Information is directly convertible into power and success in many industries, and finances are the key one among them. So much so that there are laws on books—insider trading laws—that codify circumstances and sources of information that are considered prohibited. While the number of people who get caught in the act is fairly small—the SEC prosecutes around 50 cases per year, which accounts for only a meager percentage of all insider trading cases—the risk is still too high for it to become a regular practice.
Still, traders need information to feed their decisions. As a top-performing trader in the volume-based trading niche and the co-founder of the Goblin Gang, Gary Trades knows that good info is worth its weight in gold, but only if it doesn’t get anyone into trouble. Here, he breaks down where traders generally look for actionable information.
The Business Media
The dinosaur in the field, news networks with dedicated programming about business and finances, are still a very valuable source for information that should be followed. Outlets like Bloomberg and Fox Business are bona fide institutions, and they are still the places to go and announce big news.
“Trading is about taking a lot of information to make sure you’re making the right decision, or at least as sure as you can be,” explains Gary Trades (Mystic Mac). “Traditional media is still a valuable source, even if the other sources are a bit newer and faster.”
Is there a better way of getting news than straight from the horse’s mouth? Companies will employ a variety of ways to spread information about themselves that can be very useful for the trader.
“Companies will put out press releases, release information to their website, even live stream investor calls,” Gary Trades says. “As they embrace digital channels, it’s becoming easier to follow them.
Some people will share their conclusion on the market—their insights, or things they’ve arrived at via their unique thought process. It’s also possible to find people who will crunch numbers so that others don’t have to, making them incredibly valuable members of the trading community.
“Analysts don’t have to be traders in their own right,” Gary explains, “but they’ll be people with intimate knowledge about the market. Some of them might be more knowledgeable than most traders.”
The Social Channels
The newest addition to the bunch is social platforms with channels where traders, analysts, and those who would like to become either like to congregate. This is where Fintwit and the many Discord channels with trading groups belong.
“I like to use Twitter, myself,” says Gary Trades. “It’s a great tool for talking with the followers and making sure that I share the wealth of knowledge that I gather. Plus, it helps me stay in touch with my base and keep my feet on the ground, something that every trader should do. Especially when they’re doing as well as I am.”