March 16 (Thu): Nikkei 225 (Lecture: Should you watch the news?)

Good morning☀

Are you all watching the news?

?Course: The Impact of Fundamentals on Stock Prices

https://www.gogojungle.co.jp/finance/navi/articles/52013

In the above course, I talked about my belief that news does not create charts.

So todayShould you look at the news after the chart moves?

I would like to write about my thoughts.

Yesterday, the Nikkei 225 dropped sharply.

When you look at the news, it says plausible things, right?

・The collapse of a US〇〇 bank ～

・The impact of ～

There are also places that continue like this in the news.

“The selling will continue to be dominant.”

What will investors do after hearing that?

I think there are some who will start selling.

My question is…

① Is the reason the stock price fell really as the news says?

It says plausible things, but … the basis isn’t clear.

I think they are simply picking news favorable to the direction the price moved and reporting it.

Confirmation bias indeed.

Then…

② Can you profit by buying and selling according to the news?

In the news“Selling leads first～”When you hear that, I think it’s hard to buy.

So if all the investors who saw the news sold, would you make a profit?

There is a saying in investing…

（The following is for members only.）