The Minimalist Trader: CABLE FINANCIAL NEWS

Does ANYBODY utilize this anymore?

Disclaimer: I am wholly UNqualified to comment on the current state of Cable Financial News.


I cannot tell you who the current anchors are on CNBC, BloombergTV, or Fox Business. I could probably guess which usual characters are still around, but I am certainly not up to date.

Why?

Because years ago I made a conscious and career-changing decision to pull the plug on the TV during the workday and to avoid cable financial news stations except in the most extreme of circumstances. The TV only complicated my trading and decision-making efforts. It commanded my attention when I was trying to focus on my work and was always attempting to bait or dare me to action. It seemed every hour there would be BREAKING NEWS (!) that must be acted upon immediately or I risked losing money or worse - missing the latest opportunity of a lifetime to make a quick layup scalp.

But it was not just frenetic call-to-action hyperactivity that distracted me from my goals. It was a whole perceived culture of cheerleading the markets, a lack of concern for the effects of slanted coverage on the amateur trader/investor, and a whole attitude of creating sexy celebrities out of financial pundits.

During the 1998-2002 dot.com stock mania and subsequent blow up, I traded at a trading arcade and as per usual for any trading operation of the day, there were multiple TV's scattered throughout the room tuned to CNBC from the moment we walked in the office to the moment we left. A popular "indicator" during the time was the Alan Greenspan "Brief Case" indicator. Hours of programming time were spent by CNBC on analyzing the thickness and neatness of Mr. Greenspan's brief case as he exited his chauffeured limousine and climbed the steps to the Federal Reserve or Capitol Hill to attend fed meetings or make testimony. It was believed that advanced insight on future interest rate decisions could be gleaned by interpreting the size and appearance of said brief case. Now I realized this was all done tongue-in-cheek, but there was no doubt many took these sophomoric stunts seriously considering the amount of airtime CNBC would regularly give to the idea.

And then there was the OCTOBOX...


...it's like programming engineers are in competition with each other to prove MORE and LOUDER is BETTER!! My screens can pack way more information than your screens! I mean, who thought viewers would actually enjoy listening and watching eight talking heads cut each other off and scream over each other in a fruitless effort to get their soundbites heard? It's an insult to viewers and was an immediate headache for me. I don't mean to pick on CNBC specifically as they are not the only culprits in this disservice to investors, but as the leading finance broadcaster of the day, they are an obvious offender.

All of this should make one wonder: Who's interests are being served by cable financial news? The average Joe Investor? (maybe). Brokerage firms that thrive on active trading? (probably). The invited analyst guests who are talking their book? (very likely). The Plunge Protection Team (PPT)? (a discussion for another time).

The Minimalist Trader has a tough task blocking out all the stimuli on the TV and the internets that attempt to separate him from his trading plan, and ultimately his money. Luckily, technology when used properly can serve the Minimalist Trader's needs excellently. Instead of being told by the TV what to buy and sell, she can utilize tools like StockTwits to seek targeted information, or have that information delivered to her in a way that makes sense for her. She can seek out the expertise and insight of other traders who have earned her trust via the stream of information they share with the community either on StockTwits or on their own blogs. Whichever methods you choose, you have the power to control what is delivered for your consumption instead of sitting back and letting the latest guest Hedge Fund trader on the TV tell you what you should be investing in (buying from his inventory).

Instead of watching the TV to be ready to pounce on the next quick scalp due to breaking news or an "expert tip", the Minimalist Trader invests his time wisely by reading, gathering his own information, focusing on the big picture, and putting himself in the right mental and physical states of mind to think clearly and directly about the tasks at hand. Instead of "Power Lunch", maybe you go for a Power Walk! A brisk 20 minute walk will yield far better trading ideas than an hour-long program on CNBC. And getting fresh air and exercise will yield dividends that will pay off in many more places than just the bottom line on your account statement.

Success in Trading and most other endeavors requires a focus in thought, a purity in intent, and a holistic view of what you're doing and how it fits into your Master Plan of Life. But trading and investing is not life. It is only a tool to allow you to experience yourself and your relationship with your surroundings. It is the vehicle that gets you from point A to point B, but it doesn't define you. You define you.

As I've stated before in previous posts, Minimalism is not a trading strategy, it is a mindset. A framework which guides not only your trading, but your money management, your personal finances, your outside interests, your relationships, your goals, and your health. It forsakes the fancy and involved for the simple and uncomplicated. It minimizes distractions to enable an almost zen-like focus, targeted for achievement.

The answers you seek to earn your first or next million won't be found on the television or even on this website. They will be found within yourself. The Minimalist Trader eliminates the clutter that distracts him from seeing the clearer, simpler path to profitable trading and investing. Going with the flow is not about trading the hot stock of the day based on what a blowhard on TV says, it is about gaining a sense of the rhythms of the markets and your mind.

Without the TV on in the background, you can focus.

*******

So far in this Minimalist Trader series, we've covered these enemies: High overhead, over-trading, trading with the rent money, indicator abuse, and cable financial news. In the next post, we will discuss another enemy of Minimalist Traders - the need to be right. Stay tuned for it over the next few days.



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