Gaining control of information

Discussion in 'Trading' started by StarDust9182, Jan 21, 2015.

  1. I have realized that one main reason I study the news and input is for position/portfolio risk management and not particularly for my own interest. I do get curious when I see such stuff as world to end on January 26 or the 28 reasons Canada is doomed forever.- so part of it is my own nature. (The best trader I know personally tells me that he doesn't read news but admitted to buying and reading Barron's weekly. When pushed, he said habit mostly since market efficiency means everything is priced in before you read it. I think he totally misunderstands what market efficiency is and implies for investing/trading. A potential thread story.) One problem is that things change and so portfolios must be adjusted but too much or too little adjustment is a very fine line for a trader - both are bad IMO.

    I only ever bought the national enquirer once. It was the issue that said, FBI arrest UFO aliens - pictures inside! Man those aliens looked guilty and I was very happy that the FBI was doing their job! Most news is now really advocacy IMO - so I adjust against that and my own bias. It is intended to influence you to think x is 100% good and y is 100% bad. Any trader trading on 100% anything is not long to this world I think.

    While I do use broad issues for entries sometimes and overall portfolio management and they will guide sector entries sometimes, there is no real connection to my profits. In fact, for me that was a huge learning to invest better. So perhaps, I need a better method of scanning the titles and deleting them. (A criteria checklist perhaps?). I stopped reading ET for a few months and my trading actually improved .... hmmm. But I really missed some folks. (LOL - and not some others)
     
    #11     Jan 26, 2015