Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I was trading US steel stock on Friday and was caught shorting it before the Commerce Department announced that it would recommend steel tariffs.
I got caught on the wrong side. Is there any way to avoid a situation like this with any tools/news that tells a major event/announcement is about to come up with regard to a particular ticker?
Thanks!
Can you help answer these questions from other members on NexusFi?
It's important for whatever market you trade to know when the news is coming out. Did the Commerce Department have a scheduled release on Friday? A quick Google search is telling me that they had a Section 232 Report release. The other thing you can do (once you know your market better) is watch the bid/ask size as it approaches a news release. If US Steel stock is usually 300 shares bid by 200 shares ask, and then it suddenly drops to 4 bid by 7 ask, you should realize that something is about to drop that has players unwilling to risk their capital.
Overall, it's really about knowing your market. Sometimes Trump will tweet something inane that pushes the market around; there's no way to dodge this event risk other than just staying out of the market. Usually though, event risk is totally avoidable if you know the news schedule beforehand.
