Hi, Millenial Mark.
I think one have to differenciate "the trader" first!
In my opinion many moves at the Stock markets are not caused by News at all. Institutional Investors and Bots do have their fixed strategy. Private investors may do their Orders based on News but they will not move the Market.
Furthermore lets take one of your examples, a Bank is uncovered for fraud. How low will the Price go? When will you exit you position? The same problem on the other side, there can be extremely good news but how can you tell when to sell? I would rather look for the technical analysis instead of chasing the news.
But like I said in the beginning all of this depends on the trader himself (long-term, short-term, day trader) and his/her strategy and mindset.
Myself I am constantly trying to improve myself but I am no professional by no means.
Thank you for your post this led my to think about news again.
RE: Trading Quote #5 "It's not about what happens, but how you react"