News

Depending on the kind of news,news moves stocks. I get into a stock on speculation and sell on news. I use the increase in volume from good or bad news to get out of my position, so its important for me to be in a stock before the news hits. News on positive financials, acquisitions, buyouts,expansions, etc etc can move a stock in a positive direction. News on negative financials, bad product results, lawsuits, etc etc can move a stock in a negative direction. I subscribe to the different news feeds so as to get the teasers that companies often release in advance of a news release. It is important for me to read the news and determine if it actually is news. What I mean by this is sometimes in attempt to move a stock when they actually have no new news, companies will rehash old news reports in what we call "Fluff" news. Fluff news often has no or negative results and generally doesnt help me at all in making money on a position. Doing my due diligence on a company and becoming familiar with what it has going on and what it does helps me better understand the news reports when they come out. In this day and age of volatile markets, outside news sources can also have a negative and positive affect on stocks depending on the sector they are in. For instance, the recent financial crisis in Europe albeit so far away from home affected all of the markets and stocks in our country. Negative news releases sent our markets in a frenzy, at those times it is important to understand what the news is and if it does actually pertain to the the stock I am in and whether I should exit. Alot of times I may just need to wait for the market to stabilize and then see where my position is. Tomorrow we will look at reading financial reports. Have a great weekend.