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Its lower risk because those who bought on 'rumor' are usually way down before news is out. So in theory, you get in at a better price than them anyway.
I agree that buying a stock on the upswing can be good with the right timing, but to buy a stock on news puzzles me. Isn't the adage "Buy on rumour, Sell on news", often true?
This board is dedicated to a day-trading investment strategy where you closely follow a group of stocks and only purchase and sell based on news releases. Stocks are purchased immediately after a news release and sold within a few days. You should select a group of stocks that in total yield no more than one or two news items in total per day. You must be thoroughly familiar with those companies in order to determine how significant the news item is. If the stock value doest appreciate within a day or two, sell at a loss and reinvest in another stock. When you utilize this strategy, you cannot set at sell price target, your simply sell on the gain that is dictated by the momentum of the news release.
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Stock Buy Price Num Shares Total Buy Sell Price Total Sell Gain/Loss