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Discover How to Make Money in the Stock Market. Don't be Left Out in the Rain!

Stop Selling Stocks on News and Win Big

Chris Carreck, November 6, 2024February 21, 2025

Stop selling stocks on news and win long-term—it’s the key to outsmarting market traps. Picture this: your friend buys Apple (AAPL), thrilled about its potential, then dumps it on a supply chain scare, missing out on huge gains. News-driven selling trades wealth for worry, but this guide shows you how to stay calm, hold quality stocks like Microsoft (MSFT), and stack wins with patience. You’ll master emotional traps, harness compounding, and build a Buffett-style portfolio that thrives despite headlines.

Table of Contents

  1. Why News Pushes You to Sell Stocks
  2. The Hidden Costs of Frequent Trading
  3. Compounding: Your Long-Term Win
  4. Volatility vs. Value: What’s the Difference?
  5. Stocks That Won After News Dips
  6. How to Stop Selling Stocks on News
  7. Step-by-Step Guide to Winning Long-Term
  8. FAQs About News-Driven Selling
  9. Conclusion: Stack Wins with Patience

Why News Pushes You to Sell Stocks

Headlines hit hard—think “earnings miss” or “regulatory probe”—and stock prices plunge. Selling feels like the safe move, but it’s often a mistake. Why do we cave? Psychology:

  • Fear of Missing Out (FOMO): When others sell, you worry you’ll miss the chance to cut losses.
  • Loss Aversion: Losing $1 hurts more than gaining $1 feels good, pushing you to sell at the first dip.
  • Recency Bias: That fresh headline overshadows years of solid performance.

Studies back this up—Dalbar’s research shows retail investors underperform the S&P 500 by nearly 4% annually due to emotional trades. Avoiding selling stocks on news starts with recognizing these traps. Next time a headline hits, pause and ask: Does this change the company’s core value? Spoiler: It usually doesn’t.

The Hidden Costs of Frequent Trading

Selling on news isn’t just a mental game—it hits your wallet too. Every trade racks up costs that erode your returns:

  • Transaction Fees: Even $5 per trade adds up if you’re jumping in and out.
  • Capital Gains Taxes: Sell at a profit, and Uncle Sam takes a cut—up to 20% for short-term gains.
  • Lost Compounding: Ditching a stock interrupts the magic of earning returns on returns.

Say you invest $10,000 in Coca-Cola (KO) at 10% annual growth. After 10 years, it’s $25,937. Sell and rebuy twice, losing 1% to fees and 15% to taxes each time? You’re down to ~$20,000. Stop selling stocks on news to keep compounding on your side.

Compounding: Your Long-Term Win

Compounding turns small investments into big wins—but only if you stay in the game. Selling on news kills this magic.

Take Johnson & Johnson (JNJ). In 2018, talc lawsuits crashed its stock 10% in a day. Sellers fled; holders won. JNJ’s steady 6–8% annualized returns since prove stopping selling stocks on news builds wealth over time. Patience, not panic, is the buy-and-hold way.

Volatility vs. Value: What’s the Difference?

Not all price drops signal danger. Temporary volatility—think earnings hiccups or analyst downgrades—rarely dents a company’s intrinsic value. Here’s how to tell them apart:

  • Volatility (Noise): Temporary swings from earnings blips or analyst chatter (e.g., a penny shortfall).
  • Value Shifts (Fundamentals): Big changes like losing a key market or a crippling fine.

Microsoft (MSFT) nails this. Its 2001 antitrust scare tanked shares, but its software empire held strong. Long-term holders scored 1,000%+ gains by 2025. Stop selling stocks on news—focus on value, not daily drama.

Stocks That Won After News Dips

Quality companies weather storms. Here are three examples proving patience beats panic:

  1. Amazon (AMZN): In 2018, antitrust scrutiny sparked a 10% drop. fundamentals—e-commerce and AWS—stayed strong. Result? A $10,000 investment from 2015 hit $45,000 by 2025 (~16% annualized).
  2. Apple (AAPL): A 2016 iPhone sales slump cut its stock by 15%. Long-term holders who ignored the noise enjoyed 500%+ gains by 2025.
  3. Coca-Cola (KO): A 2020 pandemic dip didn’t shake its brand power. Shares rebounded, delivering steady dividends and growth.

These prove stopping selling stocks on news lets you win when fundamentals shine.

How to Stop Selling Stocks on News

Sticking to your plan takes discipline. Try these tactics:

  • Set Long-Term Goals: Aim for retirement in 20 years? A 5% dip won’t derail that.
  • 48-Hour Cool-Off Rule: Feel the urge to sell? Wait two days and revisit your thesis.
  • Revisit Your Thesis: Why did you buy MSFT? If its cloud growth is intact, hold tight.
  • Mute the Noise: Limit news apps to once a week—less chatter, less temptation.
  • Use Dollar-Cost Averaging (DCA): Invest $200 monthly in JNJ, smoothing out volatility.

Warren Buffett famously said, “The stock market is a device for transferring money from the impatient to the patient.” Avoiding selling stocks on news keeps you in the patient camp.

Step-by-Step Guide to Winning Long-Term

Ready to resist the news trap? Follow this checklist:

  1. Define Your Goal: Save $1M in 25 years—calculate what yearly growth gets you there.
  2. Pick Quality Stocks: Research fundamentals (e.g., AMZN’s revenue up 20% yearly).
  3. Set a Cool-Off Period: Wait 48 hours before any sell decision.
  4. Invest Consistently: Use DCA—$300/month in KO, rain or shine.
  5. Check News Sparingly: Weekly reviews beat daily doom-scrolling.

Follow this, and news won’t steal your long-term wins.

FAQs About News-Driven Selling

1. Should I stop selling stocks on news?
Yes, unless it guts the company’s foundation (e.g., a game-changing lawsuit). Dig deeper first.

2. How long should I hold for wins?
5–10+ years maximizes compounding—Buffett keeps some forever.

3. What’s the best way to avoid panic selling?
Set rules (like a cool-off period) and stick to DCA to build discipline.

4. Does all news affect stock prices?
No—most is noise. Focus on big shifts like new competitors or leadership changes.

Conclusion: Stack Wins with Patience

Stopping selling stocks on news is how you win long-term. Emotional trades cost you fees and gains, but patience with stocks like AMZN, AAPL, and MSFT stacks wins. Use DCA and a cool-off rule to stay steady. Volatility fades; value endures. Build your wealth the smart way—stick to the buy-and-hold path.

Happy Investing!

General Stock Market AAPLAMZNMSFT

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