About the Value of the News

The main reason why people that dare play the stock market game make the wrong decisions is because they take the news they see into account and by the letter of the law. Most people, influenced by these, become confused and cannot see the real movements of the clever ones. The news is made for the na?ve people. They cause fear in the wrong moment, which cause sells at very low prices or create false expectations, which induce people to buy stocks that are already very expensive. The reason why the news is not very valuable, for these effects, resides in that the market moves with the news of the days that are in the future. To put this in another way, it is the demonstration that the market almost instantly internalizes the pertinent information much before they come out published on the paper. When news becomes made public, it no longer has any value for the effects of the market. If it were possible to report the news of the future, there would be more coherence between the content of these and the reaction of the market. If this occurred, the game of the stock market would acquire a different face and the cycles of the prices would be much larger. If the news was bad, there would be many more sellers than buyers and therefore, the prices would go down drastically before the transactions were carried out. On the other hand, if the news was positive, there would be many more buyers than sellers, and therefore the prices would go up very high before the transactions were carried out. It just so happens to be the gap between the news and the response of the market which allows the game to be carried out with success on the part of the clever ones, who trust in the overreaction of the public, which is based on the news as a forecast of how the market is going to react in face of the happenings.