"Buy the rumor, sell the news

2023-02-26

"Buy the rumor, sell the news is stock market folklore for a reason.
Stocks can potentially experience big price spikes based on speculation and rumors. Often, these hype-fueled spikes outweigh the reaction to actual news.
It doesn’t make sense at first. But a lot of things in the stock market don’t make sense until you study, learn, and start to understand how trading really works.
The stock market is forward-thinking. Most people are trying to anticipate what will happen in the future. I like to study the past and look for patterns. That helps me find ‘buy the rumor, sell the news’ plays that I can get in on and ride the wave of anticipation and hopefully generate profits. @Tiger_chat

@Tiger_comments：Is "Buy the Rumor, Sell the News" A Good Trading Strategy?

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

LWayne
2023-02-26
LWayne
so next week, ladt week of feb, should i buy or sell?
Sohtheworld
2023-02-26
Sohtheworld
Wow wow hahaahha
yingyingzoe
2023-02-26
yingyingzoe
K
LISEE
2023-02-26
LISEE
ok
MTamil
2023-02-26
MTamil
👌🏻👌🏻👌🏻
gg123gg
2023-02-26
gg123gg
nice。ok.

Leave a comment

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But a lot of things in the stock market don’t make sense until you study, learn, and start to understand how trading really works. \n The stock market is forward-thinking. Most people are trying to anticipate what will happen in the future. I like to study the past and look for patterns. That helps me find ‘buy the rumor, sell the news’ plays that I can get in on and ride the wave of anticipation and hopefully generate profits.<a href=\"https://ttm.financial/U/3501196737273098\"> @Tiger_chat </a></body></html>","htmlText":"<html><head></head><body>\"Buy the rumor, sell the news is stock market folklore for a reason. \n Stocks can potentially experience big price spikes based on speculation and rumors. Often, these hype-fueled spikes outweigh the reaction to actual news. \n It doesn’t make sense at first. But a lot of things in the stock market don’t make sense until you study, learn, and start to understand how trading really works. \n The stock market is forward-thinking. Most people are trying to anticipate what will happen in the future. I like to study the past and look for patterns. That helps me find ‘buy the rumor, sell the news’ plays that I can get in on and ride the wave of anticipation and hopefully generate profits.<a href=\"https://ttm.financial/U/3501196737273098\"> @Tiger_chat </a></body></html>","text":"\"Buy the rumor, sell the news is stock market folklore for a reason. Stocks can potentially experience big price spikes based on speculation and rumors. Often, these hype-fueled spikes outweigh the reaction to actual news. It doesn’t make sense at first. But a lot of things in the stock market don’t make sense until you study, learn, and start to understand how trading really works. The stock market is forward-thinking. Most people are trying to anticipate what will happen in the future. I like to study the past and look for patterns. That helps me find ‘buy the rumor, sell the news’ plays that I can get in on and ride the wave of anticipation and hopefully generate profits. @Tiger_chat","highlighted":2,"essential":1,"paper":1,"likeSize":51,"commentSize":51,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/9957513797","repostId":9957629328,"repostType":1,"repost":{"magic":2,"id":9957629328,"tweetId":"9957629328","gmtCreate":1677227225464,"gmtModify":1677232426316,"author":{"id":3501196737273098,"idStr":"3501196737273098","authorId":3501196737273098,"authorIdStr":"3501196737273098","name":"Tiger_comments","avatar":"https://community-static.tradeup.com/news/227887b200e9925968650d5db4a8bfb3","vip":4,"userType":4,"introduction":"Tiger Official