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Guideline:News monitoring: Difference between revisions
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The following are the things we do once we receive the news. | The following are the things we do once we receive the news. | ||
(a) Apply your analytical skills to judge if the news | (a) Apply your analytical skills to judge if the news is important. | ||
(b) Some news | (b) Some news requires you to have some knowledge about the company to assess them correctly. If you can't judge the news, consider contacting the researcher in charge of the company. However, if the researcher is unavailable, check how the market reacts 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 important the news is. | ||
(c) Once you have | (c) Once you have assessed the news, assign them an importance rating denoted by I and the expected short-term impact on the stock represented by SI. Here is an example; | ||
''SI=-3%, I=9'' | '''''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.'' | '''''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. | 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. | ||