Download - Profit from the News in Day Trading

PROFIT FROM THE NEWS IN DAY TRADING

By www.ProfitableTradingTips.com

http://www.profitabletradingtips.com/


Many investors miss out on stock opportunities

because pertinent news breaks when they are

working at their day jobs.




For those whose work takes place at the trade station it is common to profit from the news in

day trading.




The amount of profit from the news in day trading will commonly depend upon how quickly one finds the news, how

clearly one understands the impact of the news,

and how rapidly one enters trades. By

www.ProfitableTradingTips.com



There are a number of profitable day trading strategies

, all of which can be applied at times in order to profit from the news in

day trading. By


http://profitabletradingtips.com/trading-investing/profitable-day-trading-strategies

http://profitabletradingtips.com/trading-investing/profitable-day-trading-strategies



The first part, however, is to understand the news.





Understanding the News


In order to routinely profit from the news in day trading the trader

needs to understand what the news means in regard to stocks, commodities, or

currencies that he is trading.




For example, a trader who has analyzed the

fundamentals of a stock that is a takeover target

will have a better grasp of how a stock price will react when a hostile takeover is actually

announced. By www.ProfitableTradingTips.com



When the cost of crude oil goes up it raises the cost of doing business in many

industries.




Having a clear idea of just how much profit XYZ

Company will lose due to higher energy prices will

give the trader a clear idea of how much XYZ

stock will trade for in the near future.




Being at the trade station when the news breaks and understanding the news lets you make the right trade and profit from the news in day

trading. By




If you are adept at range trading in day trading you will feel comfortable with anticipating the new range that XYZ will trade

in and profit thereby. By


http://profitabletradingtips.com/trading-investing/range-trading-in-day-trading

http://profitabletradingtips.com/trading-investing/range-trading-in-day-trading




Technical Analysis of Market Reaction


Although you may have a clear idea about how

much higher energy costs will hurt XYZ




Company the broader market may not.

As such there will commonly be a period of

volatility in XYZ stock price.




Using technical analysis to gauge market

sentiment a wise trader can profit from the news

in day trading.




Scalping in day trading is a viable strategy when

you are able to do rapid technical analysis of the market response to news

about XYZ.


http://profitabletradingtips.com/trading-investing/scalping-in-day-trading

http://profitabletradingtips.com/trading-investing/technical-analysis




Predictable Patterns


Often times it is fairly predictable that the price of XYZ will overshoot in response to the news, over correct, and then finally settle into a new

trading range. By




Here is where technical analysis is helpful and

where being at the trade station for the

duration of XYZ stock volatility is essential.




While otherwise successful traders and investors may prosper from their efforts it is the trader whose day

job is at the trade station that most

commonly can profit from the news in day

trading. By www.ProfitableTradingTips.com



The issue is often more one of being there that of having deep insight. Good news drives stock prices up and bad news

drives them down.




Being there at the right time allows the day trader to profit from short term market

inefficiency which is common after breaking

news about a stock, commodity, or currency.




Often times ninety percent of

successful stock trading is being there when the

news hits.


http://profitabletradingtips.com/profitable-trading-tips/successful-stock-trading

