Breaking news
Noted a number of news-stories recently that have caused the company in question's share price to rise - contrary to the oft commented point that markets respond to rumour not news - I understand this sentiment but I guess sometimes there will be news-stories where there was no preceding rumour and thus in those cases the stock-market will respond to the news-story.
Access to the Live Feed indicates whether they are responding or not and if so positively with buy pressure. What this doesn't inform is to what extent the price will rise and its timescales - for the latter it could be blink and miss it. However a quick TA can inform whether to buy or not.
In these instances should I make another stock purchase where I have already an open position? Should consider this - firstly by paper-trading the proposal.
0 TrackBacks
Listed below are links to blogs that reference this entry: Breaking news.
TrackBack URL for this entry: http://www.stuartdrunsfield.com/cgi-bin/mt/mt-tb.cgi/94

To have more than one open position would cause me to breach my maximum exposure limit.
The alternative to that is to trade less e.g. 50% - to allow for a second position to be sometimes opened. However that does not seem wise as it means I will be investing half most of the time and thus halving my profits most of the time.
I am more tempted with this to open a second account which is just used for such purchases - an account which is about capital rather than income generation. Because then it is about capital I could trade a higher percentage of the account on such stocks - whilst still subject to usual stop loss rules. I would need to consider how much capital I would require and whether I have such available. Will add to Task list.