News Trading: When a major news event occurs that affects the stock market, savvy day traders spring into action. Using this strategy is as simple as keeping up to date with current news stories and moving quickly to buy or sell as needed. How to do it in the right way. Source: Google. Shares of the stock initially moved higher after the earnings. However, as time passed, traders were able digest the information, which caused the stock to sell off by 6.32%, to $111.90, in the after hours. Now, this may have uncovered a trading opportunity in the stock. Trend following is a well-known trading strategy because there are reasons behind why a market is moving in a sustained direction. Accordingly, buying pullbacks is a common day trading strategy. Even during the Great Depression, the US equity market at one point rallied by as much as 30% before resuming its downward trajectory.