--- title: "In a market flooded with rumors, the 5 most common mistakes investors make" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39715088.md" description: "Last night, in his national address, Donald Trump once again issued a strong signal to Iran, further dampening market expectations of a swift end to the war in the short term. As expected, crude oil surged in the night session, tech stocks plummeted, and market sentiment quickly plummeted from the excitement of "the war might cool down soon" back to freezing point. Many thought the market was likely to continue selling off during the session. Unexpectedly, after the market opened, both the broader market and NVIDIA were steadily pulled up, ultimately staging a rather dramatic recovery: the S&P 500 closed up 0.11%, the Nasdaq closed up 0.18%, and NVIDIA closed back above 177.39..." datetime: "2026-04-03T02:39:42.000Z" locales: - [en](https://longbridge.com/en/topics/39715088.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39715088.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39715088.md) author: "[爱妻的交易员](https://longbridge.com/en/profiles/17289850.md)" --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/topics/39715088.md) | [繁體中文](https://longbridge.com/zh-HK/topics/39715088.md) # In a market flooded with rumors, the 5 most common mistakes investors make Yesterday, in a national address, Trump once again sent a tough signal to Iran, further dampening market expectations for a swift end to the war in the short term. As expected, night market crude oil prices surged, while tech stocks plummeted, and market sentiment quickly plummeted from the excitement of "the war might cool down soon" back to freezing point. Many people thought that the market would likely continue to fall during the session. But unexpectedly, after the market opened, the broader market and NVIDIA were steadily pulled up, ultimately staging a rather dramatic recovery: the S&P 500 closed up 0.11%, the Nasdaq closed up 0.18%, and NVIDIA closed back above 177.39. One of the key catalysts for the intraday sentiment recovery was market rumors that Iran and Oman were drafting a plan for regulating passage through the Strait of Hormuz, while the UK was also leading discussions among multiple countries to resume navigation. Although such news doesn't mean the problem is solved, it at least allowed the market to start trading the possibility that "the situation might not spiral out of control." Today, let's talk about: In a market like this where news is flying everywhere, with too much information, emotions moving too fast, and price reactions being too severe, the 5 most common mistakes that easily confuse ordinary investors. 1) Treating "News" as a "Definitive Conclusion" Many people, upon seeing news, immediately imagine a complete script: • Trump's tough talk = The war will definitely be prolonged • Oil price surge = US stocks will definitely continue to plummet • Intraday rebound = The risk is already over But the market has never been that linear. News is just a variable, not the answer. Often, prices trade not the news itself, but the expectation gap. What you should really ask is not "Is this news bullish or bearish?" but: • Is this new information? • Has the market already priced it in? • Does it change short-term sentiment or medium-term logic? 2) Letting Emotions Follow Intraday Fluctuations, Changing Strategy Three Times a Day In this kind of market, the most dangerous thing isn't being wrong, but having your rhythm completely thrown off: Wanting to buy the dip in the morning, wanting to cut losses at noon, wanting to chase the rally in the evening. Panicking at a drop, regretting at a rise, eventually turning yourself into the market's ATM. Short-term volatility is inherently an emotion amplifier. If you don't have preset discipline, you easily become: • Doubting life when it falls • Doubting yourself when it rises • Starting to act recklessly when it's range-bound So the most important thing has never been "being right every time," but not letting your operational rhythm be dictated by the market's emotional rhythm. 