Who is trading stocks based on news soley?

S

Sundog

Is anybody successful with it ? I know it is an old topic, but the last thread on ET is some time, ago.

Brgds

Sundog
 
To me it depends on what news we are talking about. FED's report, GDP, and similar basic reports , Yes I do trade based on them. any other news I usually wait to see what the market reaction is first and then make a decision.
 
The Forex market is excellent to trade from for Fundamental news. The market can move over 100 pips when GDP or Nonfarm Parolls are read. Its best to be on the right side of the market after the news is read.
 
When I used to daytrade stocks, real-time news plays & CNBC pumps were fairly profitable... this was particularly so when market conditions were buoyant, since there was a greater proportion of dumb money with no sense of entry timing, who would propel the stocks to wild gains within minutes...

But I have now moved away from stocks, and simply now focus on trading stock index futures, which I have found to be much more relaxing....

I believe Stevie Cohen at SAC does quite a bit of news trading...
 
Quote from Steve Tvardek:

I work with guys who make 500k+ a year trading strictly news only. So it is being done and done fairly well.
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Do they trade stocks only or other instruments ?

Thanx
 
Quote from candletrader:

I believe Stevie Cohen at SAC does quite a bit of news trading...
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That´s right. I think he calls it "News Arbitrage".

Well, we all know why. He is the first who gets it.
 
No they only trade equities, they sit and hawk over the bloomberg terminal and when something news worthy hits the wire, they interpret the news and get super agressive. Its really amazing to watch some of these guys trade.

Quote from Sundog:

Do they trade stocks only or other instruments ?

Thanx
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Well, that proves news trading is a valid stand-alone strategy, which I think is one of the best ways to trade, if you know how to react.

It is the old discussion of how to interpret the news and act accordingly. Difficult task. That´s why I prefer fading the news.

But I think hopping on the momentum-train makes more bucks with more risk of course.
 
Quote from Steve Tvardek:

No they only trade equities, they sit and hawk over the bloomberg terminal and when something news worthy hits the wire, they interpret the news and get super agressive. Its really amazing to watch some of these guys trade.
More...

Do they use some 'toolkit' /filters to extract the interesting news from selected equities or do they make the job manually with their eyes only?
 
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