Here’s a tricky area. Rumour. You want to get the value ahead of the curve but it’s often a question of whether the data’s good enough to act upon.

35) By their very nature rumours are not a sound source of investment information. Being a sad individual I like to note down rumours, the current market prices and source of the said tale. Clearly I miss out on some opportunities but having listed the rumour and checked the results / market movements over the next 1 to 90 days my (possibly questionable) analysis shows that rumours are a poor source of data…no surprise there. However the rumours often come up with big swings as many investors try to get on the same tip. That creates volatility which can be handy for spread bettors.

36) Note that the market makers will often take the newspapers and investor magazines tips into account. They will move their prices up / down before you get there. Any value in good tips is often gone

37) Try to verify all such information. If it’s accurate you can always join the trend a little later. It’s difficult to predict the start of trend therefore if you think there’s some truth then it’s worth a look trying research the company / market in question.

Have a good weekend

DB

Clean Financial - Spread Betting