Any chance I can get some guidance?

4

4Rings2Snails

Related to trading on the news? Jeesh, searching everywhere and I cannot get a definitive answer to what I thought would be a commonplace strategy?

I'm familiar with the markets, but not as intimately close as most of you folks here on the forums are. I manage a little under 60 million of OPM through my BD. Mostly mutual funds, IRA's and the like.

I have about $50k in discretionary funds that I want to put to work for myself and I can't seem to put my gameplan together.

All I'm looking to do is jump on a few stocks a week based on positive news that hits the wire. Maybe stay in for a few minutes/hours and then pull out.

Is this that uncommon of a strategy? Now I know that most of the action on the types of trades that I want in on all occur basically in pre and post market activity, but shit I'm not sure where to begin.

What news service do I subscribe to so that I can see the breaking news at the same time the institutional and pro traders do?

What broker has the best platform for pre/post market trading?

And finally, is there any particular book or site that focuses on trading in this fashion? BTW: tradethenews.com didn't impress me whatsoever...

Not sure if any of you have the time to respond to this request but I thought that maybe there's someone out there that can shed some light for me.

Thanks,
Chris in Buffalo, NY
 
I have met only one other person who trades on news, and he lost money pretty consistently. Eventually, he gave up.
 
Quote from blackchip:

What kind of news?
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chip: Did you noticed discrepancies in his post. He is familiar with then market, and manages a large sum of money. Who in his right mind would give money to be managed by someone who is just familiar?
 
If you seriously want to trade the news (e.g. positive/negative earnings) at least be patient enough to stay in your trades for a couple of days until the full potential of the move is exploited. You would not even need to care about news items if you were trading the wiggle-waggle intraday!
 
It did seem a little suspicious. Could be a CPA with index funds. :D

Quote from riskfreetrading:

chip: Did you noticed discrepancies in his post. He is familiar with then market, and manages a large sum of money. Who in his right mind would give money to be managed by someone who is just familiar?
More...
 
Quote from riskfreetrading:

chip: Did you noticed discrepancies in his post. He is familiar with then market, and manages a large sum of money. Who in his right mind would give money to be managed by someone who is just familiar?
More...

I went back and re-read my original post, and yup, I didn't "noticed" any discrepancies whatsoever. Ya see riskfree when you're NOT a broker, such as I, and you're smart about your time, you let the management companies truly do the managing of your client's money resulting in more time generating new commissions elsewhere.

Simply stated, I'm familiar enough to know where to put my client's money based on their risk tolerences and time horizons. No desire to ever get my "7" as there's too many people in my business who have to use their E&O... I'll pass on that shit.
 
Quote from rwk:

I have met only one other person who trades on news, and he lost money pretty consistently. Eventually, he gave up.
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Well, its not what I wanted to hear but I do appreciate your input.

Truth be told, I just wish someone can tell me how you can't make money by jumping on a company that makes an announcement e.g. that they're about to be aquired for $70m, or when a company states that a court just ruled in their favor that said other company must pay them $150m over 5 years and the stock shoots up 28% in pre market activity.

WTF? Why is getting involved in something like this so difficult? I'm thinking that person you know who traded on the news and lost just got greedy or simply wasn't incorporating the techniques that I'm seeking out.
 
But you don't even know what techniques you're "seeking out". :D

Jus sayin.

Quote from 4Rings2Snails:

I'm thinking that person you know who traded on the news and lost just got greedy or simply wasn't incorporating the techniques that I'm seeking out.
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