Try to avoid trading on news, especially if it is easily accessible by the public or by multiple media outlets. Today's technology gives public information complete instantaneous distribution. This virtually eliminates the time lag between the release of the information and the adjustment to the price of the security. It's called the Efficient Market theory. And although it has been around for many, many years, today's speed of communications make it more fact than theory.
Source: http://www.investorguide.com/igu-article-825-stock-basics-hot-stock-tips-what-to-be-wary-about.html
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