How important is a catalyst in a stock

[Joseph Fisch 5]

When I get the watch list in the chat room every morning, I don't get see the news behind it. My question is how important is a catalyst in a stock? Isn't numbers good enough? And where do you get your news?

 

Thanks

[magik570 0]

I believe the volatility and volume are more important than the catalyst.. catalyst does not always move the stock.

If you see good movement, ATR> $.50, good volume and good setup in the 5 min chart... that's what is needed the most.

 

 

 

Disclosure: I am a newbie still in study.

[Robert H 455]

Also, sometimes the catalyst and price direction are completely opposite of what you would expect. For example, good earnings leads to sell-off in first five minutes from profit-taking. Even last week, ESRX tanked $10 after the buyout news. I agree with Magik that technicals are more important to day traders.

 

https://finviz.com/ is a great site for stock news.

[Joseph Fisch 5]

Thanks guys! That what I was thinking too. I don't see the big need of a catalyst when you're only going to be in a trade for five minutes.

[Robert H 455]

Joseph, did you see DKS today? Missed earnings, huge gap down, rallied back from -10% in a red market. Perfect example right there :)

[Joseph Fisch 5]

Robert, I did see DKS, and saw Andrew getting slaughtered in the first few minutes... Basically, earnings can be a reason/excuse to move either direction.

[BBT Member 001 27]

Catalyst is extremely important. If you do not trade stock's in play or with news that affect it you will be basically playing the market. If a stock is not in play day traders won't be in it so the price action will have a high probability of emulating the market which means price action will not be moving it but probably algos emulating the market or sector...

 

This is a high level answer...If you want news on a stock go to FinViz.com