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Apr16
Why Trading on Automatic News is Idiotic

The idea that bank trading desks and hedge funds are investing in computers that are programmed to trade automatically based upon news stories, is a great example of what not to get involved in if you want to make it in online marketing or any other endeavor successfully.

One article calling this a "recent breakthrough" shows how easy it is to get caught up with this type of nonsense. It said this: "Hedge funds and bank trading desks are pouring unprecedented sums into such computers to find faster and more inventive ways to outsmart their rivals."

The reason why this is ignorant is that historically this way of trading has proven to be far inferior to finding a few good investments and simply holding them over the long haul. This type of playing with money (it can't be called investing) is for those types who think they're players. They're the same ones that might go to Automatic%20News.jpgVegas and drop a few hundred thousand to a $1 million playing the various games there over a weekend.

Even the greatest investor in the world, Warren Buffett, stays in Omaha, Nebraska so he's not caught up with the hundred stories you hear by noon about the next greatest thing to invest in.

The reason I'm bringing this up is to show how in our marketing efforts as well, we need to keep ourselves from following the endless "next big thing" that is promoted almost daily on the Internet.

The reality for any business success, whether online of off, is doing a lot of little things right, not some type of secret technology that will make the difference between your success and someone else's.

Think of the logic of the idea of buying computers for the type of investing above. What happens when everybody has the computers? Who then has an advantage? Then somebody will say they've got a new widget or add-on that will make someone more competitive over the original computers. Then the herd will all go and get that, and everybody will be the same again. And on and on you go.

Just don't be caught up in the hype because it sounds cool or fun. That has absolutely nothing to do with being successful in business or marketing.

Pay attention to your core purpose and values and make decisions based upon that only. If it doesn't line up with them, don't allow yourself to go another route. It will always bring disaster.


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