I have two simple strategies that I want you guys to comment on. 1. Buy and sell based on news. buy when: * A new product or service is going to be released and is highly anticipated. (Windows on the Mac...stock went up 8+ points in two days!). * A better ceo takes over the company * A company is coming out of bankruptcy * Mergers * Lower interest rates * lower cost of oil ect.... Sell when: * lawsuits * Poor CEO's and management * faulty products/services * When employees strike * higher cost of oil * higher interest rates ect... strategy 2 trade a stock based on earning reports * short when earnings are lower than estimated * buy when earnings are = or above estimates. - Nate
Translation-----------Do something based upon rumor and then reverse upon the confirmation of the expectation? Most of the time, your "strategy" should be wrong when you buy based upon bullishly-construed news and vice versa with bad news. Oil prices are at record highs and yet the overall market is at ~5-year highs. You would have been crushed being "short" one or the other. Your "strategy" can work on a shorter-term basis but you still have to limit losses and decide which news items are relevant among all of the BS that passes for news today.
i ve been doin' exactly da same for ages'n' never felt da urge or need to change me strategy...if u good at it returns can be above those who don't trade news imo...u only need to look at da vols'n'ranges of those issues affected by news to get a grip on it.