Market vs Individual Stock

[Duffman316]

I'd like to get feedback on my thinking here

- I own shares that appear to be trending upward
- this is a relatively short term trade (weeks-months)
- I monitor the price every day
- US jobless rate data comes out and the market takes a drop on opening
- I'm assuming this is overreaction to an individual bit of news and isn't a sign of the start of a downward trend in the market
- Once the news is digested the stock will continue on it's previous path
- Never sell on a single day drop driven by news that isn't directly related to the company i'm invested in

thoughts on my perspective?

 

[Rhody Trader]

I would say first of all that most folks here won't think of a weeks to months holding period as short-term.

That said, I think if that's your holding period then you really don't need to monitor the markets daily until you need to keep an eye on news developments related to your stock. You run the risk of getting nervous based on short-term market moves which blur the bigger trend, which you seem to have identified as a potential issue.

Also, the US jobless data was not a real factor in stocks falling on the open today. They were already weak from overseas trading.