Brainlet here

Brainlet here

Why do investors sell the news instead of buying the news? Wouldn't they lose money if people start buying as a consequence of the news?

buy high sell low

they only buy the news if it's unexpected news. typically you buy the rumor and sell the actual reveal so you can beat the herd

if the actual reveal drives the herd to buy then how the fuck are you winning?

the reveal is only news to the dumb money. the smart money knew about that shit early. that's why they're rich and you're poor to begin with.

/this
the people in the know always load up firsr, you can only hope to ride some of the wave
usually people get too greedy and get dumped on though

When they buy it’ll pump and then correct but by the time it corrects the smart money will have sold

>unironically believes trading platitudes

Stay cucked you filthy brainlet

how long do you wait to sell?

ride the hype and sell before the news

There's this thing called speculation... If you can grasp its meaning, you will understand why the market behaves like this.

because the news is priced in, people buy the rumor of the upcoming news.
example: mid feb on bitcointalk callisto fork was announced for etc, etc went from 25 to 45, now that the fork is imminent, people have been selling since ath, so basically they bought the rumor and sold before the news

wouldn't that only provide the opportunity for the dumb money to buy cheaper tokens?

>tokens
this is a thread regarding investors, not children with their 4 figure binance accounts

Because news are always followed by a dumb money pump that's usually unsustainable. You want to buy in early and sell during the pump before the price goes back down

BUT ITS MY TENDY MONEY

Easy. Let's say an asset trades at $100.
There is a rumor that it may go up. Investor buys at $100, and sets the sell order at $110.
News breaks, normies rush to buy, so they fill in the investor's sell order.
The investor takes his 10% profit and normies are left holding the bags.

Because like 40% of news is below expectations when it is finally released or there are bugs, 46% or so is exactly as planned, and only like 4% of events turn out even BETTER than they should have been. So it's always better to simply sell and buy the next rumor instead.

my point still stands, wouldn't that only provide the opportunity for the dumb money to buy cheaper shares?

cool, so that means you sell shortly after the news to avoid

In game theory you have to plan for the lowest common denominator. In the case of unaligned, mutual investors the assumption is that at least one investor(market maker) will chimp out, try to sell the top and throw his shit at the wall to destroy everyone else's value in a market sell. To protect ourselves from the possibility, we all become the chimp.

When the news is genuinely unrelated to the rumour (see ANS to NEO), everyone freezes up and the prices rise like they would if no one were chimping out.

i understand, thanks

thanks, that cleared it up

Investors buy the news
Day traders sell the news

...

thx