{"id":2174,"date":"2020-05-22T19:32:00","date_gmt":"2020-05-22T19:32:00","guid":{"rendered":""},"modified":"2025-11-07T10:40:33","modified_gmt":"2025-11-07T05:10:33","slug":"avoid-stock-market-news","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/avoid-stock-market-news\/","title":{"rendered":"Stock Market News is Dangerous for Your Wealth \u2013 Research & Ranking"},"content":{"rendered":"
<\/div>\n

Do you know why the Titanic sank? Considered to be an unsinkable ship, the mighty Titanic sank after hitting the tip of the iceberg.<\/p>\n\n\n\n

But was it really the tip of the iceberg which sank it? No, the Titanic sank because of damage that came from below the surface, i.e., damage the crew failed to see.<\/p>\n\n\n\n

While only 1% of the iceberg was visible on the surface of the ocean, 99% of the iceberg was invisible and lay beneath the water. Investing based on news is exactly like that. Often only 1% of it is visible and the rest 99% is not.<\/p>\n\n\n\n

I often come across a lot of people who invest only on the basis of stock market<\/a> news.  And this makes them more traders, rather than investors who invest on the basis the fundamental strength of the company.<\/p>\n\n\n\n

Don\u2019t you agree?<\/p>\n\n\n\n

In the business world there is a popular saying “Bad news is usually good news-for somebody else”. This is so true especially in the case of share market<\/a> news. <\/p>\n\n\n\n

Beware of deliberately fabricated stock market news<\/strong><\/h2>\n\n\n\n

At times, fabricated stock market news is released through media by entities with vested interests because they want you to believe that news offer you some sort of a competitive advantage.<\/p>\n\n\n\n

Some examples of fabricated stock market news<\/strong><\/h2>\n\n\n\n

Often, we hear the news of a certain company buying stake in another company.  Unless the news is really true, this may result in the price of the company\u2019s stock prices going up temporarily and then coming down.<\/p>\n\n\n\n

Let\u2019s look at this with the help of few examples:<\/p>\n\n\n\n

Example 1:<\/p>\n\n\n\n

News: \u201cInformation technology giant ABC company may acquire 30% stake in XYZ company\u2019\u2019.<\/p>\n\n\n\n

Impact: Shares of XYZ company will increase temporarily.<\/p>\n\n\n\n

Later when ABC company issues a clarification that there is no such plan, share of XYZ company falls.<\/p>\n\n\n\n

Example 2:<\/p>\n\n\n\n

News: \u201cPharma giant DBC company very close to developing vaccine for Covid 19\u201d<\/p>\n\n\n\n

Impact: Again, the shares of DBC company are likely to rise as many will invest anticipating a rise in the company\u2019s share price.<\/p>\n\n\n\n

However, in the event of DBC company not being able develop the vaccine or failure at clinical trial stage may lead the investors to dump the stock.<\/p>\n\n\n\n

From the above examples, it is quite clear that many a times, fabricated news is deliberately released with vested interests. Many fall for that and end up with the wrong investments<\/a> and erosion of capital.<\/p>\n\n\n\n

Investing based on stock market news can be dangerous for your financial health<\/strong><\/h2>\n\n\n\n

A series of experiments by a psychologist named Paul Andreessen has revealed the perils of investing based on stock market news.<\/p>\n\n\n\n

His experiments have shown that paying close attention to stock market news can cause investors to trade a lot and to earn lower returns than those who stay away from the news. According to him, the situation it is getting worse day by day since everyone has access to the share market news instantaneously with round the clock news.<\/p>\n\n\n\n

Ignore share market news to become a successful investor<\/strong><\/h2>\n\n\n\n

So, if you are investing for a long term, you should largely ignore the daily stock market news.<\/p>\n\n\n\n

Why? Because that\u2019s that successful investors do. The best example of this is none other than the legendry investor Warren Buffett, who prefers to remain far away from the commotion at Wall Street.  Read more about how successful investors invest.<\/p>\n\n\n\n

I am sure you know how overhyped the news are, these days. Besides, the stock market news that you come across is something which already occurred. This means markets would have already factored in the news to the stock price<\/a>, so how is it going to benefit your investments?<\/p>\n\n\n\n

If you want to become a successful investor, you can safely ignore the stock market news and stick to fundamental analysis-based investing because that is what gives you an idea of the company\u2019s financial health and it\u2019s potential to wealth create <\/a>for you. To start investing<\/a> in fundamentally sound stocks <\/p>\n\n\n\t\t

\n\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t\t\t
\t\t
\n\t\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t

Related investing topics<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t\t
\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n \n \n\n
\n
\n

\n How to Invest in Share Market? <\/h3>\n \t\t \t

Considering the volatility, investing in stock markets is both an art and science.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n \n \n\n
\n
\n

\n 5 Best Places To Live After Retirement In India <\/h3>\n \t\t \t

While some retired people set sail on voyages worldwide, others look forward to spending their time in relaxation and comfort.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n \n \n\n
\n
\n

\n 90% People Lose Money in Stocks? <\/h3>\n \t\t \t

Isn't it shocking? But it is a fact. There are countless reasons why investors lose money in stock markets.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

\n\t\t\t
\n\t\t\t\t\t\t
\n\t\t\t\t
\n\t\t\t\t\t
\n \n \n\n
\n
\n

\n Is Long Term Investing Always Safe? <\/h3>\n \t\t \t

Let\u2019s understand what long-term means before we explain why Long Term Investing may not always be safe.<\/p>\n <\/div>\n \n \n <\/div>\n <\/a>\n <\/div>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t\n\n\n\n

Read more:  How Long-term investing helps create life-changing wealth \u2013 TOI<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Do you know why the Titanic sank? Considered to be an unsinkable ship, the mighty Titanic sank after hitting the […]<\/p>\n","protected":false},"author":5,"featured_media":2175,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-2174","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2174","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/comments?post=2174"}],"version-history":[{"count":1,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2174\/revisions"}],"predecessor-version":[{"id":61777,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/posts\/2174\/revisions\/61777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media\/2175"}],"wp:attachment":[{"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/media?parent=2174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/categories?post=2174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.equentis.com\/blog\/wp-json\/wp\/v2\/tags?post=2174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}