Account","boolIsFan":false,"boolIsHead":false,"crmLevel":1,"crmLevelSwitch":0,"currentWearingBadge":{"badgeId":"1026c425416b44e0aac28c11a0848493-4","templateUuid":"1026c425416b44e0aac28c11a0848493","name":"Tiger Star","description":"Join the tiger community for 2000 days","bigImgUrl":"https://static.tigerbbs.com/dddf24b906c7011de2617d4fb3f76987","smallImgUrl":"https://static.tigerbbs.com/53d58ad32c97254c6f74db8b97e6ec49","grayImgUrl":"https://static.tigerbbs.com/6304700d92ad91c7a33e2e92ec32ecc1","redirectLinkEnabled":0,"hasAllocated":1,"isWearing":1,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2024.03.21","individualDisplayEnabled":0},"individualDisplayBadges":[],"fanSize":6872,"starInvestorFlag":false},"themes":[{"themeId":"b6bd677649dd4f16bffea678b5703f67","categoryId":"7cbb30544f7e4946acd0f699136a7d66","name":"How to Gain the Courage to Invest in a Downtrend?","type":0,"rnLink":"https://laohu8.com/RN?name=RNTheme&page=/theme/detail&rndata={\"themeId\":b6bd677649dd4f16bffea678b5703f67}&rnconfig={\"headerBarHidden\": true}","description":"Logically we know that a pullback is the best time to buy, but emotionally when we see the stock market is red we dare not make a move. \n------\n[TOPIC]\nHow do we gain the courage to invest in a downtrend?","image":"https://community-static.tradeup.com/news/15eaeb431924c455e67187ca24a80dfc"}],"images":[{"img":"https://community-static.tradeup.com/news/b38aafe31b87ae713876f4d8f7ef65ec","width":"-1","height":"-1"},{"img":"https://community-static.tradeup.com/news/ae4822021d339d24d8328b4919a46a53","width":"-1","height":"-1"}],"coverImages":[{"img":"https://community-static.tradeup.com/news/b38aafe31b87ae713876f4d8f7ef65ec","width":"-1","height":"-1"}],"title":"Is \"Buy the Rumor, Sell the News\" A Good Trading Strategy?","extraTitle":"","html":"<html><head></head><body>\"Buy the rumor, sell the news\" refers to a trading strategy where a trader buys a security based on speculation about an upcoming news announcement or data, and then sells the security once the news is made public.<img referrerpolicy=\"no-referrer\" src=\"https://community-static.tradeup.com/news/b38aafe31b87ae713876f4d8f7ef65ec\" tg-width=\"-1\" tg-height=\"-1\"><h2>1.&nbsp;Why&nbsp;we&nbsp;don't&nbsp;buy&nbsp;the&nbsp;news?</h2>When a good news event comes out, and the price rises, entering on that good news release can potentially be the worst time to enter the market.That is when everyone else who bought the stock at the lower price may be getting out of the market in order to reap a profit.<h2>2.&nbsp;How to“Buy the Rumor, Sell the News”?</h2>A common example is trading based on the expectation on 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&nbsp;release&nbsp;its results and the stock rises on strong revenue, the traders will sell their shares to turn a profit.<h2>3.&nbsp;This&nbsp;strategy&nbsp;might&nbsp;sometimes be inaccurate&nbsp;</h2>Disadvantages of the strategy include lack of accuracy and potential loss of opportunity on decisions not made quickly enoughNo one can time the market with absolute certainty and buy the rumor, sell the news trading strategy is no different. There can be a number of reasons why this strategy could fail to yield a profit for traders.For example,<blockquote>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.</blockquote>&nbsp;<a target=\"_blank\" href=\"https://ttm.financial/S/BIDU\">$Baidu(BIDU)$ </a>released&nbsp;its&nbsp;latest&nbsp;earnings&nbsp;this&nbsp;week.&nbsp;Although&nbsp;it&nbsp;beated&nbsp;expectations,&nbsp;the&nbsp;share&nbsp;price&nbsp;dropped&nbsp;after&nbsp;the&nbsp;results.