The market is a noisy place. A good analogy would be to imagine yourself at a Electronic Dance Music concert full of teenagers all screaming at the top of their lungs, now multiply that by a few times and you get closer to how noisy the stock market is like. Within the stock market there are many different types of noise though, some are good and enjoyable, while others are annoying, (ie. EDM music).
The Bad Noise
The bad sort of noise within the market is what we have all heard before; the Television, Radio, Twitter/StockTwits, Magazines, etc. Essentially, any media source can be considered, to some degree ‘bad noise’ (perhaps even this). The consequences to listening to this noise can be detrimental to your overall emotional well-being, let alone your success in the stock market. Reading and listening to everyone’s opinion is not only a difficult task, but is physically, mentally, emotionally exhausting. This is especially true when it is your money in which you are trying to make educated decisions about through your personal preferences. If you choose to read/listen to others, it hinders your mental strength to focus and implement your personal process towards the stock-market. However, the clarification needs to be made that I think it is extremely, vitally, important to examine your process, refine it and learn more from other people. Do not shut yourself off from the outside world in the name of ‘bad noise’, rather, recognize the role it plays and the importance level it holds in your process (which shouldn’t be high).
The Good Noise
The ‘good’ noise is the exact opposite of the above ‘bad’ noise. In this case, this is the noise you want to listen to, or in other words, this is when your favorite band plays your favorite song on a Friday night in late Spring. This is, your process’ noise. Just as we discussed in the previous paragraph, all media sources have the potential to be a ‘bad noise’ (if you let it be), the only reason why we consider this to be ‘bad’ is it is not your personal process, it is someone else’s. However, when it comes to your personal process, turn up the noise, make it loud, make it heard, consume yourself in it like a crazy fan would to their favorite band.
Recognizing the difference between good and bad noise is important, not for you to ignore other’s work, but rather so you know where you stand and you can stand firm in your beliefs but all the while learning and growing from the study of other people.