Crypto Trading Insights | #3 - Stop Listening To (Crypto) News (feat. Anton Kreil)

There is a major misconception in the cryptosphere that is as omnipresent and taken for granted as it is in mainstream society at large: The importance of "The News". Everyone is talking about the damn news. Rather relevant today again, don't you think?

Elon Musk did this, the FED said that, oh and a freakin' amazon insider... yeah right! It's a never-ending stream of "information" that people take as reliable source in order to make better trading decisions. Or so they think.

The reality is, trading based on the news will not give you an edge, it will give those who spew that propaganda an edge. Your compliance that is.

If you are unsure why the news should be unfactual and false, why I call it propaganda and why you should never make decisions based solely on the news I fear you have some research ahead of you. Finding out how "the news" operate and just how many times they have been caught fabricating, lying and deceiving their viewers and readers is a real eye-opener.

Here are some gems to get you started or to refresh your memory ;)

Or how about this classic? Different stations, same script.

Back to the crypto-sphere.

Given that the news serve corporate and authoritarian interests in most (probably in all) cases - why would the news in crypto be any different? Why would crypto of all things be exempt from massive media manipulation where the motive is clearly monetary?

Cryptocurrency by its very nature is about money and finance, more than any other topic you could read or hear about, so why wouldn't the crypto community be especially prone to be steered, manipulated and taken advantage of? It's illogical. Of course it is all steered.

Think of all the newcomers to the space, all the kids who adore Elon and the rest of the gang like kids back in the day adored Superman and Elmo, hanging on their every word and blindly trusting them like they would their best friends.

The idea that anyone wealthy with a significant interest in a particular coin would let the peasants know about their investment plans BEFORE they make the investment is delusional. Why? Because they have a financial disadvantage from telling others before they buy themselves. Logic again, it's very simple.

The very essence of trading is to gain and bank the difference between your entry and your exit price, so it comes absolutely natural to want to find ways to increase that difference. AFTER you have opened a position, not before.

It may come as a shocker to some (hehe) but people with a lot of money do have a lot of influence. If I had a billion dollars and a plan to buy bitcoin, don't you think I could somehow manage to place a FOMO article of mine in one of the crypto-news sites which are financed solely by advertising? Of course I could. Say I would have them publish an article claiming that "an insider alleges McDonald's will start accepting crypto in 4 weeks", and I make sure that article is published right after I have taken a long position. A long position based not on any news or fundamentals but purely on technical reasons which are unknown or invisible to the public.

It will be a winner, people will pump my bags, fomo'ing in based on a fairytale because they are unable to even conceive of the idea that markets do not work like this. They never respond to news items, news items respond to market moves, they are the explanation after the fact. The explanation for the herd.

There really isn't any more need to cite the insiders who warn intensely about the news when it comes to finances but I'll share a clip of Anton Kreil here anyway. Stop following the news for trading!

Using the news is even more of a lacking indicators than all the technical indicators people use.

What about popular youtubers? Stop listening to them. There is no reason any one youtuber with hype headlines should be able to make better trading decisions than you if you just sit down and work hard at your craft.

Listening to youtubers and basing your trades on their "analysis" is plain wrong, not only because you cease making your own decisions but because you can never own the resulting outcome. If the trade goes wrong you can always blame the youtuber in question rather than yourself. If the trade goes right you start to believe you could never do it by yourself and always have to rely on someone else out there. Don't. School yourself and make your own decisions.

Now seeing what the news whores ramble on about can be useful, to get an indicator what the herd is seeing and how they are interpreting it. But more often than not these news stories are a poor man's explanation for a recent event in the market that had everything to do with technical reasons and little if anything to do with fundamental reasons.

Major turning points in the market are apparent in the chart hours before they happen - without knowing anything about any news item or fundamental development in lala newsland. These news explanations are merely there to hide this, so that the myth of a "solely random and inexplicable market" can persist. Or so I claim.

But who am I? Just some dude on the internet again. Don't trust me, don't trust anyone with trading. Learn your own lessons, build your own strategy and start to trust yourself and the market. It is all you will need to become a better trader in the long run. Listening to these media mouthpieces on the other hand will keep you forever chained to the modern financial fairytale that solely exists to extract money from you.

To be continued...

I am not a financial advisor and this is not financial advice

Read other parts of this series:
#1 - Trading Coins vs. Trading Futures
#2 - Altcoins vs. Leveraged BTC

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