Daytrading calls on Television : PROS and CONS

During my initial years of daytrading I watched The CNBC, ETNOW and BLOOMBERG from 8AM to 9AM.

Looking for tips on particular day trade ideas from the technical experts.

I do not follow this strategy anymore and would like to share with you what I have analysed on this subject.
This article need to be read from a daytrader’s perspective.

CON’s of following Trading calls from Television:

1) The trading calls made by technical experts before 9AM are based on data from previous days charts. That is now 17 hours outdated.  The trading calls made before 9AM are like blind bets.

2) New information that could create a great opportunity for daytraders during the opening session do not come into the media soon enough. It starts coming in only after institutional investors have bought or sold during opening. After the opportunity has passed and the big change in price has happened. The media now starts researching for news to justify the big change in price.

3) 90{323544ffa4e7a5aa23388d63e86002a095a70a0cd35f73644a238e7406151557} of the trading calls made by technical experts have no financial interest disclosure. That means they do not trade on their own ideas.

4) Considering the odds of being profitable on a single trade is only 1:3. With many experts on 3 channels giving out as many day trading calls as possible makes no sense. This information for a beginner not knowing which one to follow reduces the odds of choosing the right idea.  Now the odds of loosing increases exponentially.

5) Too many expert consensus on the same stock is less encouraging for the Institutional Investors to participate.

 

PRO’s of following Trading calls from Television:

By following the media for daytrading calls, it is not these calls that you actually benefit from. It is the opportunity to learn from the experience and wisdom of technical experts with 20-40 years on their trading career. You can learn insights, qualities and trading discipline of these experts free of cost.

To use these trading ideas to our advantage, we need to follow the ones made after the first hour of the trading day. Scrutiny and research need to  be done before you actually take the trade position.

With many trading calls on tv failing to meet targets. This is a good proof that one could be 40 years into their trading career and still have the wrong trading ideas.