Lockdown continues – and hopefully the volatility too. For the last few weeks, I have seen only my screens, my gym, and my bed. Last week’s highlight of AA. carried on rising nicely, and other stocks have been moving quickly too.

I also made some progress on finding stocks that may be worth going long on even in a falling market. Mainly because one of them showed themselves to me in the form of an RNS. 

The hour between 07:00 and 08:00 is the most important hour of a trader’s day. This is when the RNS feed begins running, and the trading day properly begins. Results, trading updates, contract wins, bookbuilds and placings, and directorate changes all begin to appear. Many of these contain tradeable information. 

I make it my goal to eyeball every company name and title of the announcement, in order to quickly make a judgement whether it is worth opening. If it is – and the information contains something that may move the price – I write it down and continue my search. 

Once I have various RNSs, I then plan my trades. For example, Learning Technologies (LTG) announced a good RNS yesterday stating that the Current financial year has started well and is in line with management expectations; we have not yet seen a material impact from the ongoing COVID-19 outbreak on our performance”. 

Looking at the chart, there was plenty of supply in the market the previous day. It was possible that the market had priced in a downturn and so this news could mean a potential rebound was on the cards. 

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Unfortunately, in the early minutes of trading selling pressure pushed the initial rise back, and there were plenty of AT trades selling – so I hit the bid and took the loss. 

The price continued to slide, and this is a good example of why cutting losses quickly is a good trading skill to have. The first cut is always the cheapest. I don’t have a problem selling, because I can always get back in. Holding a loser because you want to get back to breakeven is ego trading. 

Another reason why getting into the habit of keeping up to date with RNS announcements is because you build your own mental database of stocks. You get to know…

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