Trading on bad news
I’ve discussed before that you shouldn’t panic on outrageous headlines. Because people do, you can take advantage of this. Bad news could be a good time to add to your portfolio. Do your homework and be sure that the bad news in only temporary. Buy the stock as it recovers from the downward surge. You don’t need hit the exact bottom; in fact it is better to buy when you see the stock recover.
Bad news isn’t always bad news for your portfolio. Happy Trading!
