Archive for trade the news
Coca Cola Buying Coca Cola Enterprises CCE – Trading the news
Posted by: | CommentsWhat 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!
Chapter 11 – How to trade the News!
Posted by: | Comments“This is an excerpt from the soon to be released Liberated Stock Trader Book and accompanying Training Course”.
We have all been there, I certainly have. I bought a stock I really thought was a winner, like the perfect first date, it looked good, it felt good, it sounded good, it smelled right, and most of all it acted right. Even when it came to paying the bill, she paid.
The bill of course was the earnings report. Earnings were great, the chart looked good, the fundamentals looked great, it had an order book of new contracts in a booming economy, an industry leader delivering a good service. Yet when the excellent earnings were reported, beating estimates no less; the stock plummeted by 50% in one day.