<img referrerpolicy=\"no-referrer\" src=\"https://community-static.tradeup.com/news/ae4822021d339d24d8328b4919a46a53\" tg-width=\"-1\" tg-height=\"-1\">Do&nbsp;you&nbsp;think&nbsp;\"buy&nbsp;the&nbsp;rumor,&nbsp;sell&nbsp;the&nbsp;news\"&nbsp;is&nbsp;a&nbsp;good&nbsp;trading&nbsp;strategy?How&nbsp;do&nbsp;you&nbsp;find&nbsp;trading&nbsp;opportunities?Comment&nbsp;on&nbsp;this&nbsp;post&nbsp;and&nbsp;win&nbsp;tiger&nbsp;coins~&nbsp;</body></html>","htmlText":"<html><head></head><body>\"Buy the rumor, sell the news\" refers to a trading strategy where a trader buys a security based on speculation about an upcoming news announcement or data, and then sells the security once the news is made public.<img referrerpolicy=\"no-referrer\" src=\"https://community-static.tradeup.com/news/b38aafe31b87ae713876f4d8f7ef65ec\" tg-width=\"-1\" tg-height=\"-1\"><h2>1.&nbsp;Why&nbsp;we&nbsp;don't&nbsp;buy&nbsp;the&nbsp;news?</h2>When a good news event comes out, and the price rises, entering on that good news release can potentially be the worst time to enter the market.That is when everyone else who bought the stock at the lower price may be getting out of the market in order to reap a profit.<h2>2.&nbsp;How to“Buy the Rumor, Sell the News”?</h2>A common example is trading based on the expectation on 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&nbsp;release&nbsp;its results and the stock rises on strong revenue, the traders will sell their shares to turn a profit.<h2>3.&nbsp;This&nbsp;strategy&nbsp;might&nbsp;sometimes be inaccurate&nbsp;</h2>Disadvantages of the strategy include lack of accuracy and potential loss of opportunity on decisions not made quickly enoughNo one can time the market with absolute certainty and buy the rumor, sell the news trading strategy is no different. There can be a number of reasons why this strategy could fail to yield a profit for traders.For example,<blockquote>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.</blockquote>&nbsp;<a target=\"_blank\" href=\"https://ttm.financial/S/BIDU\">$Baidu(BIDU)$ </a>released&nbsp;its&nbsp;latest&nbsp;earnings&nbsp;this&nbsp;week.&nbsp;Although&nbsp;it&nbsp;beated&nbsp;expectations,&nbsp;the&nbsp;share&nbsp;price&nbsp;dropped&nbsp;after&nbsp;the&nbsp;results.<img referrerpolicy=\"no-referrer\" src=\"https://community-static.tradeup.com/news/ae4822021d339d24d8328b4919a46a53\" tg-width=\"-1\" tg-height=\"-1\">Do&nbsp;you&nbsp;think&nbsp;\"buy&nbsp;the&nbsp;rumor,&nbsp;sell&nbsp;the&nbsp;news\"&nbsp;is&nbsp;a&nbsp;good&nbsp;trading&nbsp;strategy?How&nbsp;do&nbsp;you&nbsp;find&nbsp;trading&nbsp;opportunities?Comment&nbsp;on&nbsp;this&nbsp;post&nbsp;and&nbsp;win&nbsp;tiger&nbsp;coins~&nbsp;</body></html>","text":"\"Buy the rumor, sell the news\" refers to a trading strategy where a trader buys a security based on speculation about an upcoming news announcement or data, and then sells the security once the news is made public. 1. Why we don't buy the news? When a good news event comes out, and the price rises, entering on that good news release can potentially be the worst time to enter the market. That is when everyone else who bought the stock at the lower price may be getting out of the market in order to reap a profit. 2. How to“Buy the Rumor, Sell the News”? A common example is trading based on the expectation on 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 release its results and the stock rises on strong revenue, the traders will sell their shares to turn a profit. 3. This strategy might sometimes be inaccurate Disadvantages of the strategy include lack of accuracy and potential loss of opportunity on decisions not made quickly enough No one can time the market with absolute certainty and buy the rumor, sell the news trading strategy is no different. There can be a number of reasons why this strategy could fail to yield a profit for traders. 