How to profit from news plays

SAVA news of big insider buy triggered this move.

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. 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: Earnings

upgrades/downgrades

govt policy change

FDA decision

Natural disaster

Political instability

Insider buys

CEO/CFO change

New product launch

New order

There are many free sources of news. If you want to catch intraday moves you need to build process loop for tracking news ...

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....

To become good at this do this day in and day out and also after close find out the big movers and news behind them .....

Many of these kinds of news catalyst lead to just few hours rally , some lead to longer term trends.

Those stocks tend to be neglected and then have significant catalyst.

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