Hi all,
question from a beginner here - PFGC released results with drove the price down to buying area with quite a big sell-off. Shall one still fill this or such news moves shed diff light?
sorry if i put this topic in wrong section.
cheers
PFGC
-
Yodean
- Jeidi
- Posts: 2685
- Joined: Wed Sep 30, 2020 9:02 pm
Re: PFGC
I can only speak for myself, naturally, but my 1st lot in PFGC has been deployed.
Trading based on short-term news items, etc., generally doesn't work very well. If anything, you want to "buy the rumour, sell the news." In PFGC's case, you apply this idea in reverse (i.e. it sold off on release of negative news, so you want to buy here). Basically, you kind of want to do the opposite of what the news seems to want the herd to do, all other things being equal.
But hey, simple maxims don't always work.
Trading based on short-term news items, etc., generally doesn't work very well. If anything, you want to "buy the rumour, sell the news." In PFGC's case, you apply this idea in reverse (i.e. it sold off on release of negative news, so you want to buy here). Basically, you kind of want to do the opposite of what the news seems to want the herd to do, all other things being equal.
But hey, simple maxims don't always work.
Buy Fear, Sell Euphoria. The Neonatal Calf undergoes an agonizing birthing, while the Bear falls into hibernation.