can lead to mistake.

Strategy Works

This strategy helps me work quickly while being safe from sudden reversal By focusing on reliable news source and having clear entry and exit and risk rules I can take advantage of opportunities without taking unnecessary risks.

ANSWER 04

MANAGEMENT OF RISKS IN NEWS TRADING

when i am trading i keep in mind the following things. as you all are know that news is profitable for but some time it come with Risk,. here i am explaning how i manage the risk and make make good money.


RISKS IN NEWS TRADING

  1. Slippage
  • Prices can change quickly after when the news break and by the time I place the order. the price may have already risen significantly but i also keep in mind some the price hit the higest level then start sdroping on that time when i relize that the price is going back to normal i sell me crypto
  1. Over reaction
  • The market usually react emotionaly to the news with prices rising or Falling rapidly only to stabilize later. for me i am taking it opportunity i make some money but i also keep in mind that not too much put in risk it is becuase some time the price is drop.
  1. Misinformation
  • Sometime fake and untruthful new spread and acting on it can possible to loss you money by following these news
  1. High Volatility
  • News event can cause big price swing creating it hard to predict the direction and increasing the chance of loses.

HOW I MITIGATE THE RISKS

  1. Plan Ahead
  • I avoid rushing into trade without thinking. Instead I set clear entry and exit rule base on technical analysis & market behavior i am not greeding to earn alot of money i set a perfect amount that i need to earn. when i earn that amount then i stop trading and i also keep in my when i loss some money then i stop trading and not tring to recover my lose quically. i alway work with cool and relax mind.
  1. Rely on Trusted Sources
  • I stick to reliable news platform like CoinDesk or official Steemit update . Double checking news before acting helped me avoid faling for fake information. i always verify the source of news and check it double.
  1. Use Stop Loss Orders
  • To limit my losses I alway set stop loss orders. For example if I buy Steem at $0.20, I might place stop loss at $0.18 to exit automaticaly if the price drops too much.
  1. Avoid Overtrading
  • I only trading when the news has a clear impact and the trend is strong. If I m doubtful I skip the trade to avoid unnecessary risks.
  1. Watch Market Behavior
  • Before entering, I checked for sign of overreaction or stabilization. This helps me decide whether to jump in or wait.

These steps help me trade with more confidence and reduce the chances of making impulsive or hasty decisions during periods of volatility Managing risks is just as important as finding opportunities, and it ensures that I am in control of my trading journey.

ANSWER 05

LEVERAGING TECHNOLOGY FOR NEWS TRADING

I think using the technology is very helpful for the trading but the necessary thing is we should use it correctly and on right time i am sharing here some tips and also using example hiow i use the these tools and expalin with example


HOW TECHNOLOGY HELPS

  1. Sentiment Analysis Algorithms
    • These tools scan social media news websites and forum to analyze market sentiment. For example if sentiment unexpectedly turns positive for Steem it could indicate a price rally
    • Example Tools:
      • LunarCrush Monitors social media trend for crypto currencies.
      • TheTIE Provide sentiment data specifically for crypto markets.

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  1. Trading Bots
    • Bots can execute trade automatically based on pre defined rules for example if there is new about steam break and the price reaches certain threshold the bot can instantly buy sell rather than manually I can do it
  • Example Tools:
    • 3Commas Allows me to automate trading strategy autamitaclly
    • CryptoHopper offers tool for new triggere trading.

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  1. Real Time News Aggregators
    • this platform verify the news from many source in real time and it take less time to to show the result it which helped me stay update without missing anything important I use them to quickly identify impactful news. and also verifiy the source and authincity of the news
    • Example Tools:
      • CryptoPanic A news agregator that flag major news and market sentiment.
      • Google Alert Can be customize to send update about specific t erms like “Steem news”

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Tools Are Useful

  • Speed: They process information fastly if I can do it manually its take alot of times and enegry and which is crucial in fastmoving markets.
  • Data Driven Determination0 Instead of depend on guess work I can use real time data and to take the decission and do my tread . its more good then blind trade
  • Automation: With bot I do not have to be set to my screen 24/7 reduce stress and human error bot is working perfectly.

Example Scenario with Steem/USDT

Lets say news breaks about a major partnership involving Steemit.

  • Step 1: I use CryptoPanic to get the news instantly.
  • Step 2: I check LunarCrush to see if sentiment around Steem is rising.
  • Step 3: If both indicate a positive trend my trading bot on 3Commas might managea buy order if Steem price breaks above $0.25.

i am sure guys learn alot form my this post by using technology allows me to trade more confidently and without fear . While these tool do not guaranty to make profits they certainly improve my ability to navigate the fast paced world of news trading. but it the end i will advice you dont relly on just tool some time these tools are fail to give you the correct result. these tool are just guide you but take risk on your own not relly on tools.

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