Are all breakout trades, just waiting and waiting for the news then BAM NEWS!

Discussion in 'Trading' started by Sky123987, Jan 9, 2009.

  1. when people talks about breakout trades are they talking about trading the news.

    Like when the stock is in a small small trading range and then it pops in either direction... is that always always people waiting for a news event?

    Example DNA today 1-9-09
  2. breakout is just that... price breaks out of a range... the catalsyst is more demand than supply... news can trigger the increase in demand over supply, or natural orderflow can trigger it.
  3. Not always waiting for the news. The news doesn't always come and often doesn't. Quite often false rallies or selloffs occur on rumors which have no factual basis. Steve Jobs dying comes to mind and apple shares.

    Quite often you will see prices move in advance in whatever security it is. It could be and often is the overall market also not just a particular security or commodity.
    What happens is word gets out. you could call it insider info but often markets or securities move in advance of some information or rumor which has not been generally disclosed to the public.