Market news trading easily leads people into two common misconceptions. The first is believing that having information in advance can ensure stable profits; the second is thinking that major events will inevitably trigger intense market movements. In reality, experienced traders know that news is never a free lunch. It’s more like a high-difficulty test—you need to execute your pre-planned trading strategy under the triple pressure of insufficient information, sharp price fluctuations, and highly amplified market sentiment.

Dividing major events into three main categories makes it clearer. On the macro data level, there are CPI, non-farm employment data, central bank interest rate decisions, etc.; on the industry and policy level, including regulatory developments, spot ETF launches, major litigation cases, exchange rule adjustments, etc.; on the project and platform level, such as mainnet upgrades, token unlocks, black swan events, security incidents, maintenance shutdowns, or liquidation risks. Although the classification seems extensive, the underlying logic of price movements is actually consistent—markets tend to react and position themselves in advance before the event, volatility is greatly amplified at the moment of occurrence, and after the event, there is often a reversal or a sentiment correction. Essentially, your profit is not about predicting the direction but about understanding the structure of these three time windows and executing risk management effectively.

One core principle must be repeatedly emphasized: news-based trading is fundamentally not a prediction game; it’s a game of position management combined with exit mechanisms. Because no one can determine in advance whether good news will truly push prices higher or cause a sell-off; no one can precisely predict whether the market will first break support and then rebound or simply trend upward unilaterally; no one can be completely sure whether the trend starts only after the news is announced or if the main trend has already played out in advance. Betting on a single direction with large positions is essentially gambling; using a scientific risk control framework to plan layouts and set exit rules is the real business that can be repeatedly executed.

So, what exactly should one plan before an event? Many people’s understanding of this concept actually deviates from its original meaning…