3) Mistaking "High Volatility" for "Trend Reversal" This is the most common misjudgment in high-volatility markets. For example: • One day down = thinking the bull market is over • One day up = thinking new highs are coming soon • One big green candle = thinking all the bad news is out • One big red candle = thinking it's a systemic crash But in high-volatility phases, many moves are actually just: • Short covering • Oversold bounce • Pre-holiday position adjustments • Short-term rebalancing between risk assets and bonds In other words, high volatility doesn't equal clear direction. So you need to distinguish between: • Choppy: Fast moves up and down, but no clear direction established • Breakout to the upside: Key highs are effectively broken and held • Breakdown: Key support is effectively broken and can't be reclaimed on a bounce Don't mistake "scary volatility" for "a clear trend." 4) Mismatch Between Position Size and Understanding This point is particularly crucial. Many people say "I'm looking at 2-3 years," but with a heavy position, they can't sleep after a 5% drop; Others who originally just wanted to do a short-term swing trade end up with a position size suitable for a long-term heavy investment. Ultimately, the problem often isn't being wrong, but: Your position size is greater than your risk tolerance; your trading frequency is greater than your depth of understanding. In this kind of market, two imbalances are most likely to occur: • Position too heavy, preventing you from looking at the market objectively • Cash too low, leaving you just watching even when you think something is cheap So the essence of position sizing is never just "how much to make," but more importantly: Can it keep you sane during volatility? 5) Always Wanting to Prove You're Right, Instead of Surviving First This might be the most treacherous human weakness. Once you have a view, subsequent actions easily become distorted: • I must prove the war won't spiral out of control • I must prove this is the bottom • I must prove the market is wrong and I'm right Then adding more as it falls, chasing as it rises. All actions are not for the odds, but to prove yourself. But the most unnecessary thing in investing is fighting the market. Charlie Munger said: **In the long run, what really makes the difference is often not how smart you are, but whether you can consistently avoid doing stupid things.** The same applies to investing. Often, avoiding one big mistake is more important than making one "brilliant call." The market doesn't need to acknowledge you in the short term, and you don't need immediate validation. The truly mature approach should be: • Right? Follow the plan and profit. • Wrong? Follow the discipline and manage it. • Unclear? Move less. First, protect yourself, then wait for the market to give you the answer. So, **in a market where news is flying everywhere, what matters is never who gets the news faster, but who is less likely to be swayed by it.** **What really makes the difference is also not being right or wrong once or twice, but whether you can, amidst high volatility, still maintain your own rhythm, position size, and discipline.** ### Related Stocks - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [S&P 500 (.SPX.US)](https://longbridge.com/en/quote/.SPX.US.md) - [Vanguard S&P 500 Growth ETF (VOOG.US)](https://longbridge.com/en/quote/VOOG.US.md) - [Invesco QQQ Trust (QQQ.US)](https://longbridge.com/en/quote/QQQ.US.md) - [SPDR® S&P 500® ETF (SPY.US)](https://longbridge.com/en/quote/SPY.US.md) - [NASDAQ Composite Index (.IXIC.US)](https://longbridge.com/en/quote/.IXIC.US.md) - [ProShares UltraPro Short QQQ (SQQQ.US)](https://longbridge.com/en/quote/SQQQ.US.md) - [ProShares Short QQQ (PSQ.US)](https://longbridge.com/en/quote/PSQ.US.md) - [Direxion NASDAQ-100® Equal Wtd ETF (QQQE.US)](https://longbridge.com/en/quote/QQQE.US.md) - [ProShares UltraPro QQQ (TQQQ.US)](https://longbridge.com/en/quote/TQQQ.US.md) - [GraniteShares 2x Long NVDA Daily ETF (NVDL.US)](https://longbridge.com/en/quote/NVDL.US.md) - [XL2CSOPNVDA (07788.HK)](https://longbridge.com/en/quote/07788.HK.md) - [XI2CSOPNVDA (07388.HK)](https://longbridge.com/en/quote/07388.HK.md) - [YieldMax NVDA Option Income Strategy ETF (NVDY.US)](https://longbridge.com/en/quote/NVDY.US.md) - [Direxion Daily NVDA Bear 1X ETF (NVDD.US)](https://longbridge.com/en/quote/NVDD.US.md) - [T-REX 2X Long NVIDIA Daily Target ETF (NVDX.US)](https://longbridge.com/en/quote/NVDX.US.md) - [T-REX 2X Inverse NVIDIA Daily Target ETF (NVDQ.US)](https://longbridge.com/en/quote/NVDQ.US.md)