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Technical Tuesday: Careful! - The Media Will Steer You To The Poor House
By: Tycoon Report   Tuesday, February 21, 2012 2:14 PM
Symbols: MSFT
The financial media does serious damage to your investment account -- no joke!

Markets can only move when people are acting on their sophisticated research. They don't move on "stories" as much as they move on "action".

Why do bear markets bottom out long before the economic recovery is "underway," and the before media starts reporting reasons for the bounce?

Think about this: Even when I was a rookie money manager, I was able to literally move stocks 20%, 50% or 100% if they were small cap stocks that only traded 50,000 - 100,000 shares per day. This was with NO NEWS on the company. Just based on my own humble opinion that it was worth more.

In fact, anyone reading this article can use what they have in the market to actually move certain stocks up 30% or so, if those stocks trade light enough volume. I'm talking illiquid stocks.

This is because a) there aren't many shares outstanding, and b) there isn't much of a market (not many sellers of the stock you're buying).

But when a few people can change directions of stocks like Exxon Mobil, Intel and Microsoft that have 5-8 billion shares outstanding and trade 20m to 200m shares per day, you know those people have the cash to get the true story. And when the market closes, you'll hear the media creating reasons why it happened (they have 5 easy canned reasons that apply to any move -- just in case).

Listening to those reporting on what financial markets are doing can often do more harm than good. If everyone knows this already, then why do they bother to keep listening?

ANSWER: Because they don't feel confident enough to formulate their own opinion on the market. But I'm telling you right now you DO have that ability. You can formulate your opinion based on what the power players with the market-moving money are telling you. They are speaking to you whether you know it or not, just as a crime scene speaks to a crime scene investigator, or the way a body speaks to a doctor or coroner. Big players leave clear footprints, and history repeats itself.

Price action tells the true story.

You can formulate your opinion by understanding technical analysis. These players are casting their votes with dollars every day. You just have to do two things:
  1. Understand how to hear what they are telling you (simple education of technical analysis that anyone can grasp).
     
  2. Actually bother to listen to what you're hearing (which means fighting your own human emotion that causes the most seasoned technical analysis veterans to stray from their time tested indicators and systems).

In The Tycoon Report, which is free, and in Technical Analysis Millionaire, which is my educational program, I will give you the best strategies on how to completely hedge yourself from human emotional errors in the exact way I was taught by people who actually move entire stock markets with their decisions. This part can't be perfected right away, but you now have someone with Wall Street blood pumping through his veins to assist.

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