Selling on the good news(redirected from Sell on the Good News)
Selling on the good news
A strategy of selling stock shortly after a company announces good news and the stock price rises. Investors believe that the price is as high as it can go and is on the brink of going down.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Selling on the Good News
Informal; an investment strategy that involves selling a stock when its company announces good news. Selling on the good news assumes that the price of the stock rises, sometimes dramatically, on the good news. This is a minor variation on the buy low, sell high investment strategy, in that it assumes that the good news always causes the price to rise, and that the price will fall again soon thereafter. To some extent, selling on the good news also assumes that the market has not priced out the news prior to the announcement.
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