What extent should we believe in the market rumors?

<p id="isPasted">Two of my best trades has been AGAINTS the position propagated by known ‘analyst’ trolls.</p><p>It makes sense to analyze the rumors, but that with a grain of salt. If you see them pushing people to make trade against reason and logic, just do the opposite if the objective signals say so.</p>

<p id="isPasted">For Professional traders, many market retail participants believe rumors are a great opportunity to “Buy and dump”! to make quick money!!!!</p><p>But, one has to be very fast in making decisions and cut your small loss without any hesitation!</p><p>Remember, professional traders, use “Trading Edge (specific trading strategy)” and, more importantly, will have superior money management skills/Risk-to-Reward (without which no one will ever survive as a trader!)</p><p>Generally, non-rumors stocks are less risky at the same time, Less profitable!</p><p>Professional traders will have many small losses (get out at a small loss), but if a stock gets going in the same direction as expected makes a ton of money. People become super-rich by winning a few trades with huge profits!</p><p>So, the number of trades don’t count but the quality of winning counts!</p><p>I hope this answer is not misleading, and a professional trader waits for such trade in a year, other than trade every opportunity.</p><p>Warning!!!</p><p>Stock market beginners should stay out of trading rumors stock because a single trade can take all or considerable invested capital!!!</p>

<p id="isPasted">Rumors aka misinformation in the stock market is often the cause of capital, investing in extremely high risk stocks, and buying high instead of buying low and selling high.</p><p>Avoiding rumors and avoiding misinformation requires that retail investors and traders seek out reliable sources aka original source data and information.</p><p>Social Media such as Facebook and Reddit are chronically crammed with misinformation and stock market propaganda, manipulation, and influencers intending to create emotional reactions from readers. Not participating in such misinformation spreading and reading is one way to avoid rumors and loss of capital or loss of profits.</p><p>The popular internet Retail Financial websites is another nest of false information, manipulated information, and promotions that deceive the investor who is using these websites as a means of finding stocks to buy.</p><p>Chatrooms and social gatherings of retail traders and retail investors is another great way to get misinformation, false information and then make decisions based on an emotional reaction to such information.</p>

<p id="isPasted">Human speculative nature.</p><p>Everyone wants to get in front of the queue, be the early bird and get the juicy worm! :)</p><p>So, when rumors start floating, everyone jumps in pell-mell with a don’t care attitude and hardly any research.</p><p>Shoot first and research later is the norm.</p><p>This goes on till the day of news comes around. By this time, the stock has been overbought and early buyers - strong hands - want to exit while the going is still good. The best day for this is the one when the rumor is confirmed and the weak hands - people who don’t understand how markets work - jump in with large amounts and an overconfident attitude.</p><p>The early buyers sell in a hurry and even go short, knowing fully well the effect of sudden, large selling (which could suddenly plunge the newbies into temporary book losses and create a lot of confusion in their minds - because they have no clue what is suddenly happening to their “sure shot” trade.</p><p>This is usually done every quarter and even more so during annual results announcement and has a 1–2 month, gradual ramp up.</p>

<p>Well personally I don't believe in any one's suggestion, and since the starting of my journey in the stock market I have never used any suggestions/recommendation to put my money on any stock, I always focused on learning and finding Stock on my own, and still learning every day. Yes, you can use these recommendations for reference and then later do your own analysis on that stock and then take the final call. But even if you want to just work on recommendations then you have to pay for it, there are many firms out there who will provide you with best recommendations for the stocks based on your time horizon, financials etc. But the thing is you will have to pay for it, because nothing is free in this world everything have some cost attached to it.</p>