Third hand information
RedTiger
Posts: 5,608 ✭
One of the topics on my broker's (Thinkorswim) market recap, this week was third hand information over Berkshire Hathaway entering the SP500 index. The former floor traders giving the recap told stories about how the specialist and insiders would say certain things to misinform the others in the pit. By the time that story got repeated out to the TV news and edited it was twisted and near useless, and often times based on half-truths or lies to begin with. Is this manipulation? Not really, it is human nature, as folks seek information to try to get an edge, and often times get fed baloney instead.
Why is this relevant on this forum? I see so much third hand, fourth hand, and even lower tiers of information posted or linked on this forum it isn't funny. The caveat is to keep in mind that the person relaying that information often has an agenda, often will spin or tilt the information to fit their narrative. A lot of what I see here I would categorize as half-truths, or sometimes misinformation intended to deceive. I find it pointless to point it out because I don't know all. However, from where I sit, some participants are willing to swallow any baloney, from any source, as long as it fits the narrative they have playing in their own head.
Besides, I'm not here to argue. Some folks get very upset and become angry and unpleasant when someone disagrees with them. I've here to share and to listen. Others are always welcome to have a different opinion and/or take the opposite side of the trade.
The bottom line is that a person making real money decisions based on bad info would likely have been better off had they never spent the time reading the source, or hearing the info. Be careful out there. Take everything with a grain of salt. Hopefully, verify the information with another independent source that isn't quoting it from the first source.
Why is this relevant on this forum? I see so much third hand, fourth hand, and even lower tiers of information posted or linked on this forum it isn't funny. The caveat is to keep in mind that the person relaying that information often has an agenda, often will spin or tilt the information to fit their narrative. A lot of what I see here I would categorize as half-truths, or sometimes misinformation intended to deceive. I find it pointless to point it out because I don't know all. However, from where I sit, some participants are willing to swallow any baloney, from any source, as long as it fits the narrative they have playing in their own head.
Besides, I'm not here to argue. Some folks get very upset and become angry and unpleasant when someone disagrees with them. I've here to share and to listen. Others are always welcome to have a different opinion and/or take the opposite side of the trade.
The bottom line is that a person making real money decisions based on bad info would likely have been better off had they never spent the time reading the source, or hearing the info. Be careful out there. Take everything with a grain of salt. Hopefully, verify the information with another independent source that isn't quoting it from the first source.
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Comments
<< <i> The bottom line is that a person making real money decisions based on bad info would likely have been better off had they never spent the time reading the source, or hearing the info. Be careful out there. Take everything with a grain of salt. Hopefully, verify the information with another independent source that isn't quoting it from the first source. >>
Most information is already baked into the price of a stock, commodity, or collectible. The hook is to know the value of future earnings of a corporation and then buy or sell accordingly. It's rewarding to buy stocks that are hammered based on some immediate news item and knowing full well the company is on solid ground to keep growing it's biz. If you were a buyer early in 09, when the immediate news frightened the masses, you could have made some wonderful purchases in the market.
I've commented the same at least 100x over the last few years. People like to be popular and part of the "in" crowd. Unfortunately the populist view is usually wrong.
Knowledge is the enemy of fear
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
I have had good results with clearstation. Granted, it's broad brushstrokes but it has kept me out when markets were bad and in when the're good. You miss the bottoms and tops but the middle is fine with me. The most difficult aspect is acting on the simple calls. I have found external "noise" sometimes keeping me from acting. A lesson that I seem to relearn from time to time. I have had only 1 down year since clearstation's inception (1998?) and that was only 2%. As far as coins, I buy what I like and that seems to have worked well, relatively speaking.
R95