Are Financial News Networks (CNBC, Bloomberg, Fox) Bad for Traders?

Submitted by Share Trading on 23 February, 2010 - 17:05

Watching financial news networks such as CNBC, Bloomberg and Fox can be good and bad for traders.

Financial News Networks like CNBC, Bloomberg and Fox can be bad for traders but also can be helpful to traders. These financial news networks can provide informative reports about the forecast of share prices, dividends, and other relevant information. However, blindly following recommendations from these news networks can be bad for traders.

Having a continuous stream of business news from financial news helps the trader keep up to date with the stocks news, as well as a running commentary as the possible reasons to the rise and fall of the stocks they are trading or the shares they own. In this way, news networks can make better decisions about their stocks and investments. Also there are other short term trading strategies out there which rely on trading on news, so it would be important to keep track of breaking business news if utilising such a trading plan. However, having all this live financial information on your fingertips and many recommendations and other commentary being provided may wrongly influence your position in the market, in the way of influencing you to buy or sell a stock prematurely or too late.