In the trading market, there are two kinds of people who trade based on news:
One type is speculators;
One type is investors;
Just like the recent market volatility, the source of the huge fluctuations is the Federal Reserve’s information and Trump’s speeches.
Therefore, many people often stay up late waiting for the Federal Reserve’s information to be released or waiting for key figures to speak.
Is it hard? Is it tiring? Do you feel sleepy?
It's not easy~
In fact, when you spend a long time in the financial market, you will not think this way anymore, because you will transition from a short-term speculator to a long-term investor.
The difference between speculators and investors:
Speculators only think about making a quick profit in the short term; (eager to get rich)
Investors profit through holding; (befriending time)
Speculators often pay attention to how each piece of information affects current price fluctuations and then take action; they might make money or they might fail.
Investors also pay attention to each piece of information but filter out information that only has short-term effects; what impacts them are the pieces of information that will have long-term effects (including but not limited to policy impacts, changes in the financial system, and geopolitical changes). They discern whether the impacts over the next six months, a year, or several years will be positive or negative for the market, and then they take action. Through the accumulation of time, those impacts gradually become apparent, and investors will profit.
The joke 'The market rises and falls entirely based on Trump’s words' is more accurately 'The short-term rises and falls entirely based on Trump’s words.'
So, sleep when you need to; learn to befriend time.
Of course, speculators do not affect the dual role, but they are not news speculators; they are traders.