NEW YORK ( TheStreet) -- Over the past two weeks several companies announced negative news about their businesses and their stocks got hammered in what I describe as being taken to the woodshed. An investor taken by surprise when this happens often becomes like a deer in the headlights wondering what to do.With a buy-and-trade strategy the first decision an investor needs to make is whether or not the stock-specific negative news is a game changer. Do you wish to continue to own the stock? If the answer is no, simply get out on the old theory that your first loss may be your best loss. If this becomes your decision don't look back as there are thousands of other stocks to choose from.
Bad News Sends Stocks To Woodshed
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts