02-24-2021, 07:12 AM
Trading on events- pros and cons
<!-- SC_OFF --><div class="md"><p>Does anybody just trade on events? Meaning you read the headlines and try to see if anything is an over or under reaction. I'm wondering the pros and cons to it, and if it's a viable trading strategy.</p> <p>Ex: Capitalizing on the BABA crash after the anti-trust investigation and rumors of Chinese stocks getting delisted back in December. It was an absolutely ridiculous overreaction imo (did anybody really think China would regulate a monopoly? and did anybody really think we'd actually delist them?). It rebounded 25% in a month. Buying shares or medium-term calls during that whole fiasco would've netted a nice return. I played it for a couple weeks but chickened out, wish I stuck it out a bit longer.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Fargraven"> /u/Fargraven </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/lqnz1h/trading_on_events_pros_and_cons/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/lqnz1h/trading_on_events_pros_and_cons/">[comments]</a></span>Kind Regards R
<!-- SC_OFF --><div class="md"><p>Does anybody just trade on events? Meaning you read the headlines and try to see if anything is an over or under reaction. I'm wondering the pros and cons to it, and if it's a viable trading strategy.</p> <p>Ex: Capitalizing on the BABA crash after the anti-trust investigation and rumors of Chinese stocks getting delisted back in December. It was an absolutely ridiculous overreaction imo (did anybody really think China would regulate a monopoly? and did anybody really think we'd actually delist them?). It rebounded 25% in a month. Buying shares or medium-term calls during that whole fiasco would've netted a nice return. I played it for a couple weeks but chickened out, wish I stuck it out a bit longer.</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Fargraven"> /u/Fargraven </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/lqnz1h/trading_on_events_pros_and_cons/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/lqnz1h/trading_on_events_pros_and_cons/">[comments]</a></span>Kind Regards R