There is
a saying
that says:
‘Buy the
rumors,
sell the
news’
News
is
another
factor
that
will
have a
direct
impact
on a
stock.
Of
course,
with
good
news,
the
stock
will go
up and
with
bad
news,
the
stock
will be
hammered.
For
example,
we all
know
about
the BP
oil
spill
in the
Gulf of
Mexico,
at the
height
of the
crisis,
BP
shares
dropped
from
$59.91
to
26.75.
But
they
have
since
recovered
nicely.
As
you
progress
to this
course,
you
will
learn
how to
benefit
when a
stock
is
dropping
like
there
is no
tomorrow.
An
example
of good
news is
an up
and
coming
pharmaceutical
company
that
received
an
approval
from
the
Food
and
Drugs
Administration
for a
drug
that
will
cure
diabetes.
That is
just an
extreme
example
and if
you
know
such a
case,
let me
know so
that I
can
make
some
money.
If
you are
long
term in
this
market
which
you
should,
one
should
not
panic
and try
to
react
to
every
little
bit of
news
out
there.