You may be a seasoned investor or you may be a newbie. No matter what your status is, you need to depend a lot upon the highest quality of financial news to invest right.
This is precisely why you should learn how to filter out redundant and sensationalized news and focus on the best daily financial news. Read on to know more.
The importance of genuine financial news to invest right:
- Importance of financial news:
- Dangers of incorrect financial news:
- Processing and filtering financial news:
- Using financial news to your benefit:
1) Importance of financial news:
Financial news is important because it tells you about the market trends and the performances of the various financial instruments. It guides you in the correct direction and helps you to invest in a correct and effective manner. There are various sources of financial news. Some of them are:
Television is a very popular and wide-ranging source of information. You get all types of news and information on television. There are many dedicated news channels too that only focus on bringing you the latest news.
Further, there are dedicated financial news channels on TV as well. These channels are a good source of information for anyone looking to get financial data and news.
All the leading newspapers in India carry a finance section on a daily basis. You can read the reports and news on a daily basis and get a fair idea of the way in which the financial world works.
There are also financial newspapers that only carry financial articles and reports.
These newspapers are also a good source of financial news for investors looking to make the right investments.
News apps –
There are many financial news apps in India that are good sources of financial news. You can download these apps on your mobile phone or your PC and check the latest financial news as and when you need to do so.
To be updated about the latest financial news, download Koppr.
Financial news is widely available in financial journals. These journals are usually compiled by industry experts so they are reliable and trustworthy.
However, like every other source of financial news, a journal needs to be scanned and you need to filter out what is of less use to you.
Research material –
If you are registered with a brokerage firm, they will send you some research material to study from.
This is usually a good source of the latest financial news and you can trust it.
Choose a medium of financial news at your convenience.
But ensure the news you read or depend on is genuine. There are many dangers of referring to incorrect financial news.
Let us discuss it in greater detail in the next section.
Dangers of incorrect financial news
Many investors depend highly upon the daily financial news to get the right insight for their investments. The importance of financial news is further highlighted here.
Sadly though, when the news turns out to be redundant or ineffectual, the investor suffers heavily.
Influences the audience –
Fake or ineffective news can influence the investors’ financial decisions. They may believe what is said on the news and invest their money accordingly. This can lead to massive losses and put a harsh brake on the earnings of the investor.
If you too are an investor who relies heavily on financial news sources to make your financial decisions, read or listen to the news very carefully.
If you feel there is any ambiguity in it, go over the material once again. If needed, speak to a financial expert and get the information cross-checked.
This will prevent you from getting influenced by a redundant piece of financial news.
Difficult to identify fake news –
It is very common these days for people to place paid promotions on financial news platforms. These promotions are often disguised as news items.
As a result, the audience gets confused and is not able to spot the fake news between the real news.
Financial firms, for their own benefits, place these fake news items in between the real news pieces.
Do not fall for such misleading promotions. Look for genuine news from the most genuine of sources and keep yourself protected from making financial blunders.
Opinion, not fact –
Many a time, the news presented on a financial news channel or newspaper is someone’s opinion, not a real piece of news.
You need to be able to understand this and demarcate opinions from the news. This will stop you from making mistakes and investing in an incorrect manner.
These are some of the ways in which incorrect news reaches the investors and in the process, harm their prospects at the financial markets.
3) Processing and filtering financial news:
While as an investor you cannot really control what is being said on TV or written in a financial news India newspaper, you can identify the loopholes and filter out the irrelevant material.
Doing this will help you to focus on what is actually correct news and what is just an opinion, or straightforward deception.
Some of the red flags to look out for include:
Question #1: Who is the speaker?
Oftentimes, self-proclaimed experts are invited on TV shows to discuss matters related to finance and investments.
These people generally gain their popularity by simply creating controversies on social media or by making themselves extremely visible on TV or in newspapers.
This is done by bribing and it is also done by careful, manipulative PR activities. These people are usually very confident and prolific speakers, but what they say has very little substance or value.
They can also pass on incorrect views and opinions which can be harmful to naive investors.
This is a major reason why you should be extra careful and be very judicious about what to believe and what not to believe.
If you feel the speaker is reputed and you can trust his or her judgment, go ahead with the suggestions and tips and you will definitely make some very good investments thereafter.
Question #2: Is the news recent?
The next, and perhaps one of the most important points to consider, is whether or not the news is recent. It is not uncommon to have news presenters just read out a column from the previous days’ newspaper.
The financial world is ever-changing and even the slightest shifts in trends can change the investment patterns in a major way. This is why you should always be up-to-date with the financial news as well.
If any news seems stale or is not relevant to the current times, you need to look beyond it.
Good and trustworthy financial newspapers and TV channels usually update you about the latest happening in the financial world, so make sure you only rely on those sources.
Question #3: Is there a bias?
At times, certain news broadcasters talk about positive reports on firms and services that they have partnered with and vice-versa. For example, if they have a good relationship with a particular FMCG company, they may publish or broadcast fabricated reports about the growth of the company and how they plan to expand.
This can lead to a sudden interest in the company and the share prices will shoot up.
Many investors will then buy or sell the shares and end up making huge losses in the long run. You may also be one of the investors making such a mistake.
