Do CNBC/Bloomberg & other financial media help or hinder?

[WoodlandCreature]

I only trade part time, and have no shame in admitting I have limited success.

I do watch a lot of CNBC and Bloomberg. I can't help but think they hinder rather than help me, though.

Take last week. I was watching, I think, Fast Money - I remember hearing them say something like "who would want to be long at this stage?". That was when the S&P 500 was testing its 200 day moving average and, of course, it has now rallied around 80 points. Surely that's exactly when you do want to be long, when there's a clear risk/reward ratio (stop just below the moving average) in your favour.

Of course, now, they're all really bullish and it's as if they weren't basically saying the world was about to end just a week ago.

I guess I need to watch them without emotion - but I find it easier said than done!

I think I might try an experiment of just watching charts and the price action and not listening to anything the financial media say. What do you think?

 

[nile_croc]

I never made any money until I turned off CNBC.

I do, however, have a much better opinion of Bloomberg, as there is much less "cheerleading" and hype presented on their programs, and much more unbiased news. The only financial media that might help you make a little money is probably Investor's Business Daily, that is, if you're into trading growth stocks.

 

[safvan]

Strange cuz I have made millions using Mad Money tips! Go CNBC!





Stay away from news papers and tv screens when moving your money around! Actually in all honesty you need to stay away from these forums also (sorry t2w). If you form an opinion based on what is written here or anywhere else then you would soon be parted from your money!

Make your own opinions and stick to them.

 

[new_trader]

Of course, now, they're all really bullish and it's as if they weren't basically saying the world was about to end just a week ago.

Yes, well the public are docile and compliant aren't they?

 

[Vorbis]

The key is to form your own opinions using any solid, objective information they give out. You must work out for yourself how the information will affect order flow.

If you follow their opinions you will be moving with the crowd in a predictable way and are likely to be exploited as a liquidity provider.

 

[afarghaly9]

CNBC hypes up the stock market, because aslong as the markets are rallying they remain in business but once the second leg of the bear market starts you may not see them anymore.

 

[nile_croc]

CNBC hypes up the stock market, because aslong as the markets are rallying they remain in business but once the second leg of the bear market starts you may not see them anymore.

Definitely.

To me, all CNBC is good for is the ticker. It seems as though it's mainly a bunch of egomaniac tipsters and touts that want to go on record as having predicted the next bull market or the next crash. In reality, none of these "experts" know anything more about the market than the rest of us, and they definitely can't predict the future.

 

[tomorton]

Forums should not be used as a way to find out where to put your money. But as a way to find out how to trade, T2W is a goldmine of free advice, all you have to do is sort out the things that work for your personal style/budget/time frame. And if you need help on a part of that, just ask and someone will donate their time to help.

The mainstream financial media will neither show why things happen nor how to take advantage.

 

[glyder]

I thonk they are for entertainment only, I have never understood why these channels are always on in trading rooms in the city. The sound is usually switched off anyway, & only switched on for sport or big news events, not trading related.

 

[Doomberg]

Lol where do you think my username comes from

 

[Gromito]

go read Zerohedge.com

 

[TWD]

I've found CNBC to be a useful tool, but you have to use it correctly. It's very easy to get caught up in what people say on TV and lose money. You simply have to learn how to rise above such things.

Part of it is just realizing what's reliable. You aren't missing out on much when Mr Permabear comes on. You should never invest in dogma. However, when Ben or the president of Goldman Sachs Asset Management is on you might want to pay attention.

That's not to say that you should take any of the stock recommendations seriously. Analysts are just as fallible as the rest of us. You should look past what they say and try to determine why they are saying it. You're going to lose money if you buy every stock that Jim Cramer mentions, but listening to his analysis can teach you a lot about how to formulate an effective strategy of your own.

It's also good to help you understand what the market is thinking in general. I totally understand what you're saying about the Fast Money guys, but they are only reflecting what institutional investors are thinking at the time. This is simply the nature of the market. Use such psychology to get a leg up on the hordes.

I miss Erin

 

[Cornix]

They are good to hear news, economic releases results and other fundamentals without the need to watch news feeds on the computer screen.

But no use in committing concrete trading decisions for me.