News Trading Strategies

Written by Author

On May 14, 2020
news Trading Strategies

Robust News Trading Strategies

NewsScraper can easily be setup for your preferred trading style.  Customers often ask: how to parse news to build trading strategy? Below is a list of common trading styles that combined with sophisticated trading software could prove to be advantageous over most other traders.  NewsScraper’s alert software incorporates recognition technology (normally only available with costly Bloomberg terminal software and with institutional investors) to notify users when stocks of interest has events related to it.

Momentum TradingThis is a strategy in which the trader looks to profit from momentum of a news release, economic outlook, a stock sector movement, or any type of information or market movement that is supported by high volume and therefore more resistance to a reversal or slow down.

News Trading StrategiesStock News Trading – This style of trading is one of the most popular among day traders.  It is a form of momentum trading in which a trader buys or sells stock based off recently released news.  This form of trading is known to be especially effective with trading penny stocks that are extremely volatile.  NewsScraper offers stock news alerts and news tickers for each symbol entered.

Trend Trading – A strategy in which the trader buys a stock that is trending upward or shorts a stock that is trending downward.  The trick to this strategy is identifying the trend early enough to maximize profits and minimize losses.

Range Trading – A strategy in which a trader locates a stock that has been trading in a price range and buys the lows and sells the highs within that range.  For example, if a stock is consistently trading between $20 and $21 a trader would look to buy at or near the $20 mark and sell when it is at or near the $21 mark.

Daily Pivot Trading – A strategy in which a trader bases his/her trades off pre-determined support and resistance levels.  Pivot trading uses the previous day’s trading data to calculate these levels and traders place their order at or near these levels.  NewsScraper has dedicated a portion of their software to calculating pivot points for individual stocks.

Fade Trading – This strategy involves shorting or selling a stock at the peak of a sharp increase in price.  The trader shorts the stock when they assume it is near the peak due to an overbought or profit taking level.

Buy and Hold – The typical buy and hold strategy can also be taken advantage of using NewsScraper’s software.  NewsScraper provides a detailed fundamental screen showing the history and all pertinent information to making an informed decision for a long term buy and hold strategy.

Good luck and Check out our News Scraper Platform 🙂

You May Also Like…

Stock Alerts Software to Trade the News

Stock Alerts Software to Trade the News

Stock Alerts Software to Trade the News Successfully   Stock Alerts to Trade the News. We track news across a broad range of channels and distribution outlets. We give you realtime stock alerts. Whether from the CEO of a Fortune 500 corporation or an industry...

What are Stocks. Different Types Of Stocks explained.

What are Stocks. Different Types Of Stocks explained.

What are Stocks? Stocks are shares of a company that sold to help that company raise money. Owning it gives you certain rights within that company and its operation. You have a right: to vote on company decisions, get a dividend each year, and considered a partial...

When To Sell Stocks For Profit

When To Sell Stocks For Profit

When To Sell Stocks? How high should you let it grow before taking profits? This is a question that gets asked a lot actually, and there are no easy answers here because I don't know exactly what you own. But, ordinarily, that is one of the hardest parts of investing,...