|Moderated By: LouieD -- (Not Moderated) -- Started: 5/28/1998 8:11:00 PM Revision History|
One of the best ways I found to pick a winner
has been to scan the news wires after the market
is closed and before it opens.You'll be surprised
what gems can be found by buying this way.It's
reasonable to say you can make 3-5 % a day on
your picks if you manage them properly.Some of
the biggest gainers have been stocks that released
news BEFORE the market opened.Companies like to
have their press releases in the morning which is
great for us because there is no need to constantly
keep checking your portfolio.Of course there are certain
criteria I follow when buying on stocks on news:
1.Always check to see if the story is fresh.Allot of times
companies release the same news over and over.
2.Stay away from stocks with very low volume.
3.Check to see if there was a run-up on the stock earlier.
Sometimes news leaks out before press release.
4.I like a stock that has nice base for awhile or is at
the low end of it's trading range.The way I figure it is the
worst the stock can do with good news is stay at it's current
price or maybe go down a little but the upside can be great.
5.I can't stress Level II enough.It's a must when daytrading.
6.Look for good solid news and check to see how the company
responded to previous news.
7.Check to see how many shares they have.The fewer the better.
8.Have a broker who gives fast executions.
9.Greed will kill you.Remember 5% 2 or 3 days a week will make
10.Always buy with a limit order...NEVER MARKET ORDERS!
I'm sure I'm forgetting some points but you get the idea.I will
try to post my recommendation @9:25 am or so.I can't promise
a post every day since I have two Taverns to run here in Philly
but feel free to post your own picks.Try to give a quick synopsis
of the stock and post the link.When posting a news story put
"NEWS ALERT" in the title.
Good Luck to all!
BTW...for realtime news try here newsalert.com
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