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."


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.


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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