In the fast-paced world of stock trading, the ability to make swift decisions can be crucial. We gathered insights from a founder and a broker associate, among others, to share their experiences with quick decision-making in response to market-shaking news. From leveraging market overreactions to holding based on strong fundamentals, here are four personal stories that shed light on the lessons learned from acting swiftly on breaking news.

  • Leverage Market Overreactions
  • Adapt to Financial Setbacks
  • Maintain Composure Amid Volatility
  • Hold Based on Strong Fundamentals

Leverage Market Overreactions

When I first started investing in stocks several years ago, I was drawn to Tesla. I was inspired by Elon Musk’s vision for the future of electric vehicles and clean energy. In my excitement, I didn’t fully appreciate just how volatile TSLA shares could be in response to company and competitor news, analysts’ reports, and Musk’s own tweets. I learned this the hard way through one such breaking news event that tanked the stock price when I was expecting the opposite.

Rather than panicking, I took a beat to reflect. I still believed in Tesla’s long-term potential, so I decided not to participate in the hysteria. Instead, I took the market overreaction as a quick opportunity to put more money into TSLA at a sudden discount.

This experience taught me an important lesson—not to follow the market if the news has a minor impact on the company’s future in the long run. Instead, use the market’s emotional swings to my advantage. Now, when so-called “bad” Tesla news breaks, I have a game plan. I don’t sell in fear. I get ready to deploy more cash to accumulate more shares at temporarily depressed prices. The stock always rebounds. This strategy has proven far less stressful and more effective than trying to time short-term peaks and valleys.

I share this to encourage other new investors—tune out the frenzied headlines. If you still believe in a company’s fundamentals, use market negativity to calmly buy more at a discount rather than panicking and selling. A little temperance goes a long way in building long-term wealth.

Roman BosqueRoman Bosque

Adapt to Financial Setbacks

Upon hearing the unexpected news of a major company’s financial setback, I had to act swiftly. Assessing the potential impact on my portfolio, I decided to reallocate funds to more stable investments.

This experience taught me the importance of staying informed and ready to adapt. It underscored the value of having a diversified portfolio and a clear risk-management strategy, allowing for quick, informed decisions without succumbing to panic or speculation.

Josh StepplingJosh Steppling
Broker Associate, Treasure Coast Real Estate

Maintain Composure Amid Volatility

While my expertise primarily lies in the private jet charter industry rather than personal investment, I can share a principle that applies broadly: the importance of not reacting impulsively to market volatility. In business, similar to managing a stock portfolio, there have been moments where swift changes in market conditions or operational challenges demanded immediate decisions.

One lesson learned is the value of maintaining composure and conducting a rapid, yet thorough, analysis before acting. For instance, facing sudden travel restrictions, we quickly pivoted to adapt our service offerings without compromising our standards or financial stability. This experience reinforced the importance of flexibility, informed decision-making, and staying true to your long-term strategy, even under pressure.

Fahd KhanFahd Khan
Director of Marketing & Technology, JetLevel Aviation

Hold Based on Strong Fundamentals

When a major tech firm announced a surprising CEO resignation, its stock plummeted. Facing this unexpected news, I had to decide swiftly: hold or sell? Choosing to hold, I relied on the company’s strong fundamentals.

The stock eventually recovered, teaching me the importance of not reacting impulsively to market news. It underscored the value of understanding the companies in my portfolio deeply, ensuring decisions are based on long-term perspectives rather than short-term market fluctuations.

Will LiWill Li
Hardware Engineer, MOKO Technology