Rumors At KSE
Rumors also trigger buying and selling at KSE depending of course on the merit of rumors and/or source of rumors. Some rumors may not be harmful or at least not intended that way but some are total misinformation and the worst type are total disinformation.
Both Greed and Fear are fueled by these rumors.
Such rumor based buyings and sellings result in greater volatility… and more volumes
KSE members and agents like greater Volumes as these give them more commissions.
Long Term Investors usually sleep through most of these rumors.
Small investors also make mistakes reacting one way or other in response to some of the rumors. Best thing is to accept our mistakes as learning experience and write these down.
Some Swing Traders look at these situations as opportunities as long as the quantities are manageable and the entry and exit timing is right.
Weak holders with large quantities however loose money in panic selling. Remedy : Always have Manageable Quantities.
This good guidance of managing our investment quantities and writing down both our success and failures comes from my teacher and mentor Ahmed Irfan Shafqat.
Most successful Swing Traders and even Day Traders put buying and selling limits and trade only between the Support and Resistance Levels within this range of Low and High established in the last 90 days to about 120 days for about 80% profitable trades.
Of course there are successful traders who only study chart of only last 3 weeks and others who study the charts of last 52 weeks. It all depends a lot on your Comfort Zone and your personality and ability to make good decisions at the right time.
Good Luck
Taufiq
