I got a lot of people telling me this week the Fed is coming out with a QE plan or this company earnings is good or Obama is trying to create more jobs etc..Everyday there are tons of news releasing from the media. How do I handle with all these news? I am listening to NONE of them. The only time I listen is for leisure purposes and it will NEVER be used as a medium for my trading plan.
Above is an example where Warren Buffer bought BAC shares and what happened after that day? Those who jumped in thinking that Buffet's deal is going to save you, you would be traumatized by now and would have already relinquished. The news and announcements are really good tools to guide investors and traders in a way that continually takes them in an opposite direction from where they wish to go and points them in a direction which allows them to consistently lose money. Financial news are only useful, if it is used as a contrary indicator. At least, that's the way how I view it.
http://dealbook.nytimes.com/2011/08/25/buffett-to-invest-5-billion-in-bank-of-america/
Ronald K
