What a great example of my previous article related to trading the news.

A typical example of when big news hits the market those with superior news sources can trade it.  In takeover situations prices rocket to just under the bid price of the buying company.  In US out of hours trading the stock price of Coca Cola Enterprises Ticker:CCE rocketed from $19.25 to $25 a 25%+ gain, on the news that Coca Cola will be making an acquisition, adding over $2 billion to the worth of this company. $2 billion is a lot to add to the value of a company overnight, this was the bit hitters trading.

If you had a news source that delivered this information to you 30 minutes ahead of everyone else and you are geared up to trade in an absolute instant you could have made good money here.  Especially if you had leveraged your money with Option Calls.  In and out in an instant.  Those that were in early are probably selling as we speak.

Can the private investor compete with the Wall Street old boys network of news?  Not really, that’s why I do not trade the news!