So first, I try to not let the news affect my trading at all. I used to actually start the trading day by getting up early to read the highlights. Now I just sleep in a bit more and go straight to the charts. But I have to really scratch my head here. These two screen captures are taken minutes ago. The areas outlined in red are almost completely contradictory. They aren't exactly saying the same thing, but it seems like one source makes Apple sound good, the other source makes it sound bad. Likewise, with Yahoo, one sounds positive, and one sound negative. It seems they both agree about Microsoft, but how on earth can these headlines be so misleading?? I realize its a matter of results versus expectations and all that jazz, but this is just nuts.
I didn't learn how to trade until I stopped watching the news. I'm to the point where I don't even keep up with it. I might read the WSJ or some other news site once a week. What they tell me is gonna show up in the prices first, so it makes no sense IMO to track that stuff.
Fully agreed. I even like how at the end of the day, some articles might say the market is down because of *****, and when I look, I can clearly see some resistance level that couldn't be breached, and yet, the journalists make it seem like they know exactly why the market is down.
LOL. Exactly. That's the point of the financial media, though. People wanna be told every single day why the market rose or fell and they have to conjure up reasons.
KP When you get to the point of being able to (accurately) predict the news - based on the day's mkt action You'll understand how ignoring the news is beneficial Just know when important announcements/ earnings / FOMC due out ====================== One final thought; News reports on what has happened (and tries to assign a reason) Traders concern their self on what is happening / what has yet to happen RN
I see three kinds of news. The first kind is noise. The reporter conjures up some reason for what happened. Ignore this. The second kind is real. This is new information not yet priced in. If you are fast and understand what it means you can profit from it. The third kind is disinformation. Someone already in needs liquidity for an exit. Or someone needing to get in shakes the tree. Fade this. With experience you will be able to tell them appart.
I'm completely with you here RN. I just find it so odd that the same piece of news can be spun in so many different ways. I haven't even read the articles, but you would think the headlines would be somewhat indicative of the sentiment of the article. I know that a good earnings report doesn't mean the stock will rise (investors might have wanted even more profits), but given these two examples, it makes me wonder if the journalists got the same copy of the financial statements.
A beer taste test survey concluded that 2/3 of the respondents thought Miller High Life tasted as good or better than Coors. Coors included the the results in a marketing campaign stating 2/3 of respondents liked the taste of Coors over Miller. News headlines, like survey questions are written a certain way for a reason.
Most of it is quite biased...or as others have stated...largely irrelevant. What you are looking for is real news that promotes one of the two emotions that will make you money in the markets - fear and greed. Whenever the market is moving with any conviction, one of those two is usually in play. And when those emotions have run their course, it's time to be fearful when they are greedy and greedy when they are fearful. Most of the news is just entertainment to fill the gaps.
I should have actually been a little more clear in my opening. I wasn't looking to somehow find a way to make news work for me. I make sure not to read any news before starting. I enjoy reading it after the fact, and laugh the how the same piece of news can be spun so differently. Its like two different newspapers in 1945 proclaiming that the Allies have both won the war, and that somehow Hitler wasn't defeated. News these days is such a tricky thing anyway, but just seeing that 3 different companies are each discussed on 2 different websites, and each paints a completely different view of the same financial data makes you really wonder who should be fired.