@moneycontrolcom and @CNBCTV18News - both represent the worst forms of financial media.
* A thread on news channels/blogs *
* A thread on news channels/blogs *
If you're a trader, honestly, you don't need news or websites like moneycontrol/cnbc or tv channels. By the time something is news, its tradeability is gone. So many people don't realise this. "Buy on rumour, sell on news" (or viceversa) is popular because of this.
If you're a fundamental investor, any short term news or anything related to the company shouldn't disturb your investment as you'd have done your due diligence and also done proper vetting (assuming you're smart and not a dumbass).
If you're a technical trader - either quantitative or charts based, you are going to trade when a setup presents itself, and it's not based on news, but market participants and their psychology - which will present themselves on chart in price volume and volatility.
There's so much flak that financial analysts who often come up on TV and suggest stocks with targets and all. If you were to put all their previous calls for a public record, their win rate would be far less than a random coin toss.
From SP Tulsian to Ashwani Gujral, anyone appearing on TV talking about their positions or view or what not, are just there FOR THEIR OWN SELF INTEREST. They aren't all that altruistic to tell you a particular stock or instrument is gonna go up or down for sure, altruistically.
The moneycontrol articles talking about a stock as good investments - well, that's just a cue for either big institutions to offload, or someone pumping the stock up to ride up the price and eventually distribute it to unassuming retail.
The research calls given on TV by analysts - well, they are all well paid by promoters, companies, etc., whenever they want to offload something, to keep the market in balance as to not get bad fills on their large volume positions, so that they can take the other side and get
better price for what they sell. This is why you see consolidation at the top when institutions are distributing a stock finally, when they are done riding it, by keeping the price stable up and down in a range, with brokers and market makers supporting it long enough to get out.
And those trader interviews you see on moneycontrol? Some are of course legit. But do you think it can't be bought? Give enough money and moneycontrol will call Narendra Modi a duck.
Research and advisory firms are worse. These analysts have no fucking skin in the game, their targets are shifting goalposts, they react to stock movements, as the stocks start going up, they give a BUY rating, as it starts correcting, they give a SELL rating, and make their
research article speak quack in the name of research to justify their decisions. A lot of these research and advisory firms are getting paid to put out these buy/sell calls, sometimes by the companies themselves or promoters.
Sell side research is the worst. If you see Goldman Sachs talking negatively about something, it's definitely after the fact - after they have secured their position. If they are in a soup with a position, they will use their influence to shift market opinion about something.
In 2007, Goldman was net long on housing market and they kept putting out buy ratings and upgrades. Internally they realised they are fucked, and then they didn't de-rate or adjust their public view, until they were out of all longs and were net short. Then they issued sell calls
before they issued sell calls and after they realised they were fucked, in that particular gap, they knew the products they were selling were essentially outright junk and they sold it to their clients propping it up. Look up Goldman Sachs deposition in front of senate.
So, when these firms put out anything, always view them with a bit of skepticism and be A+ on your research game in order to have a proper view. If Goldman or MSCI says they are downgrading a particular stock, they don't release that info unless they have their shorts built in
And with their pedigree, they rally the market participants to follow their view. They are doing what kachcha cult trading trainers/investors do by front-running trades creatively and getting followers to prop the stock up - at a large scale.
Buy side firms will never share meaningful research with you unless you're one of their clients. And even then, a lot of buy side firms consistently get some wrong, some right, and those that manage to get more % of their picks right win long term.
So, when you see research calls every morning, or any advise by any broker or analyst, IGNORE. Kotak, icici, hdfc sec, nirmal bang, tulsian, anyone for that matter, just ignore. You have no business and no need watching news. It's unsubstantial and immaterial to your trading.
In the last 7 months - i have often kept news open during certain events and what i realised is, when price-action setup presented itself, I trade, and news or no-news didn't affect that.
Add to that, most news is noise. Unadulterated unnecessary noise that adds no meaning or value. These people in moneycontrol, cnbc, marketsmojo, etc., all get paid to create noise and froth in the ecosystem. You don't get much value from the noise.
While you can use moneycontrol to learn about stocks, there are way better and more efficient platforms to do that. Screener for stock screens, valueresearch for mutual funds, trendlyne for technical screening, and so on.
To sum up, news websites/channels are largely unnecessary and unimportant for trading. As long as you listen to them you won't achieve anything substantially in the world of trading. Switch them off and focus only on trading and then you might stand a chance.
