Blocking/dropping stocks due to news

Discussion in 'Strategy Building' started by giggollo, Mar 28, 2006.

Do you close positions or avoid trading certain stocks due to news

  1. Yes

    8 vote(s)
    66.7%
  2. No

    4 vote(s)
    33.3%
  1. Ok, heres a list of news types...for which of these would you take a stock off your list if you were supposed to trade it that day (due to your system rules) or close a position you're holding in advance of an upcoming news announcement? Also do you find that blocking or staying out of stocks with these types of news items improves your performance overall?

    1. Earnings
    2. Downgrade
    3. New offering of shares into the market
    4. CEO/CFO leaving
    5. Lawsuits brought against company
    6. Court decision affecting the company (eg RIMM recently)
    7. FDA decision or clinical trial announcements (biotechs/pharma)
    8. SEC investigation (formal or informal)
    9. Earnings restatement
    10. Another stock in same sector having bad news and/or sharp fluctuation in price of a related commodity (eg oil for oil stocks, gold for gold stocks etc)
    11. Staying totally out of market and/or closing all positions due to severe geopolitical events, terrorist attacks, natural disasters, severe movements in commodities prices

    Feel free to add to the list