What's up everyone? Alright, so in this episode I'm gonna break down for you how to day trade breaking news and I had a perfect example of it. Today a stock pops up I'm gonna show you the headline, the live trading recording the initial market response, me jumping in the first pullback, riding that momentum and taking profit on the way up. Three minute long trade over $1500 of profit. Now this is a stock that has ended up coming almost all the way back down.

it were traced the entire move and that's not uncommon with breaking news headlines. Sometimes the initial market response is really dramatic and then things kind of settle down as investors and and traders kind of really circulate and better understand the news. That's why it's always important when you're trading these. that number one, you understand how much you're risking on the trade on this trade has risking $700 my profit target a thousand to 1500 ended up getting that.

Which means I was risking 700 to make 1500. That's a 2 to 1 profit - loss ratio. Which means if I'm right only 33% of the time trading that setup and breakeven. So if I'm right 50% of the time or 60% I'm or 70% of time I'm making a lot of money.

In fact, you'll see today that I'm up over $11,000 on all my trades across the board. Today was a really solid day in the market. Now as you're watching this episode, you might have a couple of questions about risk management, about stock selection, scanners flow breaking news so if I don't answer all of them in this episode, what I want you to do is click the link right in the description to register to my next live webinar. I Think that will help get some of those questions answered.

And of course you can leave questions right down there below in the comments if you enjoy these videos I Hope you are already subscribe to the channel, but if not, hit that subscribe button. Alright, so let's get into it. Let's start talking about how to day trade breaking news are you guys? So this is kind of funny because literally yesterday I was telling myself I should make a an episode of video on how to day trade breaking news and I was like man, it's been kind of a while since I had a really good breaking news headline that I traded. so I was like well you know I guess I'll just have to kind of.

You know, stay on the lookout for one and and maybe if it comes up, hopefully I'll be recording and I'll trade it and everything else. Boom Today breaking News on NB Evie and I traded it now I'll preface this by saying that basically every day I am trading breaking news because when I trade a stock that's on this Gap scanner here the stock dare for instance or this stock ad AP this stock ad AP is right. Here is our second lead in Gapper of 45% this morning with two hundred and seventy five percent gain. As of right now, it had breaking news.

but I Wouldn't really consider this to be trading breaking news because the news was out hours beforehand. I was more jumping on the momentum once the market opened. Breaking News I Would consider to be more like this: trade on Nbe V where the stock was doing nothing. Absolutely nothing and then all of a sudden is doing something incredible right that is more typical of breaking news.

And so this is what. I've got a really good example of today. So Nbe V is the stock. Let's go back and let's see.

I'm gonna pull this up on my chatroom feed here so I can show you guys the news as it was posted in the room. Um, alright, so here we go. Alright, so this is our chatroom software and Newsdesk is this proprietary news feed that we have that. API So the news is posted right into the chatroom.

so News desk post Nbe V that's the stock symbol Kendall Jenner's diet includes new-age beverage brands. She told E News that she drinks this to start her day every morning and that was in a tweet NB Evey was a tweet from the company. All right. So we've got tweet from the company the Kendall Jenner and I Don't know if it's a it sounds like a little bit of an informal celebrity you know kind of promotion there.

or maybe it's formal I don't know but in any case, paid unpaid I don't know. All I know is that when I pulled it up, the stock was already hitting a dollar and 96 cents. So I'm gonna bring this down to the 10-second chart because this is such a fast-moving trade that I ended up taking all right. So I pulled it up and it was right around right around here.

It actually was right around here and let me pull up my live trading recording for you as well. Let's see and I will break this down. Okay, so hold up, let me just get this. Alright, so there we go.

Okay, all right so and we'll pull this up right here and be evey Currently its back of the dollar 87 88 So it's kind of like one of the things I say with trading a lot is we don't want to marry these stocks and you don't want to get emotionally attached because they will. They will let you down. These are stocks that you want to be actively trading. You want to get in, get your profit, and get out.

Sometimes these stocks will continue higher like abap and of course you think oh man, I should have stuck with it longer. but more often than not they do this. And so one of the things we also say the traders. You don't go broke taking profit, you take money off the table and every single day when you're trading, you were doing one of two things.

You were either giving back money to the market or you are walking away with profit and potentially leaving a little bit of money on the table. Look at this this just dropped from was that $5 to you know for 68 I would rather walk away knowing that I did a great job. Maybe I'm leaving the little money on the table but I feel better walking with profit then. let's say giving back half my gains because I over trade the market so on Nbe V I don't think I I think I sold it a little too soon I left a little money on the table and and we'll You'll see this here.

Alright so so let's go back. So we've got the the news headline right here. Kendall Jenner blah blah blah Alright so I see that I pull up the stock and as I pulled it up and saw that it was already up this much I started pressing the Buy button. So I bought in thousand share increments 97, 98, 99, 99 Now the thousand share increment, you could just as easily change this to anything else under your share size settings I have my custom orders here for buy a thousand shares I Probably it's probably worth changing this.

I did a small account challenge and as I was preparing for that I trade I put myself into boot camp where I could only trade with 2,000 shares. but I haven't changed it since then. so I don't know I whatever I've been on a good hot streak. kind of want to change what's been working in TD Ameritrade I would have typed in Nbe V just like this and then I'd be able to either click this for a thousand shares or 500 and then click the buy market button.

Alright, that's the easiest way to jump in here. Okay, so Nbe V it's surging up and I go ahead and jump in it. So I'm now in it right now and as you can see, I actually added at two dollars and six cents. So I was kind of adding as it's moving higher and now it's at 218 up 28% and it's got 1.9 million shares of volume, almost 2 million shares and you know it's not a stock that I trade a lot.

