8/21/2013

How to find big moves for the day or months


NFLX was up 13 dollar yesterday. What triggered this move? A news of new contract. Like this you will see many big moves in a day. Many of them have common character. They have fresh news.

Fresh news creates fresh moves. 

Fresh news can be good source of candidates for swing traders. If you set up a systematic process to go through news for 30 to 60 minutes in the morning, you can find 3 to 5 good candidates for swing trades.

Stocks that release news pre market can often make one day big moves. Many of them start with gap up open. Some of them are up in post market or pre market session.

Stocks release news post and pre market. Analyst upgrades tend to happen in the morning. In earnings season lot of news is released post and pre market. Such news often leads to one day move on day of news. These one day moves can be 5 to 20% magnitude.

Sometime if the news is significant it can lead to multi week or multi month rally. For day traders and short term swing traders news catalyst can offer a range of opportunities.

Such stocks with fresh news are called stocks in play or story stocks. 

News that can affect price:

  1. Earnings
  2. upgrades/downgrades
  3. govt policy change
  4. FDA decision
  5. Natural disaster
  6. Political instability
  7. Insider buys
  8. CEO/CFO change
  9. New product launch
  10. New order

There are many free sources of news. If you want to catch intra day moves you need to build process loop for tracking news on daily basis post and pre market. Many Stockbee members exclusively focus on this for swing trading or day trading. Day traders tend to track news more actively

When you start tracking news to find swing trades , at first you will feel every news is important. But soon you will figure out what is consequential news and what should be ignored. This kind of skill building requires months of regular practice. After market close you have to study what news triggered big moves and why. Cumulatively if you build this knowledge over 6 month to a year, then you can just glance through news to find the real moving news and you will become more efficient in spotting game changing news.

There are several sources of news. Some like briefings.com are paid and some are free. Some paid sources like Bloomberg are ultra fast.

Many of these kinds of news catalyst lead to just few hours rally , some lead to longer term trends lasting months or weeks. Those stocks tend to be neglected and then have significant catalyst. Those are the kind of game changing catalyst we want to focus for long term trades.

Look at FB. Some weeks ago it had big news about earnings. The news was big surprise for market. The news lead to start of a next up leg. This up leg might last at least till next earnings season. 

Look for game changing news if you are looking for longer term moves or position trades. Small news leads to small moves, big news leads to big explosive moves.

If you are a swing or day traders remember this important thing:

Fresh news creates fresh moves. 





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You will see that many trading bloggers have been using my market timing methods, scans , stock ranking lists and chart templates. They have developed their own methods based on my methods. Many paid newsletter site recommend my site to their subscriber for learning about trading and market.

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What will I learn in the members site?

The members site will give you in depth understanding to develop your own trading method. The emphasis is on making you self sufficient and confident of your own trading method and style.

As a member you will learn the basics of swing trading, momentum investing, growth investing and risk management.

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You will learn about Stockbee Night Time is Right Time method to find news catalyst based trade ideas for short term day trade and swing trade.

You will learn about Investor's Business Daily’s IBD 200 list and how it can be used to find swing trading candidates for explosive moves.

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You will learn about Jesse Livermore Range Breakout, Darvas Box setup, and many other member shared methods.

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The site has hundreds of videos and trading methods and variation of methods. Members help each other in developing the methods and share actively their research and finding. A collaborative spirit allows you to get input from others on your trading ideas or problems.

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Do you have a trial?

If you are just looking for trial you are better off trying thousands of other trading sites that offer free trial or one month trial and offer you promise of riches.

It is for those who are ready beyond the trial phase and ready to put serious months or years  of efforts to learn to trade on their own. It is for those who want to learn to find their own fish.

The free blog has all the details about the methods I trade and if you go through the posts highlighted in the sidebar you will learn about them.



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