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Trending Stocks on Breaking News Now

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Written by Timothy Sykes
Updated 9/16/2023 13 min read

The trending stocks that are best for trading have one magic ingredient — breaking news.

It’s often said that the market is a discounting machine. The viral videos, macroeconomy, and Reuters finance stories that move it are all its inputs — and they all come in the form of breaking news.

Breaking news content can be credit cards interest rates falling or presidential results being issued. ChatGPT’s logo showing up in ads for another company can provide trade ideas. Even a regular calendar occurrence can move stock quotes.

In this article we’ll discuss the importance of breaking news, the rules I trade breaking news stocks with, and how you can use breaking news to inform your bids!

What Are Stocks?

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At the most basic level, stocks represent ownership in a company. When you buy shares, you’re purchasing a piece of that business’s potential earnings and growth. Investment accounts grow when the stocks they hold increase in value.

When you trade stocks, you try to buy or sell at a different cost than you initiated the transaction with. The difference often comes in the form of breaking news.

Breaking news can be a catalyst for significant market movements. For instance, a sudden surge in interest for a particular stock can lead to a flurry of activity, often resulting in a sharp increase in its price. This is especially true for stocks that are currently ‘hot’ in the market. These are the stocks that are experiencing a surge in volume and price due to various factors. To understand more about these stocks, you can check out this article on Hot Stocks. It provides a comprehensive guide on how to identify and trade hot stocks effectively. Remember, staying informed and updated is key to successful trading.

Breaking News in the Stock Market

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Breaking news is like a spark in a dry forest — it can ignite a sudden movement in the stock market. For instance, think about how Tesla’s stock reacts every time Elon Musk tweets, or how an unexpected earnings report can send a company’s shares either plummeting or skyrocketing.

Staying informed with newsletters and news updates is critical in this fast-paced market. Every bit of information is a tool in your arsenal, helping you make educated decisions on where to put your money.

My go-to weapon for finding plays? I use StocksToTrade — I even helped design it! This software is essential for finding trading opportunities.

StocksToTrade’s Breaking News add-on alerts me to important news articles in stocks and the overall economy, giving me a crucial trading edge. The things it spotlights range from new products to photos of officials doing noteworthy things…

Roughly half of my recent trades have been direct effects of Breaking News.

Get a 14-day trial of Breaking News Chat here — only $17!

Understanding Financial Markets

Financial markets are like a global club of traders, companies, and governments, all participating in the buying and selling of various financial assets, including stocks. It’s a broad term that encompasses the stock market, but also other markets like commodities, bonds, and currencies.

These markets are intertwined. A shock in one (like a sudden drop in gold prices or an upheaval in the credit market due to a debt ceiling debate) can create ripples in others. Being aware of these interconnections helps you to understand and predict market trends.

Multi-Year Highs in Global Markets

We’ve seen global markets hitting multi-year highs recently, which is both exciting and, let’s be honest, a little nerve-wracking. But this is the world we trade in. Events halfway across the world can impact our investments here in the U.S.

For instance, tensions in Ukraine can have Russian stocks feeling the heat. But it’s not all about crises. Positive news, like the announcement of a major deal between Alibaba and Cisco, can propel related stocks to new heights.

Kevin McCarthy and Jeffrey Epstein headlines have moved stocks in the recent past. Always be prepared for market moves, good or bad.

Analyst Estimates for Stock Futures

Stock futures are about making educated guesses on tomorrow’s prices today. Analysts play a crucial role here, providing forecasts based on company earnings, sector growth, and economic indicators.

Take Nvidia, for example. When analysts raised their target for Nvidia’s stock based on anticipated sales growth, the market listened, and the stock saw significant movement. Listening to analysts and understanding their estimates can give you a roadmap of potential market trends.

Financial Advisors and their Role in Understanding Stocks

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Financial advisors are like your personal Wall Street guides. They offer advice on investment choices based on your financial goals, risk tolerance, and time horizon. But remember, it’s just advice. The final decision on where your money goes should always be yours.

While they can offer valuable guidance, financial advisors are not prophets. They base their recommendations on their analysis of market data, past performance, and industry trends. It’s always a good idea to supplement their advice with your own research.

Seeking Professional Assistance for Investment Decisions

Seeking professional assistance for investment decisions is a way to navigate the complex world of financial markets. Advisors can offer insights into market trends, sector performance, and individual stocks.

However, even with professional guidance, you should stay updated on the latest breaking news affecting your stocks. Remember the cardinal rule of investing: It’s your money, and no one will care about it as much as you do.

