STOCK MARKET TRADING ON GOOD AND BAD NEWS

Posted By on December 7, 2017



You might call yourself a long term investor but sometimes stock market trading is a smart thing to do, sell on negative news and buy on good news. I discuss a few situations where academic research shows how stock prices take their time to react to material news while sometimes, if the news is long term stock prices don’t react at all.
I use the example of Apple (NASDAQ: AAPL) and Lunding Mining (TSX: LUN) to show how stocks react to news.
I also discuss what is shown by academic research about stock prices and their reaction to earnings.
An individual investor should trade when there is a high likelihood that the stock price will drift due to negative news. Being a bag holder for others is not necessary if it can be avoided.
Some use technical analysis but I prefer common sense.
STOCK MARKET TRADING ON GOOD AND BAD NEWS
STOCK MARKET TRADING ON GOOD AND BAD NEWS


This article has 2 comments

  1. Very interesting psychology, thank you and have a nice day!

    Regarding long-term investing I really like Tom Russo's approach regarding strong brands/valie companies in defensive sectors.

  2. You rock! Sven, I am so happy I came across your channel three months ago., I'm learning so much and appreciate the effort you put in. BTW not to long ago, you asked if we are interested in some sort of course? Can't quite remember what it was but I do remember it sounded interesting. How are the plans for that going?

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