Course 203: Understanding the News
The Bottom Line
In this course
1 Introduction
2 Stock Indexes
3 The Dow Jones Industrial Average
4 The S&P 500
5 The Nasdaq Composite
6 "Noise" Versus News
7 Negative Earnings Surprises
8 Analyst Upgrades/Downgrades
9 Newsworthy Events
10 The Bottom Line

Successful investing requires you to keep a steady hand. Your patience and willpower will get regularly tested as the stock market reacts to news, sometimes justifiably, other times not. Just remember that not every bump in the road is the edge of a cliff. If you react by racing to sell your stocks on every little piece of bad news, you will find yourself trading far too frequently (with the requisite taxes and commissions), and often selling at the worst possible time. But by using focused discipline in separating the news that matters from the noise that doesn't, you should emerge with satisfactory investment results.

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