Types of Stocks to Consider Investing In

The world of stocks is diverse. From common to preferred, large-cap to small-cap, domestic to international, each type carries unique benefits and risks. The goal is to build a portfolio that reflects your financial goals and risk tolerance.

Understanding the various types of stocks can help you make more informed investment decisions. Remember, the right stock for you depends on your financial goals, risk tolerance, and investment timeline.

I like to trade penny stocks. These are stocks that trade for less than $5 per share and can offer significant profit potential. However, they’re also considered risky due to their volatility and the lack of information about the companies.

If you’re interested in learning more, read this detailed guide on Penny Stocks. It provides valuable insights into the world of penny stocks and how to trade them effectively.

Common Stock

Common stocks are, well, common. When people talk about stocks, they usually mean common stocks. They offer a proportionate share in a company’s profits or losses, and typically, voting rights at shareholders’ meetings. Big names like Google and Tesla offer common stocks.

Preferred Stock

Preferred stock is like the VIP section of a club. Preferred shareholders get dividends before common shareholders and have a higher claim on the company’s assets if it goes bankrupt. However, they usually don’t have voting rights.

Large-cap Stocks

Large-cap stocks are shares in companies with a market capitalization (the total market value of a company’s outstanding shares) of $10 billion or more. They are generally considered more stable and less risky than their smaller counterparts.

Mid-cap Stocks

Mid-cap stocks fall between large-cap and small-cap stocks in terms of market capitalization. They offer a balance between the growth potential of small-cap stocks and the stability and resources of large-cap stocks.

Small-cap Stocks

Small-cap stocks are shares in companies with a market capitalization of under $2 billion. These stocks can offer significant growth potential, but they can also be more volatile and risky.

Domestic stocks

Domestic stocks are shares in companies based in your home country. For us, that’s the U.S. Investing in domestic stocks allows you to invest in what you know and understand.

International Stocks

International stocks offer a chance to diversify your portfolio geographically. They can provide exposure to growth in emerging markets and established economies outside your home country.

Value Stocks

Value stocks are shares in companies that are considered undervalued compared to their intrinsic value. Investors buy these stocks in the hope that the market will eventually recognize the company’s full potential.

IPO Stocks

IPO stocks are shares offered to the public for the first time through an initial public offering (IPO). They offer the potential for high returns, but they can also be risky as the company has yet to establish a trading history.

Penny Stocks

Penny stocks trade for less than $5 per share. They can offer significant profit potential, but they’re also considered risky due to their volatility and the lack of information about the companies.

Blue Chip stocks

Blue-chip stocks are shares in large, well-established companies with a history of reliable performance. They’re the stalwarts of the stock market, known for their steady returns and dividends.

How Does News Impact Stock Prices?

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News is the heartbeat of the stock market. Every earnings report, every CEO statement, every geopolitical event can cause a ripple in stock prices. Whether it’s positive news like home sales trending up or negative news like a lawsuit against a company, every bit of information can sway investors’ perceptions and, in turn, stock prices.

It’s not just about the company’s revenue and earnings, but the narrative surrounding it. And that narrative is often shaped by the breaking news of the day.

How Do Stocks React to News?

Positive news can send stocks soaring, while negative news can cause them to plummet. Remember, it’s not just the news itself, but how investors interpret that news.

For instance, when Nvidia announced better than expected sales, the stock surged. However, not all news is interpreted as expected. When China’s Alibaba posted record profits, it was overshadowed by the news of a new regulatory probe, causing the stock to dip.

How to Handle Short-Term Volatility

Short-term volatility can be jarring, but it’s essential to trading. That’s the ingredient that quality breaking news brings.

The way to handle short-term volatility is to stick to your trading plan. That means going for small gains, and cutting losses quickly.

One common occurrence that can lead to short-term volatility is a pump-and-dump scheme. This is when a stock’s price is artificially inflated, often through false or misleading statements, only to be sold off by the perpetrators once the price has risen. To protect yourself from falling victim to such schemes, it’s important to understand how they work. This article on Pump-and-Dumps provides a detailed explanation of these schemes and how to avoid them.

How to Anticipate Breaking News in the Stock Market?

While no one can predict the news, being in tune with the market can help you anticipate potential reactions. Keep an eye on upcoming events like earnings releases, major economic announcements, or changes in Federal Reserve policy.

It’s also important to know your stocks. What sectors are they in? Who are their main competitors? What external factors influence their performance? By understanding the ecosystem around your stocks, you can be better prepared for how breaking news might impact them.

Key Takeaways

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Breaking news plays a massive role in stock trading. It can shake up markets, create trading opportunities, and cause a bit of chaos.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

Do you use breaking news in your trading strategy? Let me know in the comments — I love hearing from my readers!

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”