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