Cnbc Stock Advice

[cpatte7372]

Hello,

On Monday and Tuesday, CNBC reporters and independenat analyst, including Briefing.com all suggested getting into stocks in the steel and iron sector. Therefore, I did one of my stock scans to find the best stocks in the those respective industries that I could afford.

I came up with the following stocks, STTX, STLD, and WOR. Now, over the last few days those stocks weren't doing so well, so I thought, oh well, I'll re-evaluate the way I scan for stocks as there must be stocks in the steel and iron industry that are doing really well, 'because CNBC and BRIEFING.COM told me so'

Anyway, within the last 30mins I see on the telly that CNBC have just announced that the stocks that I picked are soaring and that anyway that had invested in those stocks would be seeing pleasant profits. Well, I immediately thought, wow my stock selection criteria is great and I was very proud of myself. So, I go back to my charts to see how well I would have done if I had gone with my stock selection and made purchases, however none of the three stocks did very at all.

So, I wonder if someone could tell me what I'm missing here? How can CNBC say that STTX, STLD, and WOR are great stocks to have invested money in if all three have done badly over the three days?

While I'm very pleased that my stocks were the exact stocks that CNBC mentioned as great stocks, I don't understand how the same stocks could be doing so badly, especially as the steel and iron sector is supposedly doing so well.

Sorry for the really long message but its the only way I can explain myself.

Cheers

Carlton

[DuaneG]

Hi Carlton,

There are some things that you should keep in mind when evaluating information from certain financial channels. Many of these programs are often geared to long term investments rather than short term trades. As you may be focused on the last three days, their focus may be over the last three months or even years. Secondly, while they sometimes touch on the technical analysis portion, they will often focus on the financial fundamentals of a stock. Finally, remember that there are leaders and laggards in every sector. Even charts with great long term patterns are subject to pullbacks and consolidations. This can equal short term weakness with long term strength. These are just a few things to consider when the media gets behind a specific industry group. Remember, define the rules of your game.

[FibbGann]

Cpatte,

Here my take on financial TV channels...

Don't listen to a word they say!

I found that I trade alot better with the TV pumpers turned off.

If they say something is a great buy, 50% of the time I will short it and make money.

The only thing that "may" help a trader is looking at the ticker tape in the morning to see whats moving.

I second what Duane said too

JMHO,

Fibbgann

[Gavishti]

Carlton,

I like to tune in to Rick Santellie from the CBOT pit when economic news is being released. Other than that, I generally keep it off. Just a bunch of noise.

[cpatte7372]

Thanks for the advice guys,

I agree. I think I'll leave the telly muted during trading hours.

Cheers

Carlton

[MR]

Several years ago I was paid to watch CNBC, taking notes, report back to the boss any good ideas.

Like most of us, I learned to discern reality from fiction, or to tell who or what was a credible source of information.

I still watch Bloomberg/CNBC/fn-- and read trade publications-- but NEVER act off their ideas. I look at charts, save a good idea, then wait for emotions to pass before ever acting.

When I was a kid I watched cartoons for entertainment. Now business shows seem like fun. Every once in a while I need to remind myself watching Wall Street Week With Louis is fun, but watching Pokeman with Seth can be priceless!