• Playing news is primarily the realm of the day trader. The basic strategy is to buy a stock which has just announced good news, or short sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses). Determining whether news is "good" or "bad" must be determined by the price action of the stock, because the market reaction may not match tone of the news itself. The most common cause for this is when rumors or estimates of the event (like those issued by market and industry analysts) were already circulated before the official release, and prices have already moved in anticipation. The news is said to be already "priced-in" to the stock price.
 
  • Scalping originally referred to spread trading. Scalping is a trading style which arbitrage for small price gaps created by the bid-ask spread. It normally involves establishing and liquidating a position quickly, usually within minutes to even seconds.
 
  • Short selling. About 75% of all trades are to the upside. The trader buys it and expects it to rise, because of the stock market's historical tendency to rise and because there are no technical limitations on it. About 25% of equity trades, however, are short sales. The trader borrows stock from his broker and sells the borrowed stock, hoping that the price will fall and he will be able to purchase the shares at a lower price.
 
Visit also:
www.tanzania.eu – and you will decide to go there immediately
www.diving.eu – and discover underwater world
www.alpajda.eu and www.brefa.eu – find out what you have never thought of
www.one-x.eu – if you believe in UFO
www.i-wifi.eu and www.wifi-city.eu – what you should know about wi-fi
www.wot-if.eu – what would you do in an extreme situation?
www.graspop.eu and www.volbeat.eu – if you can’t live without music
www.relax.pl if you are planning holidays in Poland
www.manager-weekly.eu