How Earnings News Affect the Stock Price?

How Earnings News Affect the Stock Price?



hello guys um in this video I will die just to explain something related to the news and um some traders they buy the news it means some brokers they supply news for free and some others they try to buy to buy the news and to buy other kind of information so sometimes especially in earnings when we have the break out and we have the gaps that you see always for example we did say Facebook and there are a lotta land a lot so try to be prepared when you are trading try to see always the earnings when the earnings are because sometimes the earnings comes before the market opens and sometimes after the market close okay so why this information of earnings is very important yeah it's really important because some when they see good news about the company they do go and buy as much as they as as as they as they have like money because they know they know that there is like break out either up or down if it is if it is bad news they go and short and the stock if it is good news they go and buy for long that's why almost all companies they have this gap when you see when you see the stocks and especially in Internet stocks in drugs stocks there are some kind of industries that you see this a lot because the news makes a big difference in them ok now for you for for your trading if you want to buy by the news um if you are day trader you should when you see the news you should follow at the time what the traders do because it is not in use by itself that brings your money it's the reaction of the traders ok the reaction of the treated it gives you the money now um sometimes when when it is a good like a good sentiment in the market people they buy before even the news ok they buy and they wait and and then they see the news if it is a good news they stay in the trade if it is a bad news they just said because it's very dangerous maybe it goes down for many points and they lose a lot of money now for you if you are if you are going to use the news if you are not sure what you are doing don't rate this is what i always ask like my subscribers or my viewers if you don't know what you are doing I don't trade don't trade because someone tells you ok it's a good the stock or it will go up which will go down this opinion it's a someone's opinion whatever he is because of the market we have only two ways edit those up put those down so it's not it's not a big deal ok you for example you don't know nothing about the market but sometimes you go along and the stock we have back after you make money although the analysts are against the stock ok so um and most of the time then use right now you should if you are following the news most of the people are day traders ok they trade is because they this day they are following some kind of stocks or they have friends when they see something in the market they tell each other but it's on the same moment it is not next day or next night or next week it is on the spot when the when the news is released and these people they go to the stock and they see what is the impact of this news is the stocks going up they buy if the stock is going down they sell short or they sell what they have okay and some people who are ignorant they don't know the impact of news they get a big surprises so when you buy and for example when you buy and the news is coming from sample earnings you should be prepared okay either to exit the treat or to stay in the trade according to the news okay but for me I'm usually I don't use the trailer that can use but I try to be like careful about the news because it can bring you a lot of money and you can lose a lot of money so when you are in doubt Aiden there are two ways if you are in doubt about the news first don't treat if you are if you are not sure that this will give you money don't trade at all be safe or if you want to trade and you you think that it is a good trade by and see your stop loss it means but try to see if this stock for example last time this stock has like a break up like for example three points okay so if you buy one hand the chairs you will have like for example 300 300 profit 300 the dollars profit now think that it is the opposite think that if the stock lost three points are the same time so you will lose 300 so are you okay to lose 300 in this straight okay so try always to see your risk before you do any trade this is very very important I know for the beginners it is so difficult i will i will tell you maybe maybe some people they don't know about this and they're glorious because they are beginners now what someone is a beginner he doesn't want to think about to lose he thinks to win but the problem in trading you should know your risk before you do anything before you treat before you do a trade make a plan okay say I by how many how many shares i buy why should i buy this stock because of what okay and if i buy what will i make a small scenario if the salt goes goes good how much how much money I can make but if the stock goes down what is my stop loss where should they get out from this stock with a minimum loss because the main thing in trading is you preserve your capital your money if in each trade you lose ten percent twenty percent fifty percent ah no if you go to penny stocks you lose one hundred percent eighty percent say fifty percent I'm not speaking about penny stocks because penny stocks are our problem by themselves okay now i'm speaking about normal socks you should always try to see where is your stop loss how much you can lose if the market is against you so there is nothing that it is sure in the market this put it in mind there are always surprises in the market either by by news earning news or other things okay so and don't believe in anything did they tell you okay if you are always checking the news some people are stuck too TV watching the news the news most of the time are in the price it means when they give you the news most of