How to understand "buy news and sell facts"? How to deal with similar data planes?

In fact, this question is about how to deal with fundamental news. I personally think that we should try our best to avoid fundamental news to make orders, because our news is too late, and the market has already started to move after we know it. Besides, there are several bad points about fundamental news: (1) Fundamental analysis It is impossible to quantify the time interval during which basic data or information has an impact on market prices. (2) There is great ambiguity and unpredictability in fundamental analysis. (3) Not all price fluctuations are caused by fundamental factors.

Sometimes, the price rises steadily due to the continuous positive influence of fundamental factors, but when the price reaches a certain price, the closing operation of the long orders entered in the early stage is enough to cause a short-term sharp correction in the market price trend. At this time, although the overall upward pattern of the market remains intact, if some investors enter the market to do long near the peak before the price has a sharp correction, then in the margin market where investors do not have enough capital reserves, it is very likely that there will be a liquidation. Phenomenon. History has proved that liquidation is extremely painful.

There is a word called price in!

Whether it is the stock market or the foreign exchange market, when the price is at a high or low level, funds need to change hands to obtain chips from the low position or throw away chips from the high position. The news is the catalyst to stimulate the change of hands, so we often say a sentence: If it is good, take the money and run quickly; if the low position is bad, take the money and rush in.

Everything that is good is bad, and everything that is bad is good.

If the market is very hot, when the good news has reached your ears, it proves that the news has spread far, and the price has already been pushed up by people who heard the news earlier than you, and you have heard the good news. At that time, I felt that rushing in would make a profit, which happened to be convenient for those who raised the stock price in the early stage to ship.

The longer an important data/event is expected by the market in advance, the more likely it is to buy news and sell facts. On the contrary, it is the kind of sudden good/bad data or events, and the market will act according to the quality of the data before the market has time to react.

As for the best way to deal with it, it is actually better to wait and see. If you have to find a way to deal with it, then just place a two-way order. Because any market behavior of buying news and selling facts is often accompanied by unilateral market behavior, at least in most cases. You don't need to consider the direction of the two-way pending order, and the worries of buying news and selling facts are relieved. The only thing you need to consider is whether the market volatility is enough to support two-way pending orders, and whether you will be swept away by stop losses on both sides.