Tarding based on news articles

robplev

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Has anyone heard of this? It strikes me as being the most sensible way of trading - particularly with the speed of the internet at our disposal but I can't find any information on it.

I think it was originally being marketed by gary Halbert, the principle being that if you can find news artciles in their pre published state (as press releases) announcing stories that will obviously affect market prices - directors selling etc. then you have about 30 minutes max to make a trade before the news becomes more widespread.

Failing that - are there ANY systems that actually work?
 
I think that when the news hits media, it is already too late, even if you get your hands on it before "everybody else".. unfortunatly.
 
By the time traders get the news they are already discounted by insiders.

True. But it never hurts to keep abreast of news. Besides, the goal is not to compete with insiders, the goal is to outperform the market, for which beeing aware of major news should be enough.
 
Has anyone heard of this? It strikes me as being the most sensible way of trading - particularly with the speed of the internet at our disposal but I can't find any information on it.

I think it was originally being marketed by gary Halbert, the principle being that if you can find news artciles in their pre published state (as press releases) announcing stories that will obviously affect market prices - directors selling etc. then you have about 30 minutes max to make a trade before the news becomes more widespread.

Failing that - are there ANY systems that actually work?


Wrong target I feel. In a race to make the right decision first, after the news but before its impact on price, your key competitors are the players with faster information flow and more money. If you're a private trader, that means 100% of the professionals and on average 50% of the other private traders in the game.

But there's lots of news that doesn't have a shelf life measured in minutes, setting up trends which even the big boys can't oppose. You're attacking where defence is strongest and your strength minimal.
 
Wrong target I feel. In a race to make the right decision first, after the news but before its impact on price, your key competitors are the players with faster information flow and more money. If you're a private trader, that means 100% of the professionals and on average 50% of the other private traders in the game.

But there's lots of news that doesn't have a shelf life measured in minutes, setting up trends which even the big boys can't oppose. You're attacking where defense is strongest and your strength minimal.

Good point too. Besides, I don't get why you should always oppose other traders to yourself. There's plenty of space and money on the market for numerous players to make profits. Even if you are the last to hear about, say, company going BK and lose your shares in it, this only means you've stayed here for too long. It's rare for a single event to completely destroy your investment, most of the time this happens due to yourself getting greedy and holding for too long. The same applies to all movement caused by news - you shouldn't be the first to hear, you should be the one to listen.
 
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