The impact of fake news on stock prices
Fake news has become an integral part of the modern information space. They spread at tremendous speed and can have a serious impact on various areas of life, including the stock market.
Fake news is information that is published to mislead people or create an illusion about something that is not actually true.
They can be in the form of articles, videos, photos or social media posts. Fake news is often created using manipulative techniques and misinformation.
In this article, we will look at the significance of fake news in the modern stock market and its impact on investors and traders.
The impact of fake news on markets, investors and traders
Fake messages can have a strong impact on investors and traders. They can create the illusion of increased activity in the market, which attracts attention and motivates people to make trades.
However, when the news is revealed to be fake, the market may react sharply, causing panic among investors and traders.
This can lead to a massive sale of shares and other financial instruments, which in turn causes a decrease in their value.
At the same time, the source of unreliable news is not necessarily news channels; recently, fakes are increasingly being spread through social networks.
Research shows that a large number of tweets on Twitter aimed at damaging the reputation of a particular company can cause a drop in the price of that company's shares, even if the tweets were created by bots.
And what can we say about tweets from popular accounts, for example, after the account of the rating news agency Associated Press was hacked and the publication of a fake on it about the injury of then President Barack Obama led to a drop in the stock market by 130 billion US dollars.
How to distinguish fake from truth
It is quite difficult to distinguish fake from truth, but it is quite possible. It is important to check the reliability of the source of information, as well as compare it with other independent sources. It is also useful to pay attention to the style of presentation and the presence of specific facts.
If the news sounds too sensational or is not confirmed by other sources, there is a chance that it is unreliable. In addition, it is recommended to contact professionals and experts who can provide an objective assessment of the market situation.
Fake news has a significant impact on the stock market, and distinguishing it from the truth can be quite difficult.
However, with the help of critical thinking, checking sources and consulting with experts, it is possible to minimize risks and make the right decision. In the case when you use such news for short-term scalping , this will not particularly affect the result of the transaction, provided that you close it before a refutation appears.