Television and Forex
Should You Trust Television Pundits?
There’s been an explosion in business channels on television in recent years. From CNBC to Bloomberg, they provide market data, economic news and views from market experts, often 24 hours a day.
Can you trust them? Are they a valuable resource or a way of losing money?
We all want to make profits trading, and we’re always looking for an edge. Sometimes we’re looking for new ideas, and other times we’re losing and looking for a magic bullet. When we are, it’s tempting to watch these channels, or even dial in to hot-lines to ask experts questions.
There’s nothing wrong with doing this; the information you get can be useful. However, keep in mind that an expert opinion is just that – an opinion. When you talk to a pundit on television, the chances are that they haven’t done the research to answer your specific question. They have a lot of experience and a good track record, otherwise they wouldn’t be an expert, But, that doesn’t necessarily mean that they’re right, or that they know all the specific factors that can influence market behaviour.
Our best advice is this. Use television as another source of information, but don’t follow it blindly. You need to do your own research and make your own decisions. Above all, caveat emptor. Let the buyer beware.