How to trade off news predictions?

Discussion in 'Stocks' started by bob2007, Apr 12, 2018.

  1. bob2007

    bob2007

    Let's say I predicted that there'd be no war between North Korea and South Korea / USA and it was just hype before.

    How would I have profited from this prediction?

    Shorting defense stocks might not be the trade, as there was other conflicts happening at the time.
     
  2. Sell good news/Buy bad news
     
  3. Buy the rumor sell the news that is one way, another is to wait for the news to come out and then trade in the market direction.
    Try not to predict, just trade what you see!
     
    Last edited: Apr 12, 2018
  4. bob2007

    bob2007

    The index?
     
  5. That is usually a safe bet
     
  6. qxr1011

    qxr1011

    news prediction does not matter, even correct one :)

    what matters is prediction on which market and how will be affected
     
    Xela likes this.
  7. bob2007

    bob2007

    Yes that's my question haha. But maybe that is your answer also? :)
     
  8. qxr1011

    qxr1011

    exactly

    before predicting anything one should find first the corresponding market(s) and work with them for example where u going to put stop if market will go against you

    etc etc

    not the other way around
    doing that you will soon realize how irrelevant are predictions at all :)
     
    bob2007 likes this.
  9. If you ask me, that's a risky and silly game to bet and predict hype news between real news.
    It would seem like the quick answer would be to sell options/volatility.

    But you need to first establish your time frame end game goal,
    Do you predict/trade/bet...daily, or weekly, or monthly, or a year from now?
    It's not enough to just wait and and sit and see casually what the market will do if and when,
    That's like saying The Yankees will win a baseball game. So what. of Course they will...but when, the very next one...or 5 from now, or 9...?
    If you can't generally, loosely, realistically answer this...you shouldn't be trading.
     
    Last edited: Apr 12, 2018
    bob2007 likes this.
  10. Overnight

    Overnight

    If you predicted that war was NOT imminent, you'd short a safe-haven like gold. That is the gist of it.
     
    #10     Apr 12, 2018
    bob2007 likes this.