This is why you need to understand whether or not the news is associated with any kind of bias or not. If you get a whiff of any bias, do not rely on the news.
Rather, scan the performance of the stock in question and then make an informed and unbiased choice. This will surely help you to make the proper investment and gain higher profits in the near future.
Question #4: Is there a political motivation?
This is a serious and tricky angle, but it requires a lot of careful assessment. You may want to steer clear of politics and political biases when investing your money, but the hard fact is that politics does play an integral role in the functioning of the financial markets.
Politics determines the mood of the country. It also forms stability in society and rides majorly on human trust. All these factors in turn impact the money markets. This is why politics cannot be ignored when it comes to financial news as well.
The news you subscribe to must be politically linked, but it should not be politically motivated.
While it should uphold a clear picture of how politics is affecting the markets, it should not be partisan and highlight the political benefits you get from investing in certain places.
In other words, the news you read or listen to should be completely unbiased, while being loaded in factual detail.
Question #5: Is it just sensationalization?
Fear sells, and so a lot many times, news channels and newspapers unnecessarily hype up certain events and create a lot of noise around them.
This makes people panic and everyone watches the news channel. This is unfair and unethical journalism, but sadly, a very prevalent practice in financial journalism.
Fear and panic also lead to huge surges in demand for certain shares and a sharp fall in demand for others. This sways the market and makes it unstable.
Subsequently, we see the markets crashing all of a sudden.
It is very important for you, as well as the other investors, to identify these events of sensationalization. If you are aware of these events, you can stop yourself from getting into the panic buying and selling mode.
This won’t just serve you well, it will help to stabilize the economy as well.
If you can identify these red flags, it will become a lot easier for you to process the correct financial news and filter out the fake or inappropriate content.
Once you have the correct information with you, it will definitely become a lot easier for you to invest right and earn higher yields from your investments.
4) Using financial news to your benefit:
After you filter out the less-sensible financial data you hear or see, you will have the best and the most effective material with you.
This will help you to understand the market conditions and make the best investments.
Here are some tips on how you can use the best quality financial news to your benefit:
Write down what you process
Just staring at the TV screen or reading a newspaper article blindly may not help you to process the information. You need to understand what the experts are suggesting or what the facts point towards.
It is a good idea to re-read something that may not be very clear to you. If you keep going over the points, they will become clearer. It is also a very good idea for you to note down the important points.
If you see a vital statistic or a tip that you feel would be of use to you, write it down. Maintain a diary or journal that you can refer to as and when needed.
This will surely make the process simpler for you and you will be able to get the maximum value out of the financial news that you read or see.
Look for another viewpoint
At times, you tend to get stagnant with your research. You only read one particular financial newspaper or you just listen to one news channel.
While you may receive a lot of good insights from your preferred news source, you definitely need to branch out a little bit as well.
Different opinions may help you to look at an investment opportunity from multiple angles. This in turn will allow you to get deeper into the concepts of investing and your investment will be right on-point.
Keeping this in mind, you should try to look for multiple viewpoints before you invest.
Limit news you’re reading/viewing –
While you should definitely look for multiple opinions and viewpoints, do not spend the larger part of the day only browsing through the financial news. Reading or viewing too much can confuse you.
If you constantly look for news and analysis, it will fog your mind. You will get confused and will begin to doubt your own judgement.
You may also find it difficult to make key investment decisions. This is the reason why you should know when to switch off the news.
Gather the relevant information you have, make your notes, weigh them against the investment opportunities and then proceed towards investing your money on the correct platform.
Pick out the hard facts
As stated above, a lot of the news and data will be redundant, sensationalised, biased and of little use to you. This is why you need to scan through the news and pick out the hard facts.
Look for numerical figures, charts, tables, etc as these supply you with only facts. Rely less on the opinions of the financial experts and trust the facts more ardently.
Doing so will help you to steer clear of the non-factual data and help you in the long run.
Have an unbiased outlook
There really is no alternative to having an unbiased outlook when investing your money in the financial markets. Try to be as unbiased as possible when you read or process the financial news that is in front of you.
If you identify a tone of bias in the news, look over it and try to pick out the facts, not the biased opinions.
Identify a good source of financial news
And last but not the least, always try to look for a good source of financial news. As you know, there are many different sources of financial news available in India.
From newspapers to TV channels to financial news apps to research journals, there really is no dearth in the availability of financial news.
However, every source cannot be trusted, so look for the best possible source of financial news. Doing so will help you to invest right and earn the highest possible yields.
Keep these tips in mind when you process the best financial news. Doing so will help you to learn the best investment practices, and consequently, will help you to earn the highest amounts of dividends.
As you can clearly see from the points mentioned above, the importance of financial news is very potent and vital for investors of all categories. Whether investments are your main source of income or just a hobby, make the best use of the financial news you have at your disposal.
Just remember to scan the news carefully and filter out what you feel is irrelevant. This will help you to get the best possible guidance and you will be very successful with all of your investments.
Do not get biased when you look for or process financial news. To get unbiased news and the latest updates on the financial space around you, download Koppr.
Always approach it with an open mind. Also, look for multiple viewpoints as that will help you to look at the investment opportunity from various angles.
And finally, learn how to process the news you have at hand, as that will make the process complete and you will actually be able to apply all the learnings and make the best investments.