You can see Nbe V hitting the scanners here. it's got 71 million share flow. Now the float is the number of shares available to trade and if you're not super familiar with that, you can watch a couple of my other videos or click down below. There's a link to register to one of my workshops where I'll teach you about float and and how I qualify a stock for having the potential to have homerun.

you know, a homerun tray. nbe V I was a little skeptical I Know it's a stock that sometimes a little bit more thickly traded. so up here when it starts to kind of run into a little resistance at to 18 to 19 I kind of was like oh let's see what this does so there's 223 and then it flushes down here to 16, 15, 14, 13 and I was like oh it even hit to 11 there for a second. So I ended up taking some profit off the table I Thought that maybe this is gonna come right back down to two and I hey I better just walk away with some profit.

So I took some profit off the table. It ends up holding this level of 2:11 bouncing back up and on the on the 10-second chart. Here it's actually forming the micro pullback just like it did right here. So the high is around 23.

so over 23 we'll be making new highs. Note that it's just a strong volume. the time and sales which is this here in green is just sewing so much strength. So and then just like that it's up to 29 by 34.

So now I've got a little bit of FOMO cuz I'm thinking man, I sold 5,000 shares at 213 if I'd held that to 233 I would have made an extra $1,200 at the same time had it come right back down to two. I could have been getting out break-even for the whole trade or even potentially for a loss and that's not acceptable. So on this trade I left a little money on the table. but I'm walking away with profit so it's squeezing up.

I'm gonna. You can see this red L Uld right here at 34. That tells us that if it hits that level and holds above that level, the stock will get halted on a circuit breaker. So L Ul D is right here.

It has to stay. The bid price has to stay above this level for at least fifteen seconds for the whole stock to get halted again. if you're not familiar with the circuit breaker halts or things like that, make sure you register to my webinar. It's really a day trading 101 where I break down a risk-management stock selection and chart patterns.

So this pattern right here is a micro pullback. Buying the first candle to make a new high now I was already in from down here so I just held through the pullback. Alright, so now we're at 34 and you can see I've got a 1290 $4.99 of unrealized profit open P&L and I've already locked up 700 bucks. So right here I'm as it's starting to look like it's not gonna halt I Started to get a little nervous and think you know what I better take a little more off the table.

The halt level has moved up hot. levels are based on the stock moving 10% in the last five minutes and so the average price of the last five minutes is always changing as time moves forward. the average price is different and so it's always 10% above the average price. I'm sorry, actually it's 20% and in the case of this stock, so there you get a quick drop: I sold some at 30 and I'm feeling grateful that I did that.

Now we're down at 17 or 19 19 and I'm gonna end up scaling out of this and taking my profit off the table and walking away with about $1,500 which isn't bad for 3 minutes of work. However, I will tell you that when you trade breaking news, the biggest challenge and this kind of like what comes first, the chicken or the egg. You know what comes first, the news or the stock moving. Now obviously the news comes first, the stocks.

Not going to move without the news. but if you're the first person to get breaking news, what do you do with it? Cuz you don't necessarily know if the market will interpret that news positively or negatively and certainly something like a social media tweet related to. you know, a celebrity kind of sponsorship type of thing or whatever it is and you would typically think that would be received positively. But there are other headlines that you'll sometimes see.

You know FDA FDA approval or Pat and result or something like that the market just doesn't really respond to. So rather than searching all day long for breaking news which every minute of the day there's a news headline coming out What? I wait for is a stock to respond to it and then I know that the market is interested and so I waited for the stock to respond and then I bought on the first pull back with a tight stop. All right. So when I was in here at Ninety Eight and there were 95, 96, 97, 98, my stop was at 89.

So I was using about a seven eight cent stop. risking about seven eight hundred dollars for a total profit of 1500. Thats a two to one profit or loss ratio. I'll risk a hundred to make 200, 700 to make 15, 14, 14 1500.

That's my risk management philosophy, so on this one, it ended up working out really well. and but there are certainly times where you'll see a stock that has breaking news that you might think is positive and then it just drops really, really hard and you're like huh? That's weird. For some reason investors thought it was negative and then people panic and sell here. Some traders thought it was positive and people jumped in and kind of.

It's this kind of group mentality where it's self-fulfilling prophecy. The market kind of starts to do based on the initial reaction and then it just continues because that was sort of the initial reaction. It's a little surprising to me that this is now back at $1 84, up only 8% But that may be because it's not an official partnership. it's not an official sponsorship.

It was a tweet and that was it, right? and that might not really materialize. I Mean who knows if that's gonna turn into more sales for the company or maybe it won't. So this one's back down. Ad Ap over here is up 257 percent.

Again, a little bit of a different type of trade on AD Ap because of course the news was out much earlier in the day and so traders and investors had a lot of time to react to it. But as the momentum starts to increase, you know traders can start to get more and more aggressive trying to capitalize on these opportunities. and that's where you can see some real volatility. The good news there is that with volatility comes opportunity.

And so if you manage your risk, you keep really tight stops and you jump in at low risk pull backs. Like let's say, right here or right here, then what you're essentially doing is you're capping your downside risk and you're maximizing your upside potential. All right you guys. So I hope you've enjoyed this.

This is kind of a just that ended up being a perfect breaking news example. It didn't end up being my biggest breaking news winner of all time by any means. If it squeezed up to 250, 3 and 4 and kept going, then maybe it would have been, but it didn't do that. But doesn't mean there wasn't an opportunity to make some money.

So as always questions, Comments: leave them right down below If you want to learn more about my strategy. how I find these stocks and things like that, make sure you check out the link to register to my next webinar which will be right down below in the description. Alright so again, I'll see you guys for the next episode and questions. Comments: leave them below hey did you know every morning? I Go live to stream at pre Market Watch list.

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