How I Beat The Market By Analysing Economic Data & 🗞🗞🗞 Instead of “Buy the Rumor🗣🗣, Sell the News📰”

LMSunshine
2023-02-25

"Buy the rumor🗣🗣, sell the news📰” is a trading strategy that can be used by traders eyeing short-term profits.

✅ In this strategy, traders buy a security based on speculation about an upcoming 📰 event & sell the security when that 📰 is announced.

❌ Disadvantages of the strategy include lack of accuracy & potential loss of opportunity on decisions not made quickly enough💸💸💸

➡️ A common example of “Buy the 🗣🗣, sell the 🗞🗞🗞” in the stock market is trading based on the expectation of a company's quarterly earnings report. Perhaps there's a rumor that a company is expected to provide more revenue to shareholders than previously thought. In that case, traders will buy the stock quickly to take advantage of increased dividends or stock prices. Once the company has its earnings call or makes its results public, & IF indeed the stock rose on strong revenue, the traders will sell their shares to turn a profit💵💵💵

How Might This Trading Strategy Go Wrong💸💸💸❓

(1) If there's a rumor about an upcoming 📰 event, chances are that the market has already moved in the direction of the 📰 & the information is already "priced-in". If that's the case, the market may not move as much as expected when the news is finally made official & traders who entered LATE might be burned🔥🔥🔥 when the 1st batch of traders sell their shares, causing the stock’s price to decline significantly or crash ➡️ My example: Possible Short-Squeeze📰 on a meme-stock especially.

(2) When the 📰 itself did not live up to the expectation. For example, in a bear market a company that beats expectations in its quarterly earnings may still see its stock price fall because the good news may not have lived up to the hype ➡️ My example: BABA’s earnings that just happened on 23/2.

(3) When traders are inexperienced or are slow in decision-making. Remember the saying: Time⏰ & Tide🌊 Waits For No Man😅❓In the stock market, a fewww seconds could make the 🌎 of a difference between Profit💵 🆚 Loss💸, Hundreds 🆚 Thousands/Millions. As retail investors, we’ll never have the advantage that hedge funds have in terms of 🗞🗞🗞 or their order technology😅

➡️ As too many things can go wrong with this trading strategy, I try to beat the market by analysing economic data & 🗞🗞🗞 instead😉

Beat The Market By Analysing Economic Data & 🗞🗞🗞 Instead of “Buy the Rumor🗣🗣, Sell the News📰”❓

😉Yes, that’s what I do actually. On 24/2 morning-noon, I wrote 3 posts “Predicting” that:

(1) 🇺🇸 indexes will close down for the week✅

(2) TSLA dropping below $195 soon✅

(3) INTC dropping despite Morgan Stanley’s analyst upgrading it’s rating✅

🥳🥳🥳 I’m still learning but I’m really glad that I’m getting better at this & all my 3 predictions came through even though very few 🐯🐯🐯 managed to read my posts & benefitted from it😔🙁

💡For the whole week, I’ve been analysing the economic data & the stock trends & the days where the indexes closed up or when stocks recovered in mid/end session was against all logic😅

✅ I observed unfavourable economic data recently that would have made investors panic in ⏰ to come because the data would mean Feds need to be more aggressive so tech should fall…BUT…because investors are into the AI🤖 hype now, NVDA’s earnings “artificially pushed” the indexes up on 23/2 (Thu). I recognised that & I sold off my TQQQ to secure my profit so that I could buy back lower for the next uptrend.

✅ I observed that whenever unfavourable data was released, there was always a sell-off, before investors bought the dip. This means that the “early-cautious-experienced” investors have exited, leaving the “late-risk taking-inexperienced” investors to buy the dip. The intense selling then buy the dip is a signal🚨 to me that a sell-off will happen soon & it did yesterday (24/2).

$Nasdaq100 Bull 3X ETF(TQQQ)$ $SPDR S&P 500 ETF Trust(SPY)$ $Alphabet(GOOGL)$ $Alibaba(BABA)$ $Pinduoduo Inc.(PDD)$ $JD.com(JD)$ 

Hope these tips help you in your investing fellow 🐯🐯🐯 & Please Help to Click on the “Like” & “Share/Repost” buttons at the Bottom Right corner so that more 🐯🐯🐯 can access this information, many thanks🤗🥰 You will Greatly Encourage Me❣️

Do follow me if you enjoy reading analytical stock research🔍 presented in a fun & easily understandable way & for more 🤖Stock Price Predictions🔮

As usual-🤔💭 Consider POV & Actions of investors + 👩🏻‍💻👨🏻‍💻 Research + 🗑FOMO & Greed = Investing Wisely 🤓🤗 + Accumulating Wealth 💵💰

@TigerStars @CaptainTiger @MillionaireTiger @Tiger_chat 

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Lionel8383
    2023-02-25
    Lionel8383
    Actually im expecting a pullback for Tesla maybe to around $160 or lower. I cleared out my Tesla position for now, locking in the profits
    • kkennn
      Ok
    • LMSunshine
      You don’t think the 1/3 Investor Day will send the stock🚀🚀🚀? Knowing Musk i think he has sth up his sleeves🤔
  • Gloria112
    2023-02-25
    Gloria112
    😊Thank you for sharing your valuable experience. I think there are all kinds of signals and it all depends on whether we are sensitive and attentive enough to extract some patterns in them. Keep up! 🫡
  • Juliaaa11
    2023-02-25
    Juliaaa11
    Great article👍 Too much information hidden in economic data!
  • KryZ
    2023-02-25
    KryZ
    Very nice. Inspiring
    • LMSunshine
      Thanks, glad my post was inspiring to you🥰
  • BruceBryant
    2023-02-26
    BruceBryant
    Wow you are so great! How many markets do you invest in?
  • intheloop
    2023-02-26
    intheloop
    really bring out sentiments of others who experience similarly
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