Too much information.

Does it help in being profitable?

I believe not.

The fact that 90% of traders lose money was true 40 years ago. The same fact is true today. More information has not resulted into traders becoming better at their craft.

Please read on:

Why are retail traders interested in knowing what the financial institutions are doing?:

What comes to mind if we think about the most covered news item in the recent times?

It is the death of a young actor Sushant Singh Rajput.

TV channels have covered the follow up news for months so far and the people have been lapping it up.

News channels tells us on daily basis what CBI, ED and NCB are doing.

I have seen people talking about these things for hours.

I do not think that Rhea Chakravarthy going to jail and getting the bail made any difference to the lives of any of these people. Still these people were trying to get as many snippets of information as possible.

Next salacious news is the drugs related questioning of Bollywood actors.

Again people are talking about it as if this is the biggest problem facing the nation.

As if the Bollywood sets the standards for morality and social behaviour. Does it make a bit difference to our lives if an actor smokes a weed or two?

Why am going tangential about it?:

Because that is what happens these days in the times of too much information.

Too much information which we actually do not need.

Too much information which does not help in improving our life like in the above case and which does not help us in improving our profitability in case of trading.

Everyday we get to know that FIIs bought or sold so much and DIIs did the same thing. After all what else an investor/trader do?

It is like telling us that Mukesh Ambani ate three chapatis for lunch and two for dinner.

Everyone eats.

Just because a billionaire eats something should others start finding hidden meanings in that.

The guys on TV have a problem. They have to talk 24 hours a day. Some facts and lot of fiction ( even news has become fiction these days ) is required to fill these 24 hours.

We do not have this problem. We have other mundane things of life to attend to.

But human mind has always had an escapist streak. We go for the non essentials. That does not require decision making, evaluating and responsibility. We look for validation. When things go wrong, we can say that FIIs too had done so, where is my fault?

Fault or no fault, a loss happens.

I have written an answer earlier about the institutional buying/selling here:

Pramod Kumar’s answer to How do I interpret the buy, sell, contracts and OI data of FII?

Why retail traders take so much interest?:

Like I said earlier —- it is a habit to look for easy answers.

That does not help is entirely another matter.

This is what I said last year.

Traders made money in the stock markets in the days prior to internet and 24 hour news too. There were no real time streaming quotes, no real time orders, no way of confirming the price at which the trade happened.

Still good traders were profitable.

Bad traders were losers then and bad traders are losers now.

More information does not generate profit, right way of trading does. That comes with a method, financial management and discipline.

Not an easy way.

Looking at the TV screen is easy. Getting the information is easy. Traders go for what is easy.

Profit or loss is not the issue here.

Most of us just look for information because it is available.

And mostly it does not make a difference to us like nothing made a difference in SSR case.

Link to the post:

Enjoy the holiday too.

Be back here tomorrow for the trading day.

Thanks for reading.