Mooers' Strategies: How do news affect stock prices?

Time flies! Let's celebrate another milestone of your investing journey. Thank you all for joining the discussion: Co-Wise: Do you trade the news? Why, or why not?. As the saying goes, "Buy the Rumor, Sell the News." Rumors generate hype and momentum for stocks, even if nothing is actually happening. News has become an integrated part of investing. It could dramatically impact the market. Keeping track of as much information as possible is essential to those who trade the news. However, we should also pay more attention to the reliability of the source.

We are more than glad to receive all of your real-world case studies on this topic. Judging by the tone of articles, you may gain a glimpse into the bearish or bullish tendency of your fellow mooers. If you read between the lines, you may picture certain mooers being hesitant in increasing positions or painfully stopping losses.

@OzzKramer : "One news event was the rumored buyout of Pinterest by $PayPal(PYPL.US)$ . I owned the two stocks and wondered whether to sell a portion of $Pinterest(PINS.US)$ . At that time, I had missed out on claiming gains when the stock price was higher."

@Business Investor : "Take a look at Joe Biden's infrastructure plan, which made Tesla hit its first trillion-dollar milestone. Since then, $Tesla(TSLA.US)$ has been falling, even hitting the lows of $500s in mid-2021."

@cowabanga : "Elon Musk paved his way as one of the most influential market movers via his famed business through his daily tweets, with just a simple remark of valuation being "too high" resulting in a more than 11% plunge in the stock price."

@KDevil87 : "Elon musk..king of tweets that can shake the world. his one tweet of his pet dogs can send crypto rising and crashing."

@Dave Schulz : "Tesla dropped to less than $400 and was floundering. The news of Tesla joining the S&P hit. That day Tesla went from $408 to $430ish. In the next few weeks, Tesla skyrocketed to over $900."

@AM5945 : "I monitored the Covid-19 news in late 2019 and decided to be conservative, so I sold my travel-related stocks and ES3. And I bought back at a much lower price in 2020 & 2021."

@Tyler Fosdick : "I have shares in $American Airlines(AAL.US)$ . Omicron, staff shortages, inclement weather have contributed to fighting cancellations and delays. I believe that I make sense of the bearish heading to build the bullish decision long term."

@cowabanga : "A whopping 2400% potential return based on the meme chase; I am guessing anyone who dipped their hands into this gold geyser at the right time could rake in considerable profits."

@Mama Cass : "With $AMC Entertainment(AMC.US)$ , I read the exciting news about its explosive growth opportunities and reaped a 120% return on investment! I would've gained more if I'd held out (bought in at 6/share sold at 14, but it went to 46)."

@Jfee : "On 21 Oct 2021, I first heard that Trump Media is becoming a publicly listed company. I immediately bought $Digital World Acquisition Corp(DWAC.US)$ shares in premarket time. I have doubled my account number soon after that."

@NANA123 : "On 18 Jan,  $Microsoft(MSFT.US)$  issued an official statement saying it would acquire  $Activision Blizzard(ATVI.US)$ for $95 per share in an all-cash deal worth $68.7 billion. Affected by this news,  $Sony(SONY.US)$  tumbled 7% to close and then fell 2.4%. In contrast, ATVI is up nearly 40%."

@steady Pom pipi : "Paying attention to earnings news allows us to deploy buy or sell stocks in advance, and paying attention to earnings news in advance for short-term trades can make your businesses profitable." $Netflix(NFLX.US)$

For more valuable tips, please view Co-Wise: Do you trade the news? Why, or why not?. News events are usually unplanned and carry risks. It takes a great deal of courage to act on them. With practical strategies in mind, you may catch the rare investing opportunities in time and reap profits out of them. Act when you can and leave when you still can. Timing is everything. Don't forget to take everything with a grain of salt.

Bonus:
Have you heard of the news events mentioned above? Leave your comments to let us know and share what you've learned with us! We'll give away 188 points for each of the 10 TOP COMMENTS regarding quality and user engagement.