If anyone tried this in a long term, Is it profitable or what is the win ratio for trading the stocks/options that are mentioned and recommended during CNBC programs (like first call, option action...etc) ?
Absolutely yes, most of us here at Elitetrader.com prefer to have our work done for us and handed to us by pundits so we can easily smash those buy and sell buttons.
Those people are professional talkers/writers, not professional traders. So watch the news with your eyes closed. And listen to the news with your ears closed. Do your own analysis.
I have watched CNBC, approx 10 hours daily, since before it was CNBC -- i.e., days of Financial News Network. Even these days the only use I find is for some analysis of macro news. However, re your question: 10 years ago, I had paid few hundred per month, for an audio, RT news service. Generally, news would hit that service 1 minute to 10 minutes before it hit CNBC. I found if I bought, for instance, the indiv stock mentioned on the service, and sold it about 10 - 30 seconds after it finally reaches CNBC, that would yield a quick profit. The basic approach is that once it reaches CNBC, the last buyer has already entered the market.
Why do people listen for them to call the bottom when they never called the top? 9 times out of 10, they present a bullish view...unless the market is down a lot then they are bearish. Follow them and you'll always follow the market...you'll be buying tops and selling bottoms. But since they lean bullish and the market goes up most of the time, they will be right most of the time...just not a good way to invest.
You could have made $3 trading AMAZON if you had a bloomberg terminal. The news about cost cutting came out and the stock sat at 95.xx for like 3 minutes.
%% PLENTY of noise, in every sense of the word Certain exceptions did apply; Jim Beeland Rogers+ IBD founder was on there. But i got more from their books+ newspaper, with discretion , than all the noise.
Consider who pays their salaries, commercials. Since most are brokers, they want you to buy stocks so they get commissions, in their eyes always good time to buy stocks.