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 Trading – This 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.
Stock 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.