Noise Trading
a.k.a. Noise traders
Trading on hunches, rumours or random chatter instead of real information or a tested plan.
Noise trading is buying and selling based on stuff that does not really matter: a hot tip from a group chat, a scary headline you did not read past, a gut feeling at 2 a.m. Economists coined the term for traders who act as if they have an edge when they really have static.
Noise traders add liquidity and can push prices away from fair value for a while, which is exactly what more patient traders feed on. If you cannot explain why you are in a trade in one clear sentence, you might be the noise.
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