when I started trading after opening my account I use to sit and listen to the great analyst religiously! . First month I made good 7% return! .Then as usual -25% on my account next 2 months . The big analyst on tv punished me.
I find it disconcerting to listen to these analysts who never were in a board as a director or worked their way up the ladder and had responsibility over staffs of employees and had to make payroll, as the simplistic expression goes. I find it worthless that non-accomplished people and sometimes they have presided over their own companies, are allowed to publically shape opinions with their own perspectives.
That in simple words, will never be news or news casting, but simply propaganda.
In the US, a licensed individual goes over the levels of training and defensive steps necessary to indemnify their hosting employer from liability due to their wreckless words and unauthorized representations, whether through advertisements for new clients or for business or otherwise. We call them the Series 7 General Securities License, and a host of other licenses above that too. Many, many lawsuits have been brought as a result of bad advice that lost clients money. Whether or not it was approved in advance or not by their Compliance departments, at least this mechanism has been well established in the US. These regulatory safeguards will never be perfect, cheap, cost effective or blameless, but they exist and are a whole lot better than going it alone. It is deplorable that taken to the extremes that Fox Business News does, in allowing their wreckless commentators to just espouse their own prejudices, political views and twisted perspectives on news, as if that were the news story or editorial. Shame that there aren't warning labels protecting the public from such propaganda. Shame there aren't regulatory agencies that could at least vouch for the credibility of the new being related; then persons who act upon that so called news, could have legal recourse against....
Shame you couldn't take appropriate action against "those big analyst(s), that punished you".
Last edited by kronie; November 29th, 2014 at 11:41 PM.
I take everything I hear from traders with a grain of salt these days. When I first started trading everyone said not to follow or trade the news, and then over time I realize that they in fact do watch the news and usually will make trades that are in some ways connected to the information in the news. I'm not referring to Big mike here, but just in general. I've watched the channel before and it would probably be more addicting if I was a hedge fund manager who juggled a portfolio of stocks. But since most of what I do is technical analysis, the news channel is about as good of a lead as watching MTV for an aspiring orchestra pianist. I've watched mad money a few times because I read some of Jim Cramer's books and I think it's hilarious how most people are so vocal about hating him even though his success has been earned fair and square and his advice is usually solid. I can only imagine what people think about me with my theatrics coupled with insight.
Last edited by Itchymoku; November 30th, 2014 at 12:26 AM.
I unsubscribed 1.5 years ago b/c I was forced to change cable provider in my office and since that have watched it via the Internet just a dozen of times. But I can’t say I missed a lot. From my POV CNBC is quite biased in general and first of all it is a show. And remember that story when BBG was caught "spying" on its clients? For me it looked like CNBC was unleashed to bark on that all the time during few weeks. That was really hideous.
But I used to watch BBG TV regularly for many years instead. It seems more “neutral” to me.
I wonder how deep Cramer's pockets are, because he was tops at Goldman Sachs..., colleges love him, and he seems to know something about every stock in the book. Someone commented recently in the chatbox, that he pays interns and other staff so he can always look knowledgeable.
from our perspective as traders, there are two essential lessons learned:
1) there really are people like that out there, on the other side of the trade
2) welcome to what its like, in the high pressure, Wall Street, upstairs, wing tipped shoe environment, for only the most elite of the college applicants
so, now that you know there really are other people like me out there, know that this isn't a game, and only your best will allow you to profit, each and every day.
so, how do you know when its time to take a vacation day?
its when you don't come correct with 110%....
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My time overseas got me out of the habit of all cable news, and now that I'm back in the states I still run from it. I think cable news is about as good for your brain as smoking is for your lungs.
That said, I still have ThinkOrSwim for long term positions; they have a CNBC gadget with the upside that it blanks the commercials. Very rarely on big market moves I tune in to see if there is news.
Commercials are the heart of the matter IMO. News shows are not trying to inform you, but shock an increasingly fragmented audience so they will sit through the ads to see how it works out. Sad really, but I suppose groupthink was never my thing.
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Yup. And the scary truth is that the dominate force doesn't even use predefined risk going into trades half the time because it isn't a question if they'll win but by how much. They have so much liquidity it isn't about getting in at one price and out at another but how much it is possible to get in at one point without moving the market so they can get out at another point with a profit. There is always a size that is too big and it becomes a game in and of itself. I've seen it so many times where there is some force that just continually eats away and sucks up all the orders back and forth getting as many orders as physically possible it become a behemoth Juggernaut whose foot steps radiate through the headboards and inch ever so close and then Pop goes the weasel. Many traders don't even realize what's really going on in the market.
As far as Cramer I don't know why everyone gives him a hard time just like Obama. Its like when I say that to anyone I always get a "well, but no...adfjadflakfjlj". People always find something they dislike about anyone who doesn't match their internal beliefs exactly.
truth be told, my personal nerves are shot, each and every day through exhaustion of over commercialization of these so called business news channels....
I have to either mute, lower the volume to inaudible levels or simply turn off these stations, because you hear the same nauseating health warnings and legal gobbli-gook speeches following these carefully crafted idealistic dramatizations of why you need their pharmaceuticals in your life, and you too, can be skipping about, smiling and feeling better.
Then there are the too often repeated car commercials,
then there are the first run test commercials, that are aired on the business channels and eventually find their way to the normal commercial television stations.
Too many distractions, and who cares, why. Perhaps they shouldn't pay these propagandists so much, as to need to commercialize their channels so much, as to miss out on doing and fulfilling the reason why traders watch those channels, namely so as not to be caught off guard on breaking financial news.
However, the most egregious violation of that (sacred) trust, is the abuses allowed by allowing those news casters to voice their own biased, prejudices and political perspectives as if that were news. Worthless!
I like Cramer. I worked under people like Cramer. There isn't a thing that goes unnoticed in offices and professional environments, staffed by people like Cramer. I am so used to bosses like Cramer, that my particular social skills have taken a bruising on these threads, because most never achieve the Ivy League professionally demanding work environments that exist in the Investment Banking divisions of the Commercial Banks, now that they all ran like ...... when they blew up the financial markets.
my point is:
1) as traders if you are nieve to think that there aren't huge sized personalities that dominate sectors of the markets, whether exclusive to the Crude Oil pits, the Bond pits, the EMini futures pits, the Option pits or the Equity pits, then you're doing yourself such a huge disservice as to be financially criminal to one's personal wealth
2) there are a number of HFT's and other CPO's (commodity pool operators, as Tom Williams calls them) that are dominated by personalities like Jim Cramer. Imagine competing against that!
It is no coincidence that observations that are not favorable to the HFT's have become commonplace. Your comments are so spot on that you really have no idea, how correct they are. The markets have become casino'ed by those operators engaging in high tech theft under the guise of legalized investing. Where are the aggressive regulator when the markets need them?
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