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Why the News Exists & Why You Should NOT Make Financial Decisions Based Solely on News

March 24th, 2015

If you've followed the stock market for awhile, you've probably gotten insights and ideas from news events. Whether you're getting your news from TV, newspaper or online mediums - people believe it exists for a certain reason.

People believe that by following news and trends - they'll be able to find the cause and effect to stock rising higher or falling lower. Example: a news report says, "stocks head higher as oil prices rise."

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The problem is that stocks don't follow the cause and effect consistently as people want to believe. Stocks behave erratically. They behave in ways we can't always predict. There's never one direct thing that effects how the stocks move - rather many different variables coming into play. That's why it's more important to look at the big picture. You have to put together many concepts and events to see the stocks in your favor.

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However, the news is really there for entertainment or general awareness, not for you to make a cause and effect relationship in the stock market.

Remember not to use the news as dedicated information on how you should be trading your stocks - there's never a one-to-one causality between what the news is reporting and how the stocks are moving.

Author: Sasha Evdakov

Sasha is the creator of the Tradersfly and Rise2Learn. He focuses on high-level education speaking at events, writing books, and publishing video courses on business development, internet marketing, finance, and personal growth.

I'm Sasha, an educational entrepreneur and a stock trader. In addition to running my own online businesses, I also enjoy trading stocks and helping the individual investor understand the stock market. Let me share with you some techniques & concepts that I used over the last 10+ years to give you that edge in the market. Learn More

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This website and content is for information purposes only as Rise2Learn, TradersFly, and Sasha Evdakov are NOT registered as a securities broker-dealer nor an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Rise2Learn, TradersFly, and Sasha Evdakov cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Rise2Learn, TradersFly, and Sasha Evdakov in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Rise2Learn, TradersFly, and Sasha Evdakov accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.