News And Information--A Trader's Best Friends
As you can probably tell from our articles here that we often emphasize the use of news, information and data when trading. 
Having the information at your fingertips can easily spell the difference between making a profit and throwing your money away.
With information so freely available through the internet and cable television, it's a wonder why statistics like "70% of all day traders fail" still exist. The truth is, there is good information and there is wrong information. For beginners, it is quite important for you to be able to discern them.
With information so freely available through the internet and cable television, it's a wonder why statistics like "70% of all day traders fail" still exist. The truth is, there is good information and there is wrong information. For beginners, it is quite important for you to be able to discern them.
One of the surest ways to get your daily dose of wrong information is by joining forums (or is it "fora"). Picking on beginners really does occur on these forums. Some of the predators in there engage in a practice called "ramping" which is to pass on exaggerated pricing info on certain stocks so that they can profit handsomely off of others' ignorance. These stocks are mostly speculative or outright junk.
Another method of ramping is by way of junk email or spam. The unscrupulous trader blasts millions of emails containing a "hot tip" on a particular stock that's about to "take off". The inexperienced recipient may actually buy in on the tip thus exposing themselves to buying junk stocks or even becoming a victim of a cyber crime.
The point is these kinds of information are just too good to be true, and that alone should raise some alarm bells. Beginners usually fall for them because they do not possess the discipline to accept the fact that profiting from trading should be a consistent process and not a one-time, strike-it-rich proposition.
The experienced trader knows that the traditional channels of information are the good and useful ones. These are your financial newspapers and magazines, business and financial cable channels such as Bloomberg or CNBC, and the advice that you get from a stock broker or a trading coaching. You do not even have to go to great lengths to interpret the information because these professionals will do it for you.
On the web there are also a lot of non-traditional sources of stocks trading information like financial websites and professional stock analyses sites. They give you a daily report of how certain issues are doing and even provide credible tips on what issues to watch out for.
Professional brokers and coaches in particular have access to additional information like subscription news services and on-demand information. This definitely gives them the edge over a common day trader who only rely on what they see on TV or read in the papers.
So as you can see, the information age really is all about putting the right information to good use. They are easily available but you must do yourself a favor by not falling for the "too good to be true" types. Stick to the usual sources or hire a professional to guide you. And with patience and perseverance, you will soon find out that stocks trading can indeed be a profitable venture.
Another method of ramping is by way of junk email or spam. The unscrupulous trader blasts millions of emails containing a "hot tip" on a particular stock that's about to "take off". The inexperienced recipient may actually buy in on the tip thus exposing themselves to buying junk stocks or even becoming a victim of a cyber crime.
The point is these kinds of information are just too good to be true, and that alone should raise some alarm bells. Beginners usually fall for them because they do not possess the discipline to accept the fact that profiting from trading should be a consistent process and not a one-time, strike-it-rich proposition.
The experienced trader knows that the traditional channels of information are the good and useful ones. These are your financial newspapers and magazines, business and financial cable channels such as Bloomberg or CNBC, and the advice that you get from a stock broker or a trading coaching. You do not even have to go to great lengths to interpret the information because these professionals will do it for you.
On the web there are also a lot of non-traditional sources of stocks trading information
Professional brokers and coaches in particular have access to additional information like subscription news services and on-demand information. This definitely gives them the edge over a common day trader who only rely on what they see on TV or read in the papers.
So as you can see, the information age really is all about putting the right information to good use. They are easily available but you must do yourself a favor by not falling for the "too good to be true" types. Stick to the usual sources or hire a professional to guide you. And with patience and perseverance, you will soon find out that stocks trading can indeed be a profitable venture.
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