2026-01-09 10:22:29

The moment the news breaks, the market explodes. But you notice a strange phenomenon — everyone is arguing about whether the news is true or not, but actually, that’s not that important. How the market reacts and how quickly it reacts—that’s where the money is.

The real game in news trading is actually betting on expectations. You're not looking for the logic behind the news, but for the market’s mispricing of the information. The same piece of news can be interpreted as positive by some and negative by others, and funds flow wildly within this gap. While you're still pondering "why," the opportunity has already slipped away 5 minutes ago.

So true experts don’t focus on the news itself, but on the market’s biased interpretation of the news. Finding opportunities before the information is re-priced—that’s the game’s rule.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

13 Likes

Reward
13
8
Repost
Share

Comment

0/400

CodeZeroBasis

· 01-12 08:08

Really, rushing to buy is much more important than trying to guess what's real or fake. I've fallen for this myself. That's why I always react a beat too late; by the time the news is out, I've only just caught up. The real goldmine is in the mispriced gaps; once you see them clearly, it's a quick profit. Experts are all playing psychological warfare, not just reading the news. The "5-minute" rule is a bit exaggerated, but it really is that fast. Sometimes, going against expectations is how you make money; reading the market in reverse is also a skill. I agree, it doesn't matter who gets the news right; what matters is how the market perceives it. Now I understand why I always get caught chasing highs—turns out, you have to guess the market psychology.

View OriginalReply0

PretendingToReadDocs

· 01-12 03:40

Damn, isn't this just about quick comparison and reaction speed being justice... Wait, whether it's true or false doesn't really matter? Then what are we researching for, haha The opportunity was gone 5 minutes ago, I already missed it by the time I saw this article This theory doesn't work for retail investors; institutions react in milliseconds, while we have no response at all

View OriginalReply0

GateUser-addcaaf7

· 01-09 16:39

It's really not about news or pricing; big funds have already taken it all long ago. 5 minutes? Bro, even milliseconds are too late. I've heard this expectation betting game a hundred times, but the key is still having an information advantage. Nice words, but retail investors can never beat the algorithms. Every time I think I've found a gap, but in the end, I'm still cut out.

View OriginalReply0

SnapshotBot

· 01-09 10:50

Damn, isn't this what I do every day? Reading news? So slow. Really, I have deep experience with the gap, it's how I make a living. The reaction speed at the moment the news is released is the key, otherwise it's just a waste. That's right, the truth or falsehood of the news isn't the main point; whoever reacts first makes the money. The opportunity from five minutes ago is gone, this is the cruelty of the market. I've played out the expectation betting strategy so many times; mispricing is the real way to make money. While people are still researching the logic, we've already cashed out and run. Pricing deviation is the real treasure, news is just the fuse.

View OriginalReply0

FromMinerToFarmer

· 01-09 10:47

Bro, I have to say, this set of theories sounds pretty right, but it's really damn hard to implement. The price difference disappears so quickly that if you're a half beat slow, you'll lose big. The truth or falsehood of the news doesn't matter at all; reaction speed is the real life or death line. Five minutes? I think now it's about five seconds, and there's no chance. That's why I'm still farming; I can't compete with those low-latency guys.

View OriginalReply0

GasGasGasBro

· 01-09 10:47

Bro, that's a perfect way to put it. Whether it's true or not doesn't really matter; it all depends on who can run faster. Last time, I was stuck on the question of "why," and by the time I realized it, the market had already moved a wave.

View OriginalReply0

ImpermanentSage

· 01-09 10:44

Damn, isn't this exactly what I do every day... Is the news real? It’s meaningless; watching the market response is the real deal. 5 minutes? Sometimes I’m even slower than 1 minute. Actually, it’s just two words—speed. How long can this gap last? Recently, I feel the market is reacting faster and faster. To put it nicely, it’s all about reaction speed and risk tolerance. Small investors simply can’t play this game. Expectation betting is really about gambling on human nature—simple yet complex. Pricing errors always exist; the key is whether you can get in before the correct price. I feel like everything I say is right, but when it comes to trading, my brain just... stalls. But this way of thinking is indeed clear now; I feel like I can lose less.

View OriginalReply0

ConsensusDissenter

· 01-09 10:41

Truth, market reaction speed is the real alpha; the authenticity of news is just a smokescreen --- Well said, I’m the kind of person stuck pondering the logic, always five minutes late --- Gaps are indeed full of money, the problem is how to quickly detect the market’s collective mistake --- This theory sounds right, but in practice it’s easy to be fooled by fake breakouts. How to distinguish? --- Honestly, most people are still watching the news, smart money is already analyzing the market’s understanding of the news --- So the core is still speed and responsiveness; the information gap is just a matter of a few seconds --- I’m a bit confused about the expectation betting part. Who can precisely judge how the market will interpret it? --- Gaps do exist, but the risk is also there; not all mispricings can be turned around --- Five minutes is really not an exaggeration; I’ve seen faster, with prices settled in 30 seconds --- Buying the dip before the price is set, cutting losses after the price is set—most people keep doing this repeatedly

View OriginalReply0