Danielle Shay: Trading on good news and bad – pitfalls can cost you

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Danielle Shay, Director of Options and Trader Specialist at Simpler Trading, discusses with Kurt Schemers and Don McKelvey on Traders Nation® what are the best methods for a trader to trade the news, good and bad, and what that formula is. Shay emphasizes how critical it is to determine the technicals on a stock prior to the news, and then, coming in a buying after the news.

Shay also discusses her “Phoenix stocks”, which are one of her favorite plays when a company has bad news and a drop in market price. With that, learn the best way to determine the pivot point after a catastrophic news event takes a stock price down. Hear how risky it is to short events like this and is it better to go long and buy the dip?