“If you don’t read the newspaper you are uninformed, if you do read the newspaper you are misinformed.” -Mark Twain
These days it truly is a chaotic environment for the personal investor. First, we are told the world is crashing in October ‘08 as the markets fall over 42%, then we go on a huge 40% rally as we are told that indicators are pointing to the economy rebounding. How can anyone invest in the right direction with all this volatility?
Well, for starters, try turning off the television that we all know you are watching. I’m guilty too, don’t worry. I used to watch CNBC (I never got Fox Business) for information regarding the markets.
Now, if you are getting ready to argue with me, wait. Instead, try and think of one time where you made money from watching CNBC. I can guarantee you that you should be able to count the times on neither of your hands.
If you want to be a profitable trader, you have to think on your own. You cannot let the Media provide you with trading commentary otherwise you will surely lose money.
Think about it. What is the main goal of CNBC when it comes to you? Do they go to work every day and think “hmm..how can we make our viewers the most money today?” No! Their purpose and main goal is to keep eyeballs watching and feed you sponsored stories.
I’m not arguing that when they announce earnings data that they have an alternate agenda, but I am arguing that the commentary they provide each and every day on the markets and individual stocks is meant to put you in losing trades so that the inside, professional traders can profit from your weak positions.
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