1. What is bad news?
Bad news refers to the recent bad news or policies that will cause the stock to fall, such as: financial fraud, tax evasion, major losses, etc. Goodwill impairment, currency tightening, declining economic data, etc.
Corresponding to the bad news is the good news. Positive means bringing good news, factors that can stimulate the rise of the stock market or financial market. Positive factors include: the country implements loose monetary policy, lowers bank deposit and loan interest rates, listed companies are in good operating conditions, dividends, buybacks, restructuring, etc. All factors will make the stock market positive, the news will be stimulating, and investors will have a high profit-making effect.
Generally, stocks are more likely to fall in the short term after negative news. When the stock stabilizes, investors can comprehensively analyze the subsequent trend of the stock based on factors such as supply and demand, amount of funds, performance, policy, news, etc.
2. Situations of bad news for rising stocks
Bad news for stocks may cause stock prices to fall, but there are also special situations where stocks are bad for stock prices to rise. The reasons may be as follows:
1. Individual stocks digest bad news in advance.
The stock price of individual stocks has already fallen sharply before the bad news appears. The bad news is digested in advance, which will cause the stock price to rise instead of falling when the bad news appears.
2. Affected by the market and industry.
When bad news appears, individual stocks may rise slightly due to the sharp rise in the market and industry.
In addition, when bad news appears, a large number of investors sell their stocks, and some hot money takes the opportunity to purchase these chips at low prices and conduct speculation, thus stimulating a rise in stock prices.
3. Several terms related to stock news
Long-shorting: It is to be optimistic about the stock price outlook, borrow stocks to sell, or sell stock futures, and wait for a long period of time The act of buying it back.
Short shorting: The stock price is bearish in the short term, and the borrowed stock is sold and covered in a short period of time.
Long-term: It is optimistic about the stock price in the long term. It believes that the stock price will continue to rise in the long term, so it buys the stock and holds it for a long time, and then sells it after the stock price rises for a long time to earn the expected annualized price difference. Gain behavior.
Short long: It is the behavior of buying stocks if the stock price is optimistic in the short term, and selling if the stock price does not rise slightly.