How to deal with bad news, rumors in the stock market?

It can be said that, in the current era, the freedom of information and the freedom to express personal opinions is as easy as buying a cup of coffee, that’s why the information sources become diverse. more multidimensional. Since then, the environment for the development of rumors is no longer word of mouth from one person to another, but coverage through social networking sites leads to rumors spreading faster than ever. The coverage of a rumor can spread across the country within minutes of being spread.

With a highly sensitive industry like securities, information, even if it’s just a rumor, once spread, will create a huge public opinion and strongly influence the market, especially in the current situation. while individual investors, in large numbers and continuing to grow rapidly, are gradually able to take the leading position.

It would not be an exaggeration to say that the securities industry is a good place for rumors when two factors are converging: uncertainty and anxiety. Normally, when the market shows signs of correction and drops in a few consecutive sessions, investors’ psychology becomes a bit worried when rumors appear like mushrooms after the rain.

When panic and fear prevail, reason is abandoned and investors suffer.

Looking back at the market recently, on March 29, when there was official news of the arrest of Mr. Trinh Van Quyet, former chairman of the Board of Directors of FLC Group, only the group of stocks related to Mr. Quyet fell and the market fell. The school still gained positive points in the following days. However, the joy for investors did not last long. In the next two weeks, the market continuously dropped deeply.

Along with that, a series of rumors related to senior leaders of many other corporations were spread on social networks. This makes individual investors, mostly F0 generation, panic and worry. They think that all rumors are true to explain the market’s decline the most.

For long-time investors, exposure to rumors is probably not new, they have their own way of handling it, calmly assessing information. However, for new investors, who have contributed to bringing market liquidity to a record high level in the past 1 year, due to lack of experience and knowledge, panic among investors. This is very likely to happen. When panic and fear take over, reason is abandoned and investors suffer the most.

Living in today’s technological age, access to new information and rumors is very easy. However, when receiving new information, we should also receive it in many ways, objectively combined with synthesis and analysis based on information sources to draw final conclusions for upcoming actions. .

However, if all information must be analyzed like that, it seems that receiving information becomes too burdensome and takes a lot of time. Therefore, being equipped with knowledge and discipline in portfolio management is essential. Instead of panicking and acting according to the crowd, investors need to calmly think to make the most reasonable action.