You are lucky when....

[HaShev]

When your more weighted positions earnings tank your stock during market volatility which would have occured anyway. Earnings a day or week later and you could take double the hit.
The last 2 days my more weighted positions (safer preferreds) had their regular stock destroyed, preferreds down more then normal but no way near the regular stock's free fall.
Usually that makes the regular stock a buy and springs back the preferreds to where they should be. Example: the one hit yesterday is up today as is it's regular stock. Luck is when this happens during a big market drop and not a
rising one as your portfolio damage matches the market and later dead cat bounce brings you back up along with opportunities to purchase more attractive priced stocks with higher dividends,
higher profit range, better risk to reward ratio,
to boot.

 

[debbiedowner]

You see what the market is down right now because of the announced tariffs?

 

[william the wie]

Any and all contra assets help reduce risk to reward but it does tend to get complicated.

 

[HaShev]

Playing the biggest losing stocks (seeking daily lists of them) can be rewarding due to the short covering bounces even in the very same day.
However, as you say complications are usually due to what industry they are in- as a dog stock in a dessimated industry can continue tanking, but an unnecessary overly sold stock due to missunderstanding earnings that's in a thriving sector with now bigger dividend percentages can be great day trades or range trades.

To answer DebbieDowner, that's where cash on the sidelines help scoop up the contrarian or back to respecatble low PE stocks, ESPECIALLY those with better forward PE's that are now priced as great buys.
Specific stocks you buy and sell ranges on every year, don't get back to their low range to buy back in unless you have these over blown volatility moments. If you buy high just to be in the fame then yeah, says like these stink, but if your strategy is specifically mixing income instruments and range trading and only buying contrarian and low end range stocks, you weather the corrections and the bottom allows putting more cash towards both long and short term trades in anticipation for the next leg up.

 

[HaShev]

Missunderstood earnings:
example: a company that spends a lot to lessen its debt by buying it's higher interest debt instruments like it's bonds or preferreds.
That shows negatively in the quarter, but in the long run profit margins will be better with the lessen debt and ratings go higher due to less leverage. People panicking over the report might miss the how and whys and market makers love taking advantage of that missinformed knee jerk reaction.