S.E.: beware of Deep FAKE news
S.E.: beware of Deep FAKE news
I mentioned this intriguing stock CELESTICA a few days ago. On “Deep Fake News Monday” with headlines like “The free, clean Chinese AI running on an 8086 will bankrupt the United States” the stock took a significant hit… only to quickly recover almost all its losses.
Spreading such news today is incredibly easy, especially because the job of a journalist has become “push out news as quickly as possible; the more fake and click-worthy it is, the better.”
In these situations, there are those who make massive profits very quickly by short selling and/or buying the stock when it drops into that tight valley. All it takes is substantial liquid capital and a willingness to take on what is… a surprisingly minimal risk compared to the ease and magnitude of the profit.
P.S.: sadly this time I had set a “wrong” StopLoss around 90 USD. I had bought the stock slightly over 50 USD so it seemed reasonable. I have not been very lucky. For a better reaction (immediate and automated, then see what happens) it’s better to set a more aggressive StopLoss (for example between 100–110 in this case) to:
- consolidate your earnings even it you are having fun somewhere someway
- be alerted of the rapid price decrease, and be ready to buy it again, for example if the company’s fundamentals are still good, at a lower price
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