Stocks & Commodities V. 31:1 (31): Q&A by Don Bright
Product Description
Q&A by Don Bright
NEW TRADER, NEW QUESTIONS
From Claude Moran: Mr. Bright, I’m in my late 20s and have just started a career in professional trading. I have my license, have put up my own capital, and get to keep most of my trading profits. I have read your column in Stocks & Commodities for a long time, and I do my best to digest your responses when they apply to my situation. Like your firm, I stick with equities and trade stocks and exchange traded funds (ETFs) exclusively. I hope you won’t mind answering some basic questions. Here we go:
1. I have a mentor who likes to trade from the news on individual stocks. He pays for several services that give him news before anyone else gets it. I am skeptical if this is really true. And do you have experience with this type of trading?
Don Bright answers: Please feel free to ask me anything about anything to do with the markets and trading. Now, as to trading “news stocks.” This is a tough and competitive portion of trading. My opinion is that “someone always knows things before I do.” Period. That said, there are traders who have developed computer programs to search multiple data vendors for keywords, news items, things like “dividend,” “increase,” “sales,” and so forth and will immediately check out other symbols in the same sector(s) and execute trades immediately. That level of sophistication is not extreme these days. So if you think you can compete with this, then feel free.
NEW TRADER, NEW QUESTIONS
From Claude Moran: Mr. Bright, I’m in my late 20s and have just started a career in professional trading. I have my license, have put up my own capital, and get to keep most of my trading profits. I have read your column in Stocks & Commodities for a long time, and I do my best to digest your responses when they apply to my situation. Like your firm, I stick with equities and trade stocks and exchange traded funds (ETFs) exclusively. I hope you won’t mind answering some basic questions. Here we go:
1. I have a mentor who likes to trade from the news on individual stocks. He pays for several services that give him news before anyone else gets it. I am skeptical if this is really true. And do you have experience with this type of trading?
Don Bright answers: Please feel free to ask me anything about anything to do with the markets and trading. Now, as to trading “news stocks.” This is a tough and competitive portion of trading. My opinion is that “someone always knows things before I do.” Period. That said, there are traders who have developed computer programs to search multiple data vendors for keywords, news items, things like “dividend,” “increase,” “sales,” and so forth and will immediately check out other symbols in the same sector(s) and execute trades immediately. That level of sophistication is not extreme these days. So if you think you can compete with this, then feel free.
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