News based investing usually ain’t profitable.
Yesterday, the news came that Isreal retaliated on a missile attack by Iran. The market’s opened gap down. Some people sold off in panic. Some went short on expectations of further escalations.
By midday, Iran denied that there were no attack from Isreal & they don’t plan to escalate the issue further. Markets recovered. Those who sold in panic repent their decision. Those who shorted had to cover back at higher costs.
If your strategy involves buying & selling mainly on news, chances are you’ll find it difficult making money in stock market.
Buying quality businesses at reasonable valuations and holding on to them irrespective of what market does, rewards over a long period of time. This is the ‘strategy’ I follow. And it’s working perfectly fine with multiple Multibaggers in my portfolio.
