6,567
edits
Guideline:News monitoring: Difference between revisions
no edit summary
No edit summary |
No edit summary |
||
| Line 29: | Line 29: | ||
==== (d) Google for news once in a while each day ==== | ==== (d) Google for news once in a while each day ==== | ||
Sometimes, the apps delay sending the notifications. This may have far-reaching consequences on the portfolio. Therefore, googling news on the stock now and then can help us benefit from them as soon as possible. Google has a way of giving you news on each company in one tap. This will reduce eye strain and help you read through the news as quickly as possible. By clicking on: [https://news.google.com/search?q=volkswagen&hl=en-KE&gl=KE&ceid=KE%3Aen<nowiki>], inserting the company's name, and hitting "ENTER," you are given the news company news starting from the most recent.</nowiki> | Sometimes, the apps delay sending the notifications. This may have far-reaching consequences on the portfolio. Therefore, googling news on the stock now and then can help us benefit from them as soon as possible. Google has a way of giving you news on each company in one tap. This will reduce eye strain and help you read through the news as quickly as possible. By clicking on: [https://news.google.com/search?q=volkswagen&hl=en-KE&gl=KE&ceid=KE%3Aen<nowiki>], inserting the company's name, and hitting "ENTER," you are given the news company news starting from the most recent.</nowiki> | ||
=== Step 2 === | |||
The following are the things we do once we receive the news. | |||
(a) Apply your analytical skills to judge if the news are important. | |||
(b) Some news require you to have some knowledge about the company in order to assess them correctly. If you think you can't judge the news, consider contacting the researcher in charge of the company. If the researcher is not available, try checking how the market is reacting to the news. If the market is not yet open, looking at the pre-market movements and the reaction of futures can tell you how significant the news is. | |||
(c) Once you have assess the news, assign them an importancy rating denoted by I and the expected short term impact on the stock denoted by SI. Here is an example; | |||
''SI=-3%, I=9'' | |||
''A social media post by Meta's CTO Andrew Bosworth indicate that the company will continue spending 20% of its total cost and expenses in reality labs in 2023.'' | |||
In the above example, the news on Meta is expected to cause an impact of -3% on Meta stock and the news has an importancy rating of 9. | |||
(d) After you have assessed the importancy and expected short term impact of the news, you can decide to post it in the relevant discord channel or not. Bear in mind that not all news should be posted in Discord. Some news have low importancy rating and may not affect the stock at all. Hence, to be efficient, avoid posting them. | |||
(e) If the news need to be acted on immediately, contact portfoio manager as soon as possible by sending him a message. The message can look like this: | |||
''Unemployment report big EXPECTATION MISS. Despite all efforts by the Fed unemployment numbers are are FALLING to 3.5% from 3.7%. This might be a shock to markets as economist and market participants EXPECTED an unemployment rate of 3.7%. This could force the FED to hike rates even more aggressively. The market is starting to react negatively and is down by 1% and i think this could worsen. Monitoring the situation now.'' | |||
If the portfolio manager takes long (long here is subjective i.e it depends on how long the news should be acted on) to react to the message, do the following; | |||
(i) If the news is very urgent: Ring him on Discord continuously. | |||
(ii)If the news is urgent: Ring him once. | |||
(iii)If the news is less urgent : do nothing | |||
(f) As you wait for Moritz to react to the news, you can gather more information about the news. | |||