Who is trading stocks based on news soley?

Discussion in 'Strategy Building' started by Sundog, Aug 21, 2005.

  1. Sundog


    Is anybody successful with it ? I know it is an old topic, but the last thread on ET is some time, ago.


  2. To me it depends on what news we are talking about. FED's report, GDP, and similar basic reports , Yes I do trade based on them. any other news I usually wait to see what the market reaction is first and then make a decision.
  3. skepticaltrader

    skepticaltrader Guest

    The Forex market is excellent to trade from for Fundamental news. The market can move over 100 pips when GDP or Nonfarm Parolls are read. Its best to be on the right side of the market after the news is read.
  4. I work with guys who make 500k+ a year trading strictly news only. So it is being done and done fairly well.
  5. When I used to daytrade stocks, real-time news plays & CNBC pumps were fairly profitable... this was particularly so when market conditions were buoyant, since there was a greater proportion of dumb money with no sense of entry timing, who would propel the stocks to wild gains within minutes...

    But I have now moved away from stocks, and simply now focus on trading stock index futures, which I have found to be much more relaxing....

    I believe Stevie Cohen at SAC does quite a bit of news trading...
  6. Sundog


    Do they trade stocks only or other instruments ?

  7. Sundog


    That´s right. I think he calls it "News Arbitrage".

    Well, we all know why. He is the first who gets it.
  8. No they only trade equities, they sit and hawk over the bloomberg terminal and when something news worthy hits the wire, they interpret the news and get super agressive. Its really amazing to watch some of these guys trade.

  9. Sundog


    Well, that proves news trading is a valid stand-alone strategy, which I think is one of the best ways to trade, if you know how to react.

    It is the old discussion of how to interpret the news and act accordingly. Difficult task. That´s why I prefer fading the news.

    But I think hopping on the momentum-train makes more bucks with more risk of course.
  10. Do they use some 'toolkit' /filters to extract the interesting news from selected equities or do they make the job manually with their eyes only?
    #10     Aug 28, 2005