Avoid chasing hot tips and rumors from "summary" of Reminiscences of a Stock Operator by Edwin Lefevre
It is a common mistake for many traders to think that they can get ahead by chasing after hot tips and rumors. They believe that by following the latest gossip, they can gain an edge in the market. However, this is a dangerous game to play. In the stock market, rumors can spread like wildfire, causing prices to fluctuate rapidly. Traders who chase after these rumors often find themselves caught up in a whirlwind of emotions and irrational decisions. They buy and sell based on hearsay, without taking the time to analyze the facts. The truth is that hot tips and rumors are often unreliable sources of information. They are usually based on speculation and hearsay, ra...
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