In the market when positive rumors come out, prices often push up because traders will “buy the rumor” – buy the rumor – and when the news becomes official, traders will sell to realize profits.
In fact, this sentence is known to foreign exchange traders (FX traders) because they are often News Traders. In case the US Federal Reserve has rumors of increasing interest rates, the market will The market expects the USD to appreciate, traders will buy USD, and when news comes out, they will sell USD to make a profit.
With positive news, it’s Buy the Rumor, sell the facts, and negative news is the opposite.
In recent days, the market has been affected by many negative rumors, and some investors said they would leave the market.
However, from a personal perspective, the market still confuses Traders and Investors. The above is a Trader and if you are a Trader, you must understand
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Rumors are an inevitable part of the financial market, and some subjects are even proactive
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Dealing with rumors is the expertise of traders, because with traders, the market has more waves to act on
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Accepting to use margin, accepting to hold goods up because of rumors must accept holding down goods because of rumors
So the question is, are we traders skilled enough to put ourselves in such a risky position?
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Would it be possible to lose 70% if when buying stocks, choose carefully, do enough homework and only invest in well-managed businesses?
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Will there be a loss of up to 70% if capital management is done correctly? Or use Margin without knowing risk management
If we have the right investment mindset, even if we are F0 or don’t have time to look at the transcript, there is still a much simpler way to avoid rumors. Even when rumors happen and the market is affected, it is a good time to buy.