Buy the Rumor, Sell the Fact is an old trading rule, but highly misunderstood – the rules dictates that you don’t have to sell the fact and not buy the fact. One obvious point implied in the rule is that the rumor should be bullish: if it is bullish only then you stand a better chance to win – to earn more then reasonable levels. One thing should also be kept in view – any rumor may also have bearish connotations. Following the rule Buy the Rumor, Sell the Fact looks simple, but it requires some practice and agility to monitor and analyze the information coming out of market.
- Trading Rules - a book by William F. Eng dealing with 50 Stock Market Trading Rules