Ignore the News.

I don't know one single successful trader or investor who watches any news shows during the day. I myself turn the TV and radio off during the day.

Watch these shows in the evening - unless you have a special analyst you want to see or listen to during the day.

But other than that, when the markets are open, the commentary you find on these shows will more often than not just confuse you, frighten you, or mislead you.

And always keep in mind: News does NOT dictate the major trends in any market or security. To the contrary, news flows FROM the trends!

Think about it: How often has a stock reported better-than-expected earnings, and its share price tanks? Or it announces worse-than-expected earnings, like Citibank did just the other day, and the share price soars?

The same holds true when economic stats are released by Washington like unemployment numbers, CPI, trade deficit numbers, you name it - they are all backward-looking statistics and do not create or change trends.

Rather, the statistics are the result of trends already in motion, and if you follow them, or rely on them to trade, you are virtually guaranteed to lose money.

So what can you rely on? Your own homework on the markets, whether it's based on fundamental or technical analysis. Or on an analyst you trust, and who has proven that he or she not only understands the major trends at work in the markets, but also knows the importance of sound money management concepts.