Ben Warwick, an experienced trader and investment advisor, is renowned as the pioneer of Event-Trading. This trading technique, centered around market reactions to economic news releases, has led him to remarkable success. How did his technique achieve such success?
Not Following Trend Systems
Warwick ventured into the trading world while still a student at the University of North Carolina. His MBA degree served not only as preparation but also as motivation to delve deeper into surprising outcomes in the stock market. Through his research, he discovered that when a stock price exceeds analysts' and market players' expectations, it is likely to continue rising for up to 60 days. This concept was then adapted by Warwick to other markets like futures and forex.
The Concept of Event-Trading
Warwick developed his own trading method called Event-Trading. This technique does not adhere to market trend patterns but focuses on how markets respond to information, particularly economic news releases. For instance, during the release of labor data, he observes market reactions and determines the appropriate entry point based on his analysis.
The Importance of Research
As an investment advisor, Warwick prioritizes asset allocation strategies and investment portfolios. He also developed the Quantitative Equity Strategies (QES) system, which has been adopted by several leading financial companies and institutions. Warwick emphasizes the importance of research and understanding inefficient markets to achieve consistent profits.
For Ben Warwick, Event-Trading is more than just a trading method; it's a philosophy that relies on market analysis and reactions to economic news. With a systematic and unemotional approach, he has proven that success in trading can be attained through different approaches. For novice traders, his message is simple: conduct research, identify inefficient markets, and be prepared to generate consistent profits.
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