A few years ago I used to read the financial newspaper with a consistency worthy of an academic professor. I convinced myself I had a thorough understanding of the business and financial world. I could give you any explanation possible about any little move of the markets and any little variation of the economy. I knew it all!
Yet although I knew it all, I never made money out of it. I lost it. Even after losing money I knew what had happened. And I knew what to do to avoid that from happening again. What happened next? I lost money again. Until I came across a book, The Black Swan, which made me realize how wrong and deluded I was.
When you read the news, not only you won’t become better at understanding the economy and business in general. You’ll become less aware of them. The only thing that will grow will be your illusion of understanding. In short, the gap between what you know and what you think you know will widen to the point in which you will lose all your money. Before that happening keep one thing in mind.
What you read on the news is only noise!
