Here's a question: When looking for a short-term trading opportunity, is it better to buy a stock that just moved higher on good news, or one that just sold off on bad news?
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buying after good news is the safer play. A stock moving higher on good news has momentum, meaning more buyers are stepping in, and it could keep running.
Buying after bad news is riskier because the stock might keep dropping. Sometimes, bad news creates an overreaction and a bounce-back opportunity, but you need a solid confirmation before jumping in.
Bottom line: If you’re looking for a short-term trade, go with the one moving higher on good news—just make sure you're not chasing at the top.
So which one did u do??? Did u buy the "goodnews" stock or the "badnews " stock.? And how was the outcome?
buying after good news is the safer play. A stock moving higher on good news has momentum, meaning more buyers are stepping in, and it could keep running.
Buying after bad news is riskier because the stock might keep dropping. Sometimes, bad news creates an overreaction and a bounce-back opportunity, but you need a solid confirmation before jumping in.
Bottom line: If you’re looking for a short-term trade, go with the one moving higher on good news—just make sure you're not chasing at the top.