Trading 101 – How to filter out the “noise”
Website design By BotEap.comLet’s face it, the bottom line is that we’re all (well, most of us are) here to learn a little bit about investing (or day trading), and would like to make some money doing it. It really is that easy for most of us.
Website design By BotEap.comI said most for a reason, as some are here to create “noise”. When I say “noise”, I don’t mean someone who goes around cursing everyone, or someone who writes ALL CAPS.
Website design By BotEap.comIf you are serious about investing/trading and really want to understand how to do it, it is often one of the things you learn later.
Website design By BotEap.comI’m sure quite a few people here have read different investing books and one gibberish you’ll notice throughout them is that at some point the writer/investor says something like, “Once I learned to tune out ‘advice’ given by others, or the fear of missing out, due to some constantly saying “look at me and how I have increased my stock by 200% in 3 weeks, that’s when I started to become a real investor”.
Website design By BotEap.comOkay, I could argue and say… “There’s nothing wrong with someone giving me straight advice on stocks and telling me what to invest in, hell, it actually made me a lot of money.” But then, are you an investor or a player?
Website design By BotEap.comThere’s nothing wrong with being a gamer either, but you better know which way you’re approaching this.
Website design By BotEap.comSo what is noise?
Website design By BotEap.comNoise can be summed up quite simply.
Website design By BotEap.com1, “The next great action to shoot is GIO, it will go through the roof. Although DYOD… (I’m not in the stock market yet, so please don’t try to buy any of my stock!)”
Website design By BotEap.com2, “I’ve made 300% in 3 weeks on these stocks I’m showing you in my portfolio – awesome huh!”
Website design By BotEap.com3, “I’ve earned 300% in 3 weeks on these stocks I show you in my portfolio – Pay me and you too could ‘possibly’ do the same.”
Website design By BotEap.com4, “Look at how this stock is skyrocketing. If you jump in now, you might as well get some of this profit.”
Website design By BotEap.comDo you see a pattern in any of these?
Website design By BotEap.comWhat is happening is one of two things.
Website design By BotEap.com1People mention stocks (especially low volume stocks) and this COULD BE because the more people buy, the better the price…
Website design By BotEap.comOkay, you may think that on a Stocks and Shares board, the price cannot be controlled. But what you may also notice is that there are similar posts on other forums, and also on places like ADVFN. (by the way, nothing against ADVFN, it’s a great place, only one can notice that some go there to try to promote the actions too)
Website design By BotEap.comtwoPeople mention how much profit they have made and there may be a fee to join one’s services.
Website design By BotEap.comWhat they all have in common is that they all require a “call to action“somehow. There’s nothing wrong with a call to action, but in these cases, it’s not about what one can do for oneself, but rather what one can do to ‘possibly’ help others.
Website design By BotEap.comAs a trader or investor, it would be helpful for you to know what to watch out for and what to filter out.
Website design By BotEap.comIf you want to know where you are on the investment laddereither beginner or advanced then running a free dashboard test can help with this. Simply answering a few basic questions can often give people a better idea of future investment goals.