Let us try to understand this popular wisdom by discussing and elaborating by some examples.
The saying that “market discounts everything” is a CORE PRINCIPLE of technical analysis, which is a method of studying the price movements and trends of stocks and indexes. It means that all the information that can affect the market, such as fundamentals, news, expectations, emotions, etc., is already REFLECTED in the CURRENT PRICES.
Therefore, technical analysts only focus on the price and volume data, and not on other factors like the balance sheet or earnings of a company.
One example of how the market discounts everything is the phenomenon of “buy the rumor, sell the news”. This means that when there is a rumor or expectation of a positive event for a company or an industry, such as a merger, a product launch, or a regulatory approval, the market participants will buy the stocks in anticipation of the event, driving the prices up. However, when the event actually happens and becomes public knowledge, the market participants will sell the stocks to lock in their profits, driving the prices down. This shows that the market has already priced in the potential impact of the event before it happens, and reacts to the actual news by reversing the trend.

The saying that “DON’T EVER TAKE REVENGE FROM THE MARKET, BECAUSE MARKET IS SUPREME” is a wise advice for investors and traders who face losses or missed opportunities in the stock market. It means that one should not act IMPULSIVELY OR EMOTIONALLY to try to RECOVER their losses or prove themselves RIGHT, because the market is UNPREDICTABLE and INDIFFERENT to their feelings.
Trying to take revenge on the market can lead to more losses, stress, and FRUSTRATION.
One example of how taking revenge from the market can BACKFIRE is the case of Bill Ackman, a famous hedge fund manager who bet against Herbalife, a nutrition company, in 2012. He accused Herbalife of being a pyramid scheme and spent millions of dollars on a campaign to expose its alleged fraud. However, the market did not agree with him, and Herbalife’s stock price rose instead of falling. Ackman stubbornly refused to ADMIT his mistake and kept increasing his short position, hoping to eventually profit from Herbalife’s downfall. He ended up losing over $1 billion and damaging his reputation in the process. This shows that taking revenge from the market can be a costly and FUTILE endeavour. A popular way of summarizing the above point is the saying that do not marry a stock rather go for a LIVE IN kind of relationship with the stock you invest.