News based stock picking

In multiple stock subs, I noticed a rising pattern especially among new market entrants, whether they are an investor or a trader, but more so for investors - the news based stock picking habit.

They see some news on tv or youtube or a viral reddit post or even a message based rumour and they will go and immediately take positions. Once they do, they start biting their teeth because it was an emotional impulse.

Don’t! Don’t do it my young naive newbie!

Why you ask ? Because of these points which I learnt myself the hard way years ago -

- Incomplete and misleading information in news reports

- Market already knows the news, and investors who rush in after a news story breaks may end up buying at inflated prices

- Emotional investing leads to impulsive decisions that are not based on solid research

- Those who spread these are waiting for a buying spree after which they exit positions

Please do thorough research else you will end coming here and asking “why is it going down”, “please help”, “stuck with this” , “yeh laal rang kyu” ……

Saral bhasha mein - Stockf picking agar itna asaan hota to sab sardar hote market mein.

It takes time to do detailed analysis, time spent with financial statements and understanding the company.

Peace ✌️