Built by Traders, for Traders

How to Buy the Rumor and Sell the News

Share on facebook
Share on twitter
Share on linkedin

Hey, everyone. I hope you enjoy this content. Don’t forget to click that subscribe button and hit that bell to be notified of upcoming videos.

Joshua, what does it mean to buy the rumor and sell the news?

All right. So buying the rumor, selling the news, everybody says it, but I don’t think people really thoroughly understand it. It’s actually a pretty simple concept. What I want you to do is, I want you to think of you when you’re a little kid and there is a birthday party. When you’re a little kid, you get so excited and you get the birthday invitation. It’s like two weeks away. You’re like, “I can’t wait for this party.” You go to school, you see your friend. “Your party’s going to be so cool. Then you go with your parents and you buy the gift and your parents are like, “Hey, you can’t tell your friend what you got him.” But you’re so excited to give them the gift and you’ve built up all of this stuff. Right? And then once you get to the party, it’s this big celebration. You’re giving the gift, eating the cake, eating the ice cream, you’re running around playing tag. Then the party’s over. Then you get your goodie bag and you go home and it’s like, “Well, that was fun.”

So that’s how all this stuff works. Imagine that there is a stock, there’s a company. And this company, there’s a rumor out there that says, “Hey, within three months from now this company is supposed to release a new acquisition. They’re actually buying a company that no one knows about, that they’re not going to name until three months from now, and they’re going to combine resources and this other company has access to a patent technology that’s going to three times, four times, five times the initial company now. So if you buy that stock right now, you could five times your money if this actually happens.”

Now, you don’t know if it’s going to happen or not, but it could. And so what happens is that rumor will drive a lot of interest in that room, just like the birthday party. Like, “I can’t wait for this party.” You can’t wait for that date, and what happens is people are buying. People are buying. FOMO. Fear of missing out. Nobody wants to miss out on this new acquisition. Then what happens is the announcement is made.

Well, whether they acquire the new company, whether it works out or not, basically whatever the anticipated move that was going to take place, normally majority of that already happens. So what happens is what people end up doing is, they will buy the rumor. They’ll buy the rumor of, “Hey, this company on this date three months from now could acquire another company to release a patent pending technology or patent technology that could five times their company. So get in now. And then the company will get 300% within a short period of time.” Announcement comes out, everyone who tripled their money, they exit. Boom, boom, boom, boom. And that brings the market down. Or the stock kind of fizzles out or whatever. That’s because, party’s over.

So buy the rumor, sell the news. It means if you hear the rumor, traditionally, you want to get in on the excitement and then you want to get out right before the announcement actually happens because realistically, who cares if it’s going to work or not? Because, you three times your money, take your money and run. But that’s kind of the thought process behind it. Buy the rumor, sell the news. Of course, if you truly believe in the company, you’re going to hold onto your stock, much, much longer, take advantage of tax benefits and so on and so forth.

But, anyways, hopefully that makes a little bit of sense. Just like a birthday party. There’s a lot of excitement leading up to the party, but once the party is over, it is over. Buy the rumor, sell the news. Joshua Martinez.

Hey guys, if you enjoyed this video and you want to stay up to date to my weekly content, go ahead and subscribe to this channel, www.tradersagency.com. If you want to be notified every time I post a video, go ahead and click on that bell down below. If you want even more information, don’t forget to visit my website at www.tradersagency.com and subscribe to my free weekly newsletter, where I send out my research on market opportunities. Thank you for the opportunity. Have a wonderful day.

var _avp = _avp || []; if (!document.cookie || document.cookie.indexOf('AVPDCAP=') == -1) { _avp.push({ tagid: 'JGbMB750y4epxR1Z8l7C', alias: '/', type: 'dynamic', zid: 30, pid: 0, secure: true }); }

4 Comments

  1. Andile
    September 19, 2021 @ 1:00 pm

    Hi Joshua,
    Firstly, thank you for having your information made available. My name is Zizi and I am based in South Africa. I started trading Nasdaq effectively at the beginning of the pandemic lockdown, around May of 2020.
    I have been scammed many times and mostly “knowingly” but treated investments as risk needed to make it in trading. This varied from buying signals, lessons and live trading sessions, all in order to understand what happens in the markets, particularly the Nasdaq.
    Your videos have opened my eyes in a way like I never saw. I wish I had known about them early enough. The money that I threw away in trades and these investments could have put me where I’m heading with your information.
    I am waiting to clear a few things while training on demos, to make a living out of this.
    I just thought it important to thank you for your generousity and tell you I am just one person in a very remote location that appreciates what you do. I wish you long life.
    Just something for thought, I’m over 50 years of age and believe that I will retire before 60 because of this.

    Stay blessed.

    Kind regards,
    Zizi

    Reply

    • Traders Agency Analyst Anthony Speciale
      September 20, 2021 @ 5:27 pm

      Hi Zizi. Thanks so much for your kind words! Our #1 priority is our students satisfaction, we look forward to working with you. Happy Trading!

      Reply

  2. David Marquis
    September 21, 2021 @ 3:52 am

    Josh and his team are extremely reliable and honest and I was called twice at home by Richard what great service! I have stocks and crypto currency and large bank account Traders agency is always there for me whenever I email or call. The other investment vehicles just ignore you and are unavailable. Richard gave an over 3 hour course when on vacation. They are always sending updates and relevant classes to help me along and answer my questions. Kudos to all.

    Reply

    • Traders Agency Analyst Anthony Speciale
      September 21, 2021 @ 8:32 pm

      Hi David. Thank you so much for you kind words! We look forward to working with you, Happy Trading!

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

TRADING TO THE NEXT LEVEL

Your market analysis is about to get a whole lot simpler.

Subscribe to Beyond the Trade – a free newsletter including Josh’s Weekly Trade Ideas and more!

Upcoming Webinars