If you’re a budding day trader, then you probably know that market news is key for finding trading opportunities. Having access to professional stock market news can make the difference between high profits or big losses. That’s where a professional stock market Newsfeed comes into play to help you filter through the noise and find opportunities.
In this blog post, we’ll break down why day traders need stock market news, what to look for, and how to find it using Benzinga Pro.
Why Day Traders Should Use Market News
Why should day traders use market news?
The simple answer is that news events move stocks. News catalysts are events that often affect stock prices—positively or negatively.
When you’re a day trader looking to capture price action, looking at news is key to discovering new opportunities.
Additionally, news events can cause volatility and volume for the stock. Higher volume is important, so the stock is more liquid, making it easier to buy and sell the stock at your price target.
Overall, news catalysts can greatly impact the direction of a stock trend and can result in significant shifts in the chart.
What Market News Should I Look For?
There are a lot of news catalysts you can look for that you can use as a starting point for finding opportunities. Here are a few of the different, common news catalysts you may want to look for.
Earnings
Earnings season typically results in a spike in trading activity. If a company beats or misses earnings expectations, there can be increased volume and price action. This could be a great time to analyze these stocks and see if it’s something you’d like to trade.
Breaking News
A more broad category, but it’s always a good idea to look out for breaking news that might affect a stock, such as new product offerings, mergers and acquisitions, and other big news.
Take Greenland Technologies Holding Corp, which traded higher after they reported it will offer integrated electric drivetrain systems to clientele to support electric forklifts using lithium batteries.
Biotech Keywords
Biotech stocks are ripe with price action and could be a sector to look at for potential opportunities.
Some keywords to look for include:
- Primary endpoint
- Topline results
- Statistically significant
- Lifts clinical hold
- FDA approval
- Clinical hold
- Phase 1
- CRL (This is related to the FDA requiring more information)
Read More: How to Create a Benzinga Biotech Workspace.
Impact of the News
Although it’s important to look for news that affects the individual stock price, it’s also important to look for news that will impact the future outlook of that stock. Make sure you’re analyzing how the piece of news is affecting the company, sector, and the market as a whole.
For example, when COVID-19 hit in 2020 it affected many sectors including biotech, technology, and healthcare sectors. Furthermore, with country-wide and state-wide regulations put into place to help stop the spread of COVID-19, much of the entertainment sectors such as movies, restaurants, and similar institutions were hit as a response to the changing economic state of the world.
How to Find Market News in Benzinga Pro
Staying updated on market news faster than other traders can be advantageous for your portfolio. If you’re looking for real-time market news, you’ll want a stock market Newsfeed that can keep you updated in real-time on market-moving news, a customizable platform to help you see news that fits your trading strategy, and a place to get reliable sources. Platforms such as Benzinga Pro can help you achieve all these factors necessary for finding new trading opportunities.
Benzinga Pro’s most used feature is our Newsfeed. The Newsfeed is in real-time and you can easily customize it to fit your trading needs. Additionally, you can create multiple Newsfeeds for different uses.
You can easily filter the Benzinga Pro Newsfeed by:
- Sources
- Categories
- Sectors
- Watchlists
- and Keywords
Tip: The sources and categories filters can be color-coded to help you quickly identify where exactly that news piece is coming from. This helps you make quick trading decisions while keeping you on track with your trading plan.
You can also create watchlists and turn on desktop notifications in Benzinga Pro, too.
Additionally, the Benzinga Pro Squawk is a great tool to get audio alerts to key headlines and breaking news.
Get started with stock market news for day trading when you sign up for a Benzinga Pro trial. All you need to do is click here—no credit card required for sign up!
Disclaimer: Benzinga is a news organization and does not provide financial advice and does not issue stock recommendations or offers to buy stock or sell any security. Benzinga Pro is for informational purposes and should not be viewed as recommendations. Benzinga Pro will never tell you whether to buy or sell a stock. It will only inform your trading decisions. You can find our full disclaimer located here.