Buying on the good news is healthier in the long run, and you improve your odds considerably by waiting for the proof. Maybe you lose a dollar a share or so by waiting for the announcement of a signed contract between Sears and Green Acres, as opposed to buying the rumor, but if there’s a real deal it will add many more dollars to the stock price in the future. And if there isn’t a real deal, you’ve protected yourself by waiting.
