What actions did you take in response to news events?
News often induces unexpected market changes, creating new opportunities for investors. Corporate profits disclosures, management structure adjustments, merger and acquisition (M&A) rumors are news events that can cause the stock prices to fluctuate violently. Learning how to trade the news is essential for investors to improve their portfolios.
News events are double-edged swords. If you use it well, you can explore the speculative nature of markets. Otherwise, it's just like gambling in casinos. For an enterprise, fundamentals lie in its infrastructure, culture, and vision. Technical indicators are helpful when evaluating its performance. Unlike the above two, company news can create random but unique opportunities for short-term investors or traders.
News events can be classified into two categories. The periodic or recurring ones can help you gain information about the macroeconomic environment or particular companies.![]()
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Long-term investors love to be informed, while short-term investors usually keep a close eye on and reap benefits from unexpected or one-time events.
It seems that breaking news is more likely to cause significant fluctuations in the stock market. Major news events could be the breaking points of certain stocks and eventually impact the overall stock market. Let's take a look at a few examples.
1. In Q3 2021, $Meta Platforms(FB.US$ has gone through a turbulent time. The drumbeat of bad news has caused its stock price to tumble. On Oct 28, it renamed itself Meta, leading to a surge in the stock price.
2. On Oct 21, 2021, $Donald Trump(BK2592.US$ stocks soared nearly 400% when Trump said he would launch a TRUTH Social platform.
$Digital World Acquisition Corp(DWAC.US$ $Phunware(PHUN.US$
$Digital World Acquisition Corp(DWAC.US$ $Phunware(PHUN.US$
3. On Dec 9, 2021, Elon Musk, the CEO of $Tesla(TSLA.US$ , sold 934,100 Tesla shares. Musk said he was considering quitting jobs and becoming an influencer full-time on the next day. When the news came out, Tesla's stock price plummeted.
The stock market can change in milliseconds. It's hard to predict what's next. That's the reason why trading the news is difficult. What we can do is to identify the source and evaluate whether the news reflects the truth and, if yes, to what extent.
Let's write your experience of reacting to news events.
You can consider asking yourself the following questions:
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Do you trade the news?
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How did it turn out for you?
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What are the unforgettable news events to you?
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What are the turning points of your watchlist stocks?
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Can you distinguish between bull or bear market by the news?
You can consider asking yourself the following questions:
Nowadays, news and mass media can significantly impact our mentality. Some of them are designed to "amazed" us. To get to the truth, we must dig deeper to uncover the underlying meaning of news without paying much attention to the exaggerated titles. We should be able to find out the potential impact of the news on the enterprises and even the whole industry. After building a solid trading mindset, you should trust your judgment and act rationally to see the big picture.
That's all for today. Please click Do you trade the news? Why, or why not? to join the discussion. Free $AMC Entertainment(AMC.US$ stocks are awaiting!![]()
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Event duration: Now – Jan 24, 2022 11:59 PM SGT
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Disclaimer: All investment involves risk and the potential to lose principal. Neither Futu Inc, nor Futu SG, nor moomoo endorses any particular trading or investment strategy. You should carefully consider your investment goals and objectives when deciding on an investment strategy. Past performance is no guarantee of future results. In the U.S., investment products and services on Moomoo are offered by Futu Inc., Member FINRA/SIPC. In Singapore, investment products and services are offered through Futu Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore.
Disclaimer: All investment involves risk and the potential to lose principal. Neither Futu Inc, nor Futu SG, nor moomoo endorses any particular trading or investment strategy. You should carefully consider your investment goals and objectives when deciding on an investment strategy. Past performance is no guarantee of future results. In the U.S., investment products and services on Moomoo are offered by Futu Inc., Member FINRA/SIPC. In Singapore, investment products and services are offered through Futu Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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YC Xiao : cannot 100% believe news. many a time are not accurate. some are cut and paste, no substance.
NANA123 : Value investing is a slow but sure-fire way to get, while speculation is exciting, fresh, and interesting, which I occasionally use based on the news.
Revelation 6 : The people who produce the news have violated the trust with the readership. They sell papers, not the truth and hid behind the 1st amendment. It’s a damn shame.
Meta MooOP YC Xiao: What we can do is to identify the source and evaluate whether the news reflects the truth and, if yes, to what extent.
Meta MooOP NANA123: Nana has made significant progress.
Meta MooOP Revelation 6: To get to the truth, we must dig deeper to uncover the underlying meaning of news without paying much attention to the exaggerated titles.
MoreOfTheSame : Need to give reader the ability to blacklist certain fake news outlets. MooMoo then shows the top blacklisted outlets so other people will be aware of them.
Milk The Cow : It depends. News make the stock price volatile (a "chance").
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I learnt my lesson in the past that good new like when a company buyout does not mean deal is done. 
Yar, that time I was young & stupid (ignorance). In fact, it's the first time I dived into a buyout company with negative financial (I hesitated that time)... or should I say that's the first time hear of buyout.
Why I regretted a bit is that I'm willing to invest in the company as it's going through restructuring & I think it's positive for very long-term investment.
, how long I need wait to get back my ROI...
I will trade the news if the company's report show positive. (after I done my research=going to be busy
I'm investing in an asset, not gambling. A company need generate growth
The buyer is reputable & the company is not doing that well... so I thought yar confirmed deal (though the shareholders of the offered company seem reluctant to sell). But then the company financial drop way below what the buyer allowed in a given period & the deal was cancel
After buying, I then do my research on the T&C (what is buyout) & a bit regretted + hope that the next following financial will meet the expectation of buyer... Yar, u know what happened next...
I was like F***
Milk The Cow Milk The Cow: Damn
I never intended to write an essay but before I realised it, my hands just type on it's own & it becomes a stupid story
DO NOT READ IF YA BUSY
rich barrett : i want a free amc stock
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