Post by Dave on Jul 3, 2008 22:12:10 GMT
Hi everyone,
This is about as off-topic as you can get but as i was in the middle of it this afternoon i.postimg.cc/9fYxy370/smilie-big-grin.gif I thought I'd share with anyone who's interested a perfect example of what the money-men call:
"Buy on the rumour, sell on the news!"
What they mean is that when some good (and big) news is rumoured or expected, something that will affect the markets, the big boys jump in early to buy - a long time before the rumours are ever confirmed. Then, when the news is confirmed, they immediately sell it again to take their nice fat profit - catching out any unwary small investors in the process.
The European Central Bank has been expected for a week or two now to raise interest rates today, making the Euro more attractive to International investors and raising its value. Its value against the US dollar and Sterling has steadily climbed for the last few days as shown by the screenshot below (the first threequarters of it!):
Buy on the rumour, sell on the news!
Confirmation of the expected increase in interest rates came at 12:40 GMT. In about one hour, all the gains of the last few days was lost and it ended up over 200 points off its peak against the dollar. OK, there was some important economic news from the US at around the same time but the same applied to that! So if you want to make money, remember to: buy on the rumour, sell on the news! Well most of the time. i.postimg.cc/9fYxy370/smilie-big-grin.gif
Cheers, Dave
This is about as off-topic as you can get but as i was in the middle of it this afternoon i.postimg.cc/9fYxy370/smilie-big-grin.gif I thought I'd share with anyone who's interested a perfect example of what the money-men call:
"Buy on the rumour, sell on the news!"
What they mean is that when some good (and big) news is rumoured or expected, something that will affect the markets, the big boys jump in early to buy - a long time before the rumours are ever confirmed. Then, when the news is confirmed, they immediately sell it again to take their nice fat profit - catching out any unwary small investors in the process.
The European Central Bank has been expected for a week or two now to raise interest rates today, making the Euro more attractive to International investors and raising its value. Its value against the US dollar and Sterling has steadily climbed for the last few days as shown by the screenshot below (the first threequarters of it!):
Buy on the rumour, sell on the news!
Confirmation of the expected increase in interest rates came at 12:40 GMT. In about one hour, all the gains of the last few days was lost and it ended up over 200 points off its peak against the dollar. OK, there was some important economic news from the US at around the same time but the same applied to that! So if you want to make money, remember to: buy on the rumour, sell on the news! Well most of the time. i.postimg.cc/9fYxy370/smilie-big-grin.gif
Cheers, Dave