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. $Baidu(BIDU)$ released its latest earnings this week. Although it beated expectations, the share price dropped after the results. Do you think \"buy the rumor, sell the news\" is a good trading strategy? How do you find trading opportunities? Comment on this post and win tiger coins~","highlighted":2,"essential":2,"paper":2,"link":"https://ttm.financial/post/9957629328","repostId":0,"isVote":1,"tweetType":1,"commentLimit":10,"symbols":["BIDU","NVDA"],"verified":2,"subType":2,"readableState":1,"subTypeObject":{"tweetId":9957629328,"totalAmount":1000,"balance":0,"end":true,"deadline":1679747226643,"description":"1000 tiger-coins have been distributed to 5 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next week, ladt week of feb, should i buy or sell?","text":"so next week, ladt week of feb, should i buy or sell?","html":"so next week, ladt week of feb, should i buy or sell?","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0},{"id":105885085,"commentId":"105885085","gmtCreate":1677383175971,"gmtModify":1677383179334,"authorId":3581935783281401,"author":{"id":3581935783281401,"idStr":"3581935783281401","authorId":3581935783281401,"name":"Sohtheworld","avatar":"https://static.tigerbbs.com/7ae9caac52596cfa3b1213625636f0ec","vip":1,"crmLevel":1,"crmLevelSwitch":1,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9957513797,"objectIdStr":"9957513797","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"Wow wow hahaahha","text":"Wow wow hahaahha","html":"Wow wow hahaahha","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"valid","coins":0,"score":0},{"id":105885181,"commentId":"105885181","gmtCreate":1677383567290,"gmtModify":1677383570829,"authorId":3586987359612845,"author":{"id":3586987359612845,"idStr":"3586987359612845","authorId":3586987359612845,"name":"yingyingzoe","avatar":"https://static.tigerbbs.com/0334d7b658efcee4f8a876775ab43fd8","vip":1,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9957513797,"objectIdStr":"9957513797","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"K","text":"K","html":"K","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0},{"id":105885177,"commentId":"105885177","gmtCreate":1677383551342,"gmtModify":1677383554858,"authorId":3583882434595540,"author":{"id":3583882434595540,"idStr":"3583882434595540","authorId":3583882434595540,"name":"LISEE","avatar":"https://static.itradeup.com/news/04e6b0d792206cfd74830f2552f37288","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9957513797,"objectIdStr":"9957513797","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"ok","text":"ok","html":"ok","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0},{"id":105885176,"commentId":"105885176","gmtCreate":1677383550897,"gmtModify":1677383554133,"authorId":4090467515927450,"author":{"id":4090467515927450,"idStr":"4090467515927450","authorId":4090467515927450,"name":"MTamil","avatar":"https://static.tigerbbs.com/2ef06cd6a8105d63c14dd970957a91e8","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9957513797,"objectIdStr":"9957513797","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"👌🏻👌🏻👌🏻","text":"👌🏻👌🏻👌🏻","html":"👌🏻👌🏻👌🏻","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0},{"id":105885171,"commentId":"105885171","gmtCreate":1677383483788,"gmtModify":1677383487075,"authorId":4088378716140630,"author":{"id":4088378716140630,"idStr":"4088378716140630","authorId":4088378716140630,"name":"gg123gg","avatar":"https://community-static.tradeup.com/news/5a0f75a6bc386ca911f80340ed0a49f1","vip":1,"crmLevel":2,"crmLevelSwitch":0,"individualDisplayBadges":[]},"repliedAuthorId":0,"objectId":9957513797,"objectIdStr":"9957513797","type":1,"supId":0,"supIdStr":"0","prevId":0,"prevIdStr":"0","content":"nice。ok.","text":"nice。ok.","html":"nice。ok.","likeSize":0,"commentSize":0,"subComments":[],"verified":10,"allocateAmount":0,"commentType":"invalid","coins":0,"score":0}],"isCommentEnd":false,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/9957513797"}