Trade The Chart Or Trade The News?

Those traders who keep saying “trade the news” don’t really understand what they are trading. Its not really the news yung nagbibigay ng opportunity sayo. It’s the delay in information. It’s the delay ng news. You see, what empowers people to trade on news is the delay in the broadcasting of the news to a bigger number of investors through news portals and social media. Oftentimes the news we learn does not get fully propagated, which means the intended audience will not learn about it until late in the evening, when they arrive home from work. By that time, you will have already bought the stock and you can just wait for the opportunity to sell it for a higher price shortly after. When you are consistently monitoring the early-phase sources of information, the majority of which are online, you learn the relevant news first and can start making buy recommendation. As more and more investors pick up the news, volume and price begin to ascend based on how good the news really is for the economy. What makes trading on the news profitable is the gradual dissemination of the news from a smaller to a bigger number of investors. This just proves that time delays can actually be exploited for profit. Average investors just aren’t quick enough. However, please note that trading on news alone is quite a dangerous sport. Bakit dangerous? Dangerous kasi retailer ka. You get  left over information/news. Try mo lang imagine. May news na bibilhin ni MPI si MED. Bago ma finalize ang deal na yan months before pa na planning. Marami ng tao ang involved so information about it is out sa few people. Lets say na finalize na. People involved on the deal can’t really benefit much sa igagalaw ng stock price kasi illegal ang insider information at may rule ang PSE against buying na may prior knowledge ka sa information na hindi pa na release sa public. Meron din rule na a month after ka pa pwede bumili ng sarili mong stock after nyo maglabas ng malaking disclosure. All rules na naviolate ni Calata. Lets say na finalize na ang deal. Send sa PSE for disclosure. Here is the listing and disclosure rules if you want to dig deep. If you want yung disclosure rules lang here is a pdf na pwede mo madownload. After masend sa PSE e send na sa national Media or newspaper. The journalist receiving the information nauna pa sayo malaman ang news as well as their family at friends. After ma print sa newspaper or lumabas sa social media saka mo pa lang malalaman ang news If you really think about it as a retailer sobrang nasa disadvantage ka if you rely sa news.