Although I like watching Bloomberg TV or CNBC I don't trade on their information. Over the years I discovered that the traditional financial media outlets are kind of .... eh funny? Most of them can explain you a lot of things in hindsight.
I have to look it up, but I remember a FT article: 'Oil prices rise on X'. Where X was some kind of event. An hour later they changed the headline to 'Oil price falls on X', since by then the Oil futures were in the red again. The word rise was still in the url, and the article wasn't changed apart from the directional word. Shows you how good their explanations are.
For fast news on events I've always preferred the right twitter channels over the Bloomberg terminal. I think they noticed this at Bloomberg and they integrated Twitter feeds in the terminal since the beginning of 2018.
But it could be quite dangerous and currently I don't really trade on fast news or events. Even 'trustworthy' sources can be completely off in their reporting. Back in 2015 the Financial Times pushed a tweet saying the ECB left the interest rates unchanged. A big decision that surprised the market.
More than that, the news came 10 minutes before the ECB was expected to announce the rate decision. The euro surged half a percent on the news. The FT not only tweeted this announcement but linked to a freshly published article on their site explaining the decision.
Not much later, the real news came out that the ECB actually DID decide to cut rates and the FT published an apology. The price went down again, but for a lot of traders the damage was done already.
Outlets like the FT prepare multiple articles about possible outcomes to be 'on the news' as fast as possible. The journalist that day pressed the 'button' too early and the wrong button as well.
Multiple journalists and outlets copied the news, compounding the error.
Another famous example of tweets fooling the market, was the AP tweet about an explosion in the White House. Wiped of 139 billion dollars in a minute, before people realized the twitter account was hacked. Can you imagine how much money is made and lost there? Even if the index returns to the old values a lot of stop losses are wrecked.
Now I personally think one of the most rational ways to make money is having a good and deep understanding of the niche your investing in. So if you yourself are active in a certain industry you might have more knowledge about the trend and the future of that industry than the general public. But this will only give you a slight advantage if any. The real 'juice' is in more unknown strategies. How about going long on gold overnight and short during the day? A funny strategy proposed in 2010 in a sketchy article on ZeroHedge.
Nowadays I have less time to look through internet comments or random tweets to get original ideas for investing. So I am happy I recently stumbled upon a great website specializing in identifying massive asymmetric investment opportunities - and how to profit from them. This could be an asymmetric trading opportunity in the global currency markets, seeding a tech startup in Israel, or co-investing into a bespoke private equity deal in Ghana! Their service can be found at Capitalist Exploits Insider. The team is pretty impressive and they have great reviews on Trustpilot.
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