So you find a stock to trade and you jump in ... and then you fire up your newsfeed. That’s when you see it: a class action lawsuit against the company. What do you do? Let’s talk about how much this matters in the world of low-priced stocks and how you can approach the situation...
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Let’s say you’re in a particular stock, and as you watch the news, panic starts to set in ... A law firm just announced a class action lawsuit against the ticker you’re trading. You try not to let fear take hold, but honestly, you’re freaking out.
Calm down! Take a breath ... or ten. First, you don’t necessarily have to fear this situation. Should you be aware of any lawsuits against the companies you trade? Yep. BUT ... it’s almost always a non-event.
Often, you’ll probably see ‘ambulance-chaser lawsuits.’ And these are really just law firms that are fishing for business.
Now, when a stock spikes big on a press release, uninformed traders see the news and buy the stock. The stock spikes, and they're green in the trade … and then they overstay. Too many traders don't have realistic expectations of this niche. Far too many don’t follow any trading rules.
So what could have been a winning trade turns into a loser when the stock gaps down over the next day, week, or month.
And some of these law firms recognize how to take advantage of these frustrated bagholders. They know there's a decent chance that the bagholders will join a class action lawsuit.
But the market’s still unpredictable. More news could come out. The market could tank or the stock could still pull up. So always have your stop-loss in. Stick to your trading rules and stick to the price action!
Understand what ambulance chasing is and how it works. Understand the mindset of losing traders. Be prepared to cut losses and exit. If you see a lawsuit and your stock is still trending up or even moving sideways, there's no reason to panic. But if it’s tanking ... get out of that trade!

#StocksToTrade #StockMarket #DayTrading
*Tim Bohen teaches skills others have used to make money. Most who receive free or paid content will make little or no money because they will not apply the skills being taught. Any results displayed may be exceptional. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable.
You can lose money trading stocks. Do not invest money you cannot afford to lose. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services.

By Stock Chat

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21 thoughts on “Traders! should you ignore lawsuits against companies?”
  1. Avataaar/Circle Created with python_avatars Pedro Soto says:

    I did a rapid sell Tru Havana syndrome & I can't find a lawyer or how to claim my money every one is acting like nothing happened 🕜🕡🕣🕥🕧🕐🕒🕓 sells

  2. Avataaar/Circle Created with python_avatars Scottie Harris says:

    The reason I came to this video was to figure out if companies ever get sued on behlaf of the the stock owners and if we lose money will there ever be an instance where you are repayed some of your loses because the company participated in neglegent business practices like carvana

  3. Avataaar/Circle Created with python_avatars Gurdeep Sangha says:

    Quick question, if there is a frivolous lawsuit, and it did do damage to the stock price. How long until the price action recovers? How long does it typically take for a company to get cleared from the DOJ?

    Any ideas? Look forward to your response!

    And great video by the way!

  4. Avataaar/Circle Created with python_avatars Hindi sansar says:

    I was holding EHang shares worth $1k and it went down because of legal investigation lawsuit.
    Now the legal corporation is inviting shareholders to join them so we can get refund .
    Do i need to pay them(their fees?) if i get my lost money back ?

  5. Avataaar/Circle Created with python_avatars Jonathan Olivares says:

    How do you see HCMC VS PM lawsuit playing out?

  6. Avataaar/Circle Created with python_avatars J. Church says:

    So, what about the other way around?
    HCMC has filed a suit against Philip Morris(PM), over a PATENT INFRINGEMENT with HCMC's "Q-Cup" vaping device.
    Stock has spiked from hype and is up to "$0.0034" The lawsuit has a set date of Feb26th for PM to respond.
    Will this be a short term dump after the lawsuit settles; or can lawsuits also company changing?(like HCMC winning the lottery)

  7. Avataaar/Circle Created with python_avatars Bored_Shootin says:

    Well put! How would you deal with lawsuit where sec fines a crypto asset, such as xrp. It lost 60% in 2 weeks, and should people be still holding it?

  8. Avataaar/Circle Created with python_avatars Nick Slates says:

    Thanks Tim

  9. Avataaar/Circle Created with python_avatars Robert Priest says:

    Thanks Tim!

  10. Avataaar/Circle Created with python_avatars Артем Заянчковский says:

    👍👍👍👍

  11. Avataaar/Circle Created with python_avatars Rick Fx says:

    Tim thanks for the information, It would have been perfect to see some graphic examples of stocks lawsuits and their technical graphic behavior on your main Screen, but I do really appreciated your time and information in this delivery…🙏🏽Thanks!

  12. Avataaar/Circle Created with python_avatars Derrick Laughter says:

    Thank you! I've been wondering about this. I work construction @ 7am now and have been having to learn trading in pre-market hours (I know, I know. Its the wild west). I have noticed that in pre-market, stocks will spike more after news of a lawsuit is released but I have been too concerned/ panicked about it to stay with the trade plan I had for it and I get out too early. Very helpful, thank you!

  13. Avataaar/Circle Created with python_avatars Got Milk says:

    Awesome. I see these all the time in stocks I thought about playing and made me worry so I didn’t play them and they went up! Thanks. Get it now.

  14. Avataaar/Circle Created with python_avatars MR. HEARTBROKEN says:

    Hey Tim Bohen I just started trading in august 2019,i started on robinhood used webull and yahoo finance as a lil help, I had bought some shares in Snna and NAkd, news came around they were getting delisted at the time I didn't know about your vids until my uncle had got stocks to trade,im currently using the platform and have got to say ive learned a lot over the past 2 months, I made some mistakes in trading lost a few bucks but through watching your webinars on STT, I feel like im almost ready too start trading after a few paper trades

  15. Avataaar/Circle Created with python_avatars AndreYRN says:

    So is stockstotrade a trading platform and a broker in one? Or is it just a trading platform

  16. Avataaar/Circle Created with python_avatars Phil Can says:

    If a company’s employees go on strike, the stock will drop big time immediately. Panick selling.
    This is a great time to buy and ride the wave back up.
    IE….. General Motors strike
    Plus GM’s suppliers of parts like Linamar Corp.
    Linamar on TSX tanked to $36.70.
    Pre-strike was $44 ish.
    Bought on the low and still riding the wave back up. About $1 to go till I’m out.

  17. Avataaar/Circle Created with python_avatars JeanPaul Antonio Towers says:

    thank you Tim B.

  18. Avataaar/Circle Created with python_avatars Alpha _9 says:

    great video man!
    i didn't know anything about these lawsuits and whenever i saw a lawsuit i stayed away from that stock no matter how good it looked!
    thanks alot

  19. Avataaar/Circle Created with python_avatars freedom songs says:

    short it

  20. Avataaar/Circle Created with python_avatars Joshua Chisum says:

    Hey Tim, been tuning into your podcasts and videos for a couple years now. Always impressed with your presentations. My experience watching these charts is that these lawsuits are often times publicity tactics. 😁

  21. Avataaar/Circle Created with python_avatars StocksToTrade says:

    Were you ever in this situation? Did you panic?

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