Yes, I suppose depending on who is doing the buying or selling at the time, and what their motivations are, the stock could go higher or possibly fall lower.
That’s the reality of basing one’s entry in, or exit from, a stock on the feedback from the charts.
Therefore, IMO, shorter term traders should always adopt a stop loss strategy in an attempt to mitigate and define their risk as best they can.
The Buffett’s, Munger’s, Schloss’s, Lynch’s etc.. of this world say they prefer to make their own company evaluations and not get involved with day to day, or even week to week price predictions.
One doesn’t always know what’s behind those shorter term buying or selling decisions.
As you said, ”I’ve found that I can never predict how markets will react to actual news”.
I’m sure you’re not the only one in that regard !!
But one is unlikely to get poor by taking a “good size profit”, so let’s hope it happens for you on a very regular basis ! |