the time it is always done for example let's say for example Facebook on Wednesday ok Wednesday which is 30 of october they will release their the evenings of facebook now after the close now for you should it check after the clothes if if the if the news are good maybe the stock will have another back out and another gap and you make up you make that much money and Facebook and other stocks will be after the close it means the day they trade wherever they trade either up or down it's not important what is important is after the close when they give the release of information of the earnings it's the company gives the earnings and then the big tree did they decide to buy or to sell short okay so is its nothin happen to Facebook other day it's just to the earth earnings news which make the difference so those who are following with Facebook with me you try to be aware of this there are other stocks is the same okay it's the same we see for example Google some days ago it has a very very large back out up from a 900 it goes to more than one thousand one hundred dollars in in a day okay from from today to tomorrow there will be a big change but people who are following google closely they know the earnings and they see if the earnings are good they buy if the earnings are bad they short the stock okay and you tell me for example how can i buy after the market close this is what we call extended hours so you should see your broker because some brokers stated hours are from four to five some brokers are the market the real market is from four to eight ok 8pm this is where everything closes now from four to eight we try to check France on facebook they try to check facebook from 4 to 8 p.m. on wednesday this wednesday today is 28 of october tomorrow is Tuesday 29 and and Wednesday is the 30th of october2013 you should wait and see what's going on if there are good news and the earnings are better than what our the analyst has have said so you will have another back out and in the morning you will not be astonished because you know beforehand what will in general what will happen because of the news ok sometimes we have surprises but this is the market you should be aware of the market and you should be always and you don't have in your mind but to call surprises you know that the market is made of traders it's not made of something else is status if the traders are buying the stock will go up by force or buying if the stock is going down is because people are shorting or there is a sell-off mutual friend who sells his shares in one day he doesn't even tell you for example that tomorrow I will sell I would sell my shares ok this is an insider information no one will get this except for those who have a friends or or the material friend is their father that is a brother the sister or there I don't know what is it so that's why people they make too much money because of the information but here in the public me and you and everyone else in the public you don't know the information ok since you don't know the information so be careful when you are trading you will have surprises so this is just to speak about the news and most of the time day traders they do they do a lot of a lot of good things they try to follow the trades the news and try to sometimes the tree the news comes before the market okay so for example today the they're all the days were bad it means and the stock is going down for many days and one day and one day the news are coming before the opening of the market before the market opens it means before nine thirty maybe eight o'clock a 30 or seven a company gives the news now if it is good news you will see that the day the people are buying before the market whenever they have the news good news they begin to buy and when 930 comes at the beginning of the of the trading day you will see that the stock has already gained three or four or five or six points or six dollars from last night it's just because the people day they follow this kind of news okay and the day will be a good day most of the time it would be a very good day okay so sometimes the news is on the mid of the day eleven o'clock twelve o'clock one o'clock pm and it means is just the company which releases the the news sometimes I'd wanna clock you have the news of a company and you see the stock was not doing nothing and from one o'clock two for each will go up very very quick and it will gain a lot of a lot of points and people who are following this stuff we get too much money but as you know how many stops we have we have thousands of stocks so at least you should fill a few of the stocks and just keep with these stocks because the market is really very large you never know all kind of socks information even if you know you don't have you have the money to buy all this kind of stuff okay and um most of the time in industry when we have a lot of a lot of news most of the time all the industry do good okay they follow each other for example if internet information providers industry is doing good you will find that most of the stocks are doing good for a reason or another we don't know why all this they have good thing but supposedly they go all together and you can make lots of money okay so this is in general how to use the news before the markets are during the day or after the market closed so be careful of this kind of news because you can have um you can have money f-from it all you can lose money so if if you are a you are in doubt there are two options okay either you don't trade at all because you it's it's it's it's logical because you are scared of the trade don't do it okay try to stay safe now if you want to do the trade and you have an idea that maybe the stock will go up because of the news so what you do you by little okay buy some shares don't buy too much and I hope things go well for you okay so thank you very much and hope this video make a light gives highlights of the news by itself thank you very much and have a nice day