Lesson 1 of 4 · 5 min read
Reading financial news
How to separate signal from noise in the endless stream of news.
News moves prices — but expectations move them more
The market has already priced in expectations. A company can report record profits and still fall, because analysts expected even more. There's a reason 'buy the rumor, sell the news' exists.
Who's saying it, and why?
Always ask yourself: who benefits from this news? An 'analyst' hyping a stock may own it themselves. Headlines are made to be clicked, not to make you rich.
Long term vs noise
95% of daily news is noise for a long-term investor. Ask: does this change the company's earning power over the next 5 years? If not, it's probably just noise.
Reliable sources
Lean on primary sources (official quarterly figures, press releases) and reputable media over anonymous tips on social media or Telegram groups.
Remember this
- The market has already priced in expectations: record profits can still fall.
- Always ask who benefits from a piece of news; headlines want clicks.
- 95% of daily news is noise; does it affect the 5-year earning power?
- Lean on primary sources, not on anonymous tips.
There is a quiz for this lesson
2 questions that check whether it stuck. They live in the app, because a quiz nobody grades teaches nothing.
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