|Simple Trading Ideas||
Reading financial news is not as simple as you think especially if you haven't been investing/trading long enough time. The problem is that we often start with an answer and we are looking for information that backs it up. This is called confirmation bias. What we are doing is that we want to prove that we are right. It could be dangerous and could prevent us to get out of a losing position in time without a major loss. One way we can fight this behaviour is to read articles we disagree with. This way we can gain a perspective we would never thought of before. Another way we can train ourselves is reading old news, articles. This way we can se how many of the wildest predicitons never came true. They sole purpose was probably to cause anxiety and fear at that time. There are plenty of these kind of articles today too and we shouldn't make a major decisiion based on this kind of information. Read news not only from professional but from amateurs too. Professionals have more esperience and knowledge but they also have a boss and deadlines. They can easily turn non-news into something which sounds important. Amateurs on the other hand only write if they have something real to say. We shouldn't act on the news most of the time. The purpose of the news should only incrementally help us to understand the big picture. We should organize our news sources. This way we can find out what we can expect where and who we can trust.