Why Analyst Reports Aren’t What They Appear To Be

Analysts are puppets – plain and simple. We’re not here to sugar coat this business in anyway, we’re here to tell it like it is and

how the market truly operates.

Day in and day out, reports get released, designed to do one thing and one thing only – to influence price direction. This happens by enticing unsuspecting market participants to do what the report is designed to do – guide price.

Now, don’t get us wrong, we’re not here saying all analysts are full of b.s. – just most. Ulterior motives are what drive the words on the page; it’s the ugly side of this business – but it’s true. Compensation for an influential release, doesn’t always have to come in the form of cash; that’s too easy to detect. The two parties involved are playing their own game where both come out on top. Unfortunately, their win comes at the expense of market participants that are clueless to how things actually go down.

If you really think about it, with the influx of retail traders entering the market, unfortunately, most aren’t too market savvy. What’s even more unfortunate, is if these newcomers actually make some decent gains on their first few placed trades; all that does, is provide a false sense of confidence. It’s like bait – these new market participants are prime targets for analysts to entice.

Don’t get it twisted, we’re not really talking about pumping a stock – that mostly occurs with b.s. penny stock companies and greasy stock promoters. What we’re talking about here, are “reputable” analysts covering legit companies that trade on major exchanges. There’s a huge difference between the two.

When a major move occurs in a security, it’s initiated by Institutional traders, followed by analysts reports that in turn entice retail to get involved, which ultimately drives the price in the Institutional desired direction. The key ingredient in this chain of events, are the analysts that are being “paid” to dangle the carrot with their “deep-knowledge” reports.

Make no mistake about it, nine times out of ten, there are ulterior motives behind the words being released once a security makes a move.

But – it’s not all doom-n-gloom. Knowing this happens, is like seeing the dealers’ hand before laying down your bet.

Always stay one step ahead of these clowns. Understand what most are trying to do – and plot your moves accordingly. By staying a step ahead, you can avoid getting caught in their traps. You will begin to understand what’s unfolding in real-time and just step aside, to let it happen. Once the $hit$how is done, then the real moves happen and THAT’S when you join the ride. More times than not, this is the best time to get involved; in terms of risk/reward. The real buyers/sellers (depending on the direction) get involved and continue conducting the business they initiated in the beginning.

How many times have you been chopped up / stopped out after multiple entries, only to see a major move occur later in the session? We already know, the answer is many times. Do you think this is coincidental? This is an example of a well-orchestrated move, and we know how “good” some of these moves can look – we’ve been there too. But after getting kicked in the ball$ enough times, you learn – or you should at least.

It’s all about looking a little deeper. We’re all trading at a time, where even the little guy has a shot. The days of not knowing what truly goes on, are dead. The only thing holding anyone back, is their lack of discipline and work ethic. We all have access to the same information (more or less), but what you do with that opportunity is entirely up to you.

Looking past the obvious, usually leads to what you’re seeking in a trade. You have to understand that the Street wants to take your money and they will do whatever they can to do it. It’s obviously gotten much harder for ‘Smart Money’, with the level of technology in the hands of everyone now, so creative ways are always being deployed.

Bottom line, when you see an analyst release a report, take their words with a grain of salt – look deeper. Use it for what it is and only put a position on based SOLELY on YOUR own research – whether that be fundamental or technical or a bit of both. Don’t let these clowns entice a trading decision based on their words alone.

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