Beware of 'Short and Distort' and 'Doomscrolling?
The stock market is bearish due to FED continuous rate hike and recession fear. This has led to an increase in negative opinions on a particular company or sector such banking sector in the most recent example. Some of these news may be negative bias and even false.
As investors we need to have a balanced view and to filter out negative bias and falsely claimed news. Most importantly don't fall into doomscrolling trap - a form of emotional trading.
If a blogger or a platform kept posting negative review about a stock, most likely the author short sell the stock or he is a victim of doomscrolling.
Quote:
Short-and-distort is an illegal market manipulation scheme that involves shorting a stock and then spreading false information in an attempt to drive down its price.
Short-and-distort is an illegal market manipulation scheme that involves shorting a stock and then spreading false information in an attempt to drive down its price.
Negative opinions about a stock are a constitutionally protected speech, as distinct from false claims spread for profit as in a short-and-distort manipulation
To protect against such schemes, research the stocks you own to more easily discern false claims, and try not to overreact to dramatic price moves in response to unverified information.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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