In the world of trading and investing, we are bombarded with a vast amount of information and news on a daily basis. It has become an integral part of our work to stay informed about the current financial and economic situation. However, the question arises: How important is all this news when it comes to making trading decisions? Let's delve into it.
With modern information technologies, there is a potential to manipulate and influence individuals consuming information through social engineering, emotional manipulation, and even neurolinguistic programming. "Significant" news is often presented using various techniques and methods to impact our consciousness. This is because important market events generate substantial liquidity, which is the driving force behind price movements.
Have you ever experienced FOMO (Fear of Missing Out)? Have you ever wondered what lies behind the ambiguous acronym FUD (Fear, Uncertainty, and Doubt)?
It's important to recognize that these concepts primarily carry emotional weight rather than pure informational value. Resonating events create a foundation for market activity, particularly among the majority of participants driven by greed or fear. The crowd, in its pursuit of market success, falls prey to informational provocations, believing that being aware of the latest developments puts them ahead of others and increases their chances of striking it rich.
However, you are well aware of how things actually unfold in reality, even without us explaining it further.
It is essential to formulate a well-defined trading and investment plan that accounts for unforeseen circumstances and incorporates the potential volatility caused by unpredictable black swan events of varying magnitudes. Nevertheless, basing your plan solely on the news is not advisable.
Remember to be cautious when others exhibit greed, as it often indicates a market peak, and be bold when others are cautious, as it presents opportunities for potential gains.
In summary, while staying informed is important, it is crucial not to solely rely on news-driven decision-making. Emotions and manipulative tactics are intertwined with market news, and understanding this can help us approach trading and investing with a more balanced and informed mindset.
#fuds. #crypto