“Most of the misinformation is not deliberate. People want to be led astray. They constantly ask the wrong questions, and those selling information get rewarded by giving them the answers they want.”
-Van K. Tharp, Trade Your Way to Financial Freedom.
If given the choice to deliver what’s best for the investor or what will get eyes on the screen, CNBC will choose the latter EVERY SINGLE TIME. Their only agenda is to make money via commercial advertising--more viewers, more money; that's the media business model. If they don't profit, they become extinct.
CNBC mostly caters to those who ask the wrong questions. When you start asking better, more thoughtful questions, you will realize how unnecessary an outlet like CNBC is and how vital a good trading book is. I have to admit that CNBC it is a great channel for entertainment, as they have a decent offering of shows after 7 PM, and sometimes they bring on a smart guest, but most of the time it's a really bad place for investment advice.
Questions worth asking:
How has the stock market been moving? How is it moving now? Are we in the midst of some serious range-bound price action, where the price will ultimately revert back up to ~18,000+? Or is the market headed much lower?
There are no clear answers, but these are good questions to ask before placing trades in the stock market.
Questions that are even more important to ask:
What's my investment philosophy? What’s my strategy? How much of a downdraw am I willing to experience in my account? Why am I in the markets in the first place?
Market movement is important, but we all get dealt from the same deck. You should know what you are going to do far before the market presents that reality. A confused trader is a losing trader.
PS: If you buy the book in the link, Amazon pays me ~¼ of a penny per purchase :)
All proceeds will be ultimately donated back to Amazon somehow.
No comments:
Post a Comment