By www.ProfitableTradingTips.com Profit from the News in Day Trading Many investors miss out on stock opportunities because pertinent news breaks when they are working at their day jobs. For those whose work takes place at the trade station it is common to profit from the news in day trading. The amount of profit from the news in day trading will commonly depend upon how quickly one finds the news, how clearly one understands the impact of the news, and how rapidly one enters trades. There are a number of profitable day trading strategies, all of which can be applied at times in order to profit from the news in day trading. The first part, however, is to understand the news. Understanding the News In order to routinely profit from the news in day trading the trader needs to understand what the news means in regard to stocks, commodities, or currencies that he is trading. For example, a trader who has analyzed the fundamentals of a stock that is a takeover target will have a better grasp of how a stock price will react when a hostile takeover is actually announced. When the cost of crude oil goes up it raises the cost of doing business in many industries. Having a clear idea of just how much profit XYZ Company will lose due to higher energy prices will give the trader a clear idea of how much XYZ stock will trade for in the near future. Being at the trade station when the news breaks and understanding the news lets you make the right trade and profit from the news in day trading. If you are adept at range trading in day trading you will feel comfortable with anticipating the new range that XYZ will trade in and profit thereby. Technical Analysis of Market Reaction Although you may have a clear idea about how much higher energy costs will hurt XYZ Company the broader market may not. As such there will commonly be a period of volatility in XYZ stock price. Using technical analysis to gauge market sentiment a wise trader can profit from the news in day trading. Scalping in day trading is a viable strategy when you are able to do rapid technical analysis of the market response to news about XYZ. Predictable Patterns Often times it is fairly predictable that the price of XYZ will overshoot in response to the news, over correct, and then finally settle into a new trading range. Here is where technical analysis is helpful and where being at the trade station for the duration of XYZ stock volatility is essential. While otherwise successful traders and investors may prosper from their efforts it is the trader whose day job is at the trade station that most commonly can profit from the news in day trading. The issue is often more one of being there that of having deep insight. Good news drives stock prices up and bad news drives them down. Being there at the right time allows the day trader to profit from short term market inefficiency which is common after breaking news about a stock, commodity, or currency.

2. Many investors miss out on stock
opportunities because pertinent
news breaks when they are
working at their day jobs.

3. For those whose work takes place
at the trade station it is common
to profit from the news in day
trading.

4. The amount of profit from the
news in day trading will
commonly depend upon how
quickly one finds the news, how
clearly one understands the impact
of the news, and how rapidly one
enters trades.

5. There are a number of profitable
day trading strategies, all of which
can be applied at times in order to
profit from the news in day
trading.

6. The first part, however, is to
understand the news.

8. In order to routinely profit from
the news in day trading the trader
needs to understand what the
news means in regard to stocks,
commodities, or currencies that he
is trading.

9. For example, a trader who has
analyzed the fundamentals of a
stock that is a takeover target will
have a better grasp of how a stock
price will react when a hostile
takeover is actually announced.

10. When the cost of crude oil goes
up it raises the cost of doing
business in many industries.

11. Having a clear idea of just how
much profit XYZ Company will
lose due to higher energy prices
will give the trader a clear idea of
how much XYZ stock will trade
for in the near future.

12. Being at the trade station when
the news breaks and
understanding the news lets you
make the right trade and profit
from the news in day trading.

13. If you are adept at range trading
in day trading you will feel
comfortable with anticipating the
new range that XYZ will trade in
and profit thereby.

15. Although you may have a clear
idea about how much higher
energy costs will hurt XYZ

16. Company the broader market
may not.
As such there will commonly be a
period of volatility in XYZ stock
price.

17. Using technical analysis to gauge
market sentiment a wise trader can
profit from the news in day
trading.

18. Scalping in day trading is a viable
strategy when you are able to do
rapid technical analysis of the
market response to news about
XYZ.

20. Often times it is fairly predictable
that the price of XYZ will
overshoot in response to the
news, over correct, and then
finally settle into a new trading
range.

21. Here is where technical analysis
is helpful and where being at
the trade station for the
duration of XYZ stock
volatility is essential.

22. While otherwise successful
traders and investors may
prosper from their efforts it is
the trader whose day job is at
the trade station that most
commonly can profit from the
news in day trading.

23. The issue is often more one of
being there that of having deep
insight.
Good news drives stock prices
up and bad news drives them
down.

24. Being there at the right time
allows the day trader to profit
from short term market
inefficiency which is common
after breaking news about a
stock, commodity, or currency.

25. Often times ninety percent of
successful stock trading is being
there when the news hits.