[ Pobierz całość w formacie PDF ]
.But therewere serious comments about my race and position in life thatcompelled me to respond (something I wouldn t do these days nomatter how ignorant the comments).I only had to wait a few days,because the stock opened higher one day and took off like a rocket.My client made a lot of money and I took the opportunity to talksmack in that very same chat room.I never looked into the matter again and wished I didn t bothereven then.The point is there will be good information in chatrooms from time to time, but it is significantly dwarfed by horren-dous information.Only bother with chat rooms when all othersources of intelligence have been exhausted, and be prepared tolook with a jaundiced eye at the reasons and rationales presented.It might be an answer to a question, but it could also be the wronganswer.Web logs, or blogs, by contrast, seem to be making strides to le-gitimacy.Unlike chat rooms where folks come in under the cloakof false names and handles, blogs are accountable and therefore Ibelieve the information is a lot better.The blog phenomenon ischanging the news business, but there are some worries, too.Mostblogs have built-in agendas so the information may be tilted in acertain manner.Also, blogs have limited staff or, in many cases, nostaff at all, so they rely on unfettered information and rumors asthey race to be the first with the news.Many times that news is in-correct.ccc_payne_245-258_ch10.qxd 3/13/07 8:01 AM Page 251Staying in the Game by Staying Informed 251Still, blogs are much better than chat rooms as a source of infor-mation in general and for stock market information, too.Even so,blogs should only be part of your research and not the sole sourceof information.Newspapers and MagazinesThere is also a lot of information known in research circles asfuzzy information; these are articles in periodicals and maga-zines.The daily information from the Wall Street Journal, Finan-cial Times, and Investor s Business Daily is great for learning aboutstocks.Investor s Business Daily, in particular, is great for thosetrading stocks.The Wall Street JournalThe Wall Street Journal (WSJ) is a great paper; it covers so much andgets to the bottom of things both financial and political.Thesedays the Journal is best at getting beneath the surface, particularlyafter the new topic has made a big splash.The Journal is still thedefinitive source for accuracy in the world of money.With unfet-tered access to the big boys, you will know what the official partylines are at the largest funds and with the smartest investors (al-though it could be argued that the really smart folks don t speak tothe media, not even to the WSJ).Always begin with the  C section when you read the Journal.The key columns include: Heard on the Street Abreast of the Market Ahead of the Tape Long and ShortInvestor s Business DailyThis is a great newspaper and fills a void.It is an actionablenewspaper.The stories are short, focused, and topical.The onlyccc_payne_245-258_ch10.qxd 3/13/07 8:01 AM Page 252252 ACT AND GET RICHdrawback is the paper creates a trading mentality and helps topush stocks to overvalued levels.William O Neil has created agreat formula for highlighting hot stocks based on relativestrength.The thing is, by the time the RS reading reaches itshighest point, the stock has already made a sizable move.Still, for folks looking for trading ideas, historical anecdotes, in-spirational stories, and how to list, this paper should be a dailyread.It includes these key features:IBD 100: A list of the hottest stocks in the market.There is a fo-cus on certain metrics and one sentence to explain the companyor current trends at the company. Inside the 100 : A column that gives greater detail on news-worthy companies on the IBD 100 list. Investor s Corner : Provides solid insight on several aspects ofinvesting in the market.Barron sThis is the smartest read for investors, but at the same time it isthe most negative.If there is a nugget of negativity in the air,whether it s from an upcoming round of corporate earnings, in-terest rates, the economy, commodity prices, or consumer confi-dence, that negativity will be magnified.Be that as it may, thepaper is usually on point, albeit not right away.It s not uncom-mon to read about a great article that predicted news only a yearearlier.In addition, I believe the paper is too conservative and featuresonly the old-guard money managers whose thinking isn t veryelastic or distinguishable from one another.Sure, these folks areaccomplished, but it would be great to see a larger variety of peo-ple with different approaches.The paper is elitist and looking forreturns designed for the wealthy.It s fine for the wealthy to becontent with annual returns of 6 percent, but the person readingthe paper religiously and looking for more is going to be ham-strung.ccc_payne_245-258_ch10.qxd 3/13/07 8:01 AM Page 253Staying in the Game by Staying Informed 253Key columns and features include: Up and Down Wall Street : Usually written by Alan Abelson,the column is witty but will remind you of that uncle who wasthe antithesis of the eternal optimist. Reviews and Previews : A glance at the past week and high-lights of key goings-on in the coming week. First Feature : Usually a piece on a Fortune 500 company andthe cover story; the reporting will be detailed and prescient. The Trader : My favorite is usually written by Michael Santoliand gives good insight on what really occurred during the week. Market Laboratory : A lot of information but only if its notfootball season and the kids are still in bed.Barron s has a lot of juice, and each Monday stocks move fromthe so-called Barron s bounce; often traders will try to buy thebounce if that Monday morning move is to the downside.It s atechnique I ve used in the past when the initial reaction was tooharsh, but the optimum word here is trade.In the long run theseguys are usually right they can smell a rat inside an individualcompany long before the rest of us can [ Pobierz całość w formacie PDF ]