Simple strategy, big profit potential?

C

cashmoney69

I have two simple strategies that I want you guys to comment on.

1. Buy and sell based on news.

buy when:
* A new product or service is going to be released and is highly anticipated. (Windows on the Mac...stock went up 8+ points in two days!).

* A better ceo takes over the company

* A company is coming out of bankruptcy

* Mergers

* Lower interest rates

* lower cost of oil

ect....


Sell when:

* lawsuits
* Poor CEO's and management
* faulty products/services
* When employees strike
* higher cost of oil
* higher interest rates

ect...


strategy 2


trade a stock based on earning reports

* short when earnings are lower than estimated
* buy when earnings are = or above estimates.

- Nate
 
Translation-----------Do something based upon rumor and then reverse upon the confirmation of the expectation? Most of the time, your "strategy" should be wrong when you buy based upon bullishly-construed news and vice versa with bad news. Oil prices are at record highs and yet the overall market is at ~5-year highs. You would have been crushed being "short" one or the other. Your "strategy" can work on a shorter-term basis but you still have to limit losses and decide which news items are relevant among all of the BS that passes for news today.
 
i ve been doin' exactly da same for ages'n' never felt da urge or need to change me strategy...if u good at it returns can be above those who don't trade news imo...u only need to look at da vols'n'ranges of those issues affected by news to get a grip on it.
 
Quote from goldenarm:

How about selling when your stop loss is hit instead of all those other indicators you mentioned?
More...


that would be mandatory if u wish to survive never mind make money
 
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