"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
How to deal with market noise?
In the financial markets, noise can include price fluctuations that distorts the overall trend. Numerous news and information make investors find it challenging to do rights things. With a trading plan, investors can determine how to move by following the plan. ---- [TOPIC] How to deal with market noise? Share your skills and experiences with all tigers!
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