I find the problem with paper wallets is that it can sometimes take up to an hour to get your coins back into an exchange and given the volatility of the market that hour could be very very costly for you. I think maybe its best to keep your coins in a variety of exchanges so that if bad news happens then you can quickly sell and buy again at a cheaper price.

Yesterday I read on reddit that Badu had stopped taking bitcoins as a payment method, this and the other news from china recently - i thought was bound to cause a crash so before the Chinese woke up I sold all my coins, left the money in bitstamp and this morning bought again gaining 16 extra coins.

When bad news happens you have to act fast to make money, or alternatively play the long game and hope.