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Does News Really Matter in Trading?

Now that we know that the price of the stock needs to hit a certain price premarket to activate warrants and hit enough day traders scanners to generate interest, we need to know how they do it. Most of the stocks that gap have news on the day. Most stocks that gap up are propped by smart money. Remember that market makers need to move the stock in favour of smart money.


In the small-cap world, the news is mostly there to create hype. Most of the time it can be recycled news or news that do not fundamentally change the value of the company.

• Results of phases 1,2

• Presentation at conferences

• Presentation for patents

• Earning where the numbers are compared against non-meaningful quarters to get make it look good

• Recycled news

• Announcements of something

• Initial announcement... so it's not as meaningful as when they actually close the merger next quarter

News that do matter:

· When it is a merger and closed the deal.

· When it is a reverse split

· Successful completion of phase 3


Here is a list of headlines. In almost every case of Bio-Tech stocks, the stock faded. The headline was either recycled news or had no meaningful impact on the company. A more complete list for statistical analysis can be found here. {LINK}


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There are thousands of trading strategies out there but which ones work and which ones don’t. Which one is the most profitable? We answered that by testing the 5 most popular strategies taught in chatrooms that charge people thousands of dollars.

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