You can learn more about calculated risk by watching The Game Show Network than you can by watching CNBC or Bloomberg.
Most people earnestly believe that the business media has their best interests at heart. But the reality of the situation is that TV anchors know less about stocks than the average investor. The media’s goal isn’t to teach people like you how to trade.
I say that for several reasons, and today I’ll explain where the media’s loyalty lies, their true motives, what retail traders should ignore, and what to actually pay attention to in order to succeed in trading.
Just like any business, the media’s goal is to make money. And they do that by working with advertisers… advertisers that reside in the belly of the beast that is Wall Street.
Whether it’s hedge funds or ETFs, these advertisers are the dogs that wag the business media’s tail with their purse strings. Watch CNBC for an hour, and you’ll likely see ads from JPMorgan Asset Management, E*TRADE, and others vying for your investing dollars. They’re telling the media exactly what they want them to report. The media isn’t aiming to please you or your wallet with their narrative. It’s a long-cozy, quid-pro-quo relationship that has left the little guy out in the cold.
But for the first time, we’re breaking them up. You see, we’re bearing witness to a seismic power shift in this David-and-Goliath story. Look at Reddit – it was just earlier this year that the social media site was overpowering business headlines.
The little guy had wrested control of the narrative from the business media monster, sending GameStop shares skyrocketing and creating stories about the exact information that Wall Street doesn’t want you to know – by showing you that you’re capable of taking financial power into your own hands and using that power to move the market.
Now, the media is holding onto a quiet disdain for the Reddit boards and its users.
They’re calling retail investors who profited off of the GameStop mania “Reddit-rich,” as if the money they made is dirty, worth less than what big hedge funds make every day. They’ve posted stories on bot accounts and foreign agents, refusing to call it what it was…
Wall Street losing control.
And it’s all because for the first time, the business media sees you as a threat.
It may not have been the blow that got Goliath, but it was a start. And today, we’re advancing even further.
But first, we have to backtrack. Ever heard of the story The Little Engine That Could? Well, let me tell you about The Little IPO That Couldn’t.
May 2012, inside a dark television network studio – the day of the Facebook initial public offering (IPO).
I wasn’t a reporter. I was just there to film something, and I watched as the news anchors hyped up the IPO like it was the biggest event the financial markets would ever see. I told a producer the truth – I thought the stock was overhyped. In the short term, at least.
I’ll never forget the look on his face. Let’s just say that he didn’t like that, and neither did his boss. And I’ll tell you exactly why: It didn’t fit the narrative Facebook wanted them to peddle.
After weeklong fanfare around the IPO, FB shares plunged, and they didn’t look back for more than a year. The stock didn’t move back above its IPO price until late summer 2013.
Investors had lost a ton of money. But the media didn’t care. For that entire year, almost every news network continued running hype stories, doing everything they could to shovel people into FB shares. They were practically the dead money cheer squad. Even in the face of reality, they refused to give up control of the narrative.
It’s clear they aren’t out to impress you. They’re trying to impress Mark Zuckerberg, Elon Musk, Warren Buffett, and the advertisers that control their companies. People that command attention and power – and, most of all, money.
The media is complicit in peddling Wall Street’s lies. But that’s not the only issue with blindly following online stories and TV programs. There’s another reason to ignore them.
By the time the media has the story, it’s too late for you to invest.
This is critical to understand. If the media is reporting it, then the real market makers and big-league players have already come and gone. They made their money on it, and they didn’t leave much meat on the bone for traders like you.
The key is to get into trades before everyone else knows about them. Buy Amazon when it was a bookseller. Buy Apple when all they made was desktop computers.
Once the stock hits headlines, it’ll be too hot to touch.
So that leaves one question: If you can’t trust the business media to tell you what to trade, who do you trust?
Well, it’s important to surround yourself with a smart, reliable trading circle, online or otherwise, and listen to ideas. Don’t be closed-minded. Just be guarded in whose investment advice you take and always question motives.
At the end of the day, rely on yourself. Obviously, you are the most motivated to make bank. That means turning off big business TV and turning on your trading screen. And when you do, trade what’s in front of you, not what you’re told. Sell the stocks your friends are buying – remember, you want to get into trades before everyone else.
More importantly, pay attention to what others are actually, physically trading by watching various volume stats and looking for unusual activity – in the option pit and otherwise. Watching where the money is actually being placed can tell you much more than the constant alarmists on TV ever could.
Essentially, you should only listen to people who want to make you money. It sounds simple when you say it out loud, I know. But making money should be simple.
That group doesn’t include the business media. But it does include me.
My mission is to bring you the secret information that Wall Street has been harboring for decades so that you can use it to make some money for yourself – and turn the tables on the so-called market “experts” that have been controlling the media since financial news first premiered on television.
April 19 2021