July 28, 2020
Market recaps are important for two reasons. First, they keep you up-to-date on the most important events that occur throughout the trading day. Second, they help you make informed trading decisions for the days that follow.
Market recaps are written by professional asset managers or equity research analysts who follow most aspects of the market and have a broader understanding on what is going on. Usually, the best time to look at these recaps is when the market close at around 5pm EST. This ensure all of the day’s information is added into the reports. That being said, let's dive into where to find these recaps and how to use them.
Since I started trading, I’ve found Charles Schwab’s market updates to be the most informed. Additionally, you could look through Eoption’s market recaps, Value Line, and Edward Jones. Another source where you can get find these recaps is by creating an account with a brokerage. One of my favorites is Interactive Broker since their platform offers daily insights as well as several other data points that are essential for carrying out good trading practices. To be fair, most of the brokerage firms offer market insights to their clients for free, so no matter who your go with, you will be able to get a lot of information that will assist you with your trading strategy.
Let’s break down how market recaps are constructed.
I recommend reading these market recaps as they have helped me stay on top of markets tremendously, especially when I was not focusing on investing as a full-time job. If you are a day trader or an equity analyst, it is your full-time job to read market news and have great sources such as the Bloomberg terminal or other comparable platforms. When you are a retail trader whose full-time job is not investing, then these recaps can help you get all the knowledge that you will need to know what your next step will be when you invest.