Even smart people with loads of data still get it wrong...
| | | Expect the Worst: the Truth About Stock Analysts | | | Everyone's got an opinion… It seems like every time there's a big announcement in the finance world, there's a slew of analysts publishing 'expectations' of what they think will happen. This includes jobs reports, consumer spending, and quarterly earnings. The problem with predicting? We're all human. Humans can't predict the future. Sure, we get lucky every now and again. But it's luck — not science. Even smart people with loads of data still get it wrong. So why does everyone get so excited about analyst expectations? Are they actually good for anything? It's a simple fact: Wall Street is full of fakes, liars, and cheats. So you shouldn't just take analysts at their word. Let's take a look at who these analysts are, their motives … and how to use them to your advantage. | |
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In the world of finance, analyst ratings come from all sorts of sources — from large banks and brokers to individual bloggers. Analysts conduct research and gather data. They crunch the data and tell you what to 'expect.' Where's that data coming from? Well, that depends. Some analysts pull data from public sources. For example, an analyst recently predicted Tesla, Inc. (Nasdaq: TSLA) would beat sales expectations. They based this analysis on the fact that Tesla app downloads were higher than usual. This information was available to the public through the app store. Other times, the data they use is not publicly available. Some analysts will buy data from sources like credit card companies or private firms. Once they've amassed the data, analysts try to make sense of it. The problem? They get it wrong more often than they get it right. So why do these reports get so much attention? | Traders want a reason to buy. Brokers want traders to buy and sell. From the point of view of a bank or broker, analyst reports are awesome. Because they're right? No. Because they give traders a reason to buy or sell. Banks and brokers don't make money unless their clients are trading. So to give us a reason to trade they issue these reports. It's simple human nature — a stock seems undervalued when the earnings report beats the analyst expectations. In truth, these 'expectations' are beat roughly 70% of the time. Analysts tend to estimate low, and this attracts more traders. | |
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| | There's an opportunity to get Paul's #1 stock trading pattern… and potentially start making trades from home in the next coming weeks… |
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Most traders don't think for themselves. They follow these recommendations blindly. Not-so-coincidentally, most people lose money in the market. Usually, analyst reports are self-serving in one way or another. They count on the fact that individual investors will probably just trust the report. Most analysts are no different than the stock market gurus you find all over Twitter. They manipulate for their own gain. Now you know the truth ... Hopefully it makes you jaded enough to never trust someone who tells you buy or sell any stock. | The Value of Analyst Reports Don't worry, it's not all bad news. Analyst reports do have the positive effect of bringing attention to particular stocks or sectors. New interest can drive price moves. If the report is compelling and widely-read, it could create more demand for a stock. But don't make a trade based on one report alone. Read them, but don't believe them — use them for your personal trend forecasting. Favorable reports can be a great catalyst, but they should be only part of your trading plan.Your trades should be based on a set of rules that you establish ahead of time. | |
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Shadow me for the next 30 days and I'll show you why I have… | | 100% work from my home...I'm my own boss...I make my own hours... my top students are already making $745, $1,457, even $4,000+ in a single day!
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When a Wall Streeter acts like a buddy who wants to give you a hot stock lead, you should be very skeptical. Everyone on Wall Street has an agenda. So when you're considering a trade, think for yourself and have a plan. Every trade you enter should have three critical parts lined out ahead of time: Your ideal entry A stop in case you're wrong A profit target in case you're right
Analysts try to get you to act blindly. Do let them fool you. Trade your own plan. | So-called 'expectations' usually aren't what they seem. Not every analyst out there is truly trying to manipulate you ... but it's hard to tell who is and who isn't. That's why your best bet is to never trust anyone and always expect the worst. This way, you'll never be disappointed. Always follow a trading plan based on your own set of rules. Never make a trade just because someone tells you to or an analyst gives a 'buy' rating. Think for yourself, Paul Scolardi Editor, Swing Trade Millionaires | P.S. Want an edge over everyone else? Tim Sykes is letting YOU watch him trade in real-time… This Friday (Oct. 2nd). If you want to see how he handles the pre-election market and finds stocks that are about to move big... Join him. He'll be sharing his screen all-day, answering your questions, and giving you his strategies This is an amazing opportunity to learn from a living legend… Click here to see how you can get involved | | *Results not typical. Paul Scolardi teaches skills others have used to make money. Most who receive free or paid content will make little or no money. Most traders lose money. We do not guarantee any outcome regarding your earnings or income as the factors that impact such results are numerous and uncontrollable. You understand and agree you will consider the important risk factors in deciding to purchase any of our products or services. Past performance in the market is not indicative of future results. | This is for information purposes only as Millionaire Media, LLC is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. We are not a licensed investment professional, and we do not give investment advice. Always consult a licensed investment professional when seeking investment advice. Millionaire Media, LLC cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media, LLC in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media, LLC accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns. | | |
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