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Options Part 2 The Simple Basics of Stock Options Trading Trading With the Market Trends By David Jenyns
News, good or bad, trumps all other market trends. Good news about a company, or about another company in the same sector if the sector is a hot one, can trigger sharp rises in stock prices. The key to taking advantage of price runs started by news is to get in early, before everyone else has. Obviously, if you're the last one in, you'll buy at the highest price and then watch the stock price go down.
Likewise, bad news can send a stock's price plummeting. And, like everything else market trends, are not whether the news is really good or bad, but what the market perceives it to be. You might not think the market trend's reaction to a piece of... [ Read Article ]
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