I have an open microphone policy in my trading room, which allows me to contact members of the trading room during a cash trading session. It is not uncommon to talk to a roommate and to hear a financial network jerk in the background. It is my belief that listening to financial news can be detrimental to the success of your business. These networks typically find individuals to evaluate the current market situation and make prognostication in various aspects of business investment and investment.
However, there are different problems with obtaining business information from the network. They all have an agenda that you can or should not fulfill your business. Aside from having an agenda that is usually based on a politically engaged network, many of them are only speculating on the possible consequences of day-to-day market activity. Is it good
To become a profitable trader it is essential to analyze your own chart and start trading based on that analysis. In the short term, simply chart analysis is an acceptable method of doing business with a dash of real-time indicators. There is no question that a television "talking head" can predict short-term price movements.
Your analysis is a great example of why networking trading is so much more valuable than brain trusts. I often listen to one or more financial networks before trading starts because I'm interested in stock issues that affect NASDAQ. One of the panelists common this morning was the consensus that the NQ was about to set a new high in the morning session.
Guess what The morning NQ action was on the downside, not vice versa. The market did not make the slightest attempt to rally, but remained in an obnoxious continuity channel and spent a good deal of time testing new steps. So much for television advertising So this is usually a generic guess that often coincides with the stock issue in the speaker's portfolio. Worse, there is a good probability that it may be an easy guess about what Could Happens.
Another great example of misinformation spread by these "Talking Heads" is the pre-market estimate based on the overnight futures direction. In my experience, because futures prices dropped overnight, the cash session only signaled little correlation to what the traders planned for the day. So next year, "overnight futures price action indicates that the market is moving in the bad direction" You can dismiss this information as stupid in general. Overnight traders and cash session sessions traders are two distinct groups and often have different goals and motivations.
In short, I listen to music or "enjoy the silence" when the trade and business of advice provided by an "expert" may cause you (or me) directional bias. The day when you have a skeptical distinction to make is the trade disaster recipe. Take yourself as a party and put the "expert" ahead and make your own business decisions based on what you see in the chart development.