traded Potash (pot) today....faster then the news kicked in?

Discussion in 'Trading' started by NYC212, Apr 7, 2009.

  1. NYC212


    negative news on POT today, futures were down, so I sold short the stock at 80.80. pretty close after the open. I was thinking the bad news and down futures would make this a great short.

    well after I shorted it, POT went against me it went up 81.90!!!!! (eventually went down later on during the day)

    I was wondering if my trade was almost faster then news bringing the stock down?

    trading the news has been a good play for me, but sometimes I feel I get in, it takes a while for news to drive it down??? :confused:

    how fast does bad news hit a stock ?

    confused trader over here :confused:
  2. Currently trading $76.00 after hours due to disappointment over MOS and their profit plunging 89%.

    MOS -$3.25 AH
  3. Both POT and MOS were stock_turd3r favorites.

    Since they were 3x higher than current levels, too.

    He's pretended to buy them at the top, and to buy them all the way down.

  4. NYC212


    I figured it would go down, after the bad news and when I did short it, POT wasnt all that far down on the day compared to futures and the market.

    I just cannot figure why it went up 1 point then died down. but it didnt drop while the entire market was dropping.???

    wondering if the bad news takes some time before being to short it :confused:

    missed out on a nice profit today. it would have been nice
  5. AAA30


    what was the bad news?
  6. NoDoji


    NYC, the first 20 minutes of trading are extremely volatile. A lot of games are played based on news. The market makers can gap the price in the opposite direction of the orders piling up, then catch the amateurs off guard, triggering stops. If you don't know how to interpret the news AND have a solid reason to believe the news will drive the price a certain way, you will be the one trapped on the other side of the institutional trades-in-waiting.

    Unless you've planned in advance the price and chart action that must occur to warrant a specific entry on open, don't bother playing; wait for the first surge of action to end, then catch the wave of your choice.

    I've recently done some very profitable opening trades (all shorts) based on the fact that I'm familiar with a stock's personality and know every detail of yesterday's high/low, week's high/low, and month's high/low. I then select an ideal entry price, a price that I would LOVE to have but looks like I won't get. I throw it out there and often it gets filled on the opening volatility and then turns and becomes profitable within minutes.
  7. AAA30


  8. A good dip buy opportunity? MOS only down 7% AH, which isn't much considering the stock has been beating the market since it bottomed at 23 a few months ago.