News Focus
News Focus
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dmlabuda

05/08/12 1:22 PM

#28590 RE: EarnestDD #28585

Where did you people get the idea that stock prices are controlled by the news? Nothing could be farther from the truth. The ONLY thing that causes the price of a stock to go up is AGGRESSIVE Buying. The only thing that causes the price of a stock to go down is AGGRESSIVE Selling. That's it! Nothing else drives the price of a stock. Everyone perceives the news in a different way depending upon their level of knowledge relative to the company and the industry and many other financial factors. The news only tends to confuse naive investors and trick them into buying or selling in the heat of the moment. That is why there is an old saying about the stock market that you should buy the rumor and sell the news. If you what to know the truth about the news, then take ANY daily price chart for a two year period and plot on that chart all of the news dates (good news in green and bad news in red). Then stand back and look at the over all direction of the trend and see how the news actually seems to affect the price. You will be totally amazed!