One of the toughest challenges you’ll face as a trader is sorting through the massive flood of information thrown at you daily.
From market headlines to earnings reports to the never-ending chatter on social media, it’s easy to feel overwhelmed. The real test is knowing what’s a valuable signal—and what’s just distracting noise.
Learning to distinguish between the two is crucial. The market thrives on information…
But not all information is created equal.
You need to stop wasting mental energy on distractions.
Let me help you figure out how to filter out the noise and lock in on the signals that really matter.
Table of Contents
What’s the Difference Between Signal and Noise?
Signal:
Actionable, meaningful information that has the potential to impact the market or a specific stock. This could be fundamental data, economic events, or key technical signals.
Noise:
Anything irrelevant or misleading—short-term price fluctuations, media hype, or emotional reactions to small news events.
These are all the things that can distract you from making solid trading decisions.
The better you get at tuning out the noise, the more focused and disciplined you’ll be when you look for profitable trades.
Here’s how to do it:
Stick to Reliable Sources of Information
Not all news is created equal. If you’re constantly chasing headlines or relying on Reddit posts from random users, you’re setting yourself up for failure.
Here’s where you should be looking for signal:
- Official financial reports: Quarterly earnings, balance sheets, and income statements provide hard data that doesn’t lie.
- Earnings reports: Focus on the actual numbers and how the market reacts, not just the comments made during conference calls.
- Trusted financial outlets: Look to respected names like Bloomberg, The Wall Street Journal, and Reuters. They offer in-depth analysis instead of the hype you’ll find on social media.
The goal here is simple: Limit your intake to credible sources so you’re focusing only on information that can actually help you make informed decisions.
This is where our Breaking News Chat service can do much of the work for you.
It separates all the noise from what’s actionable for stocks on the move.
Here’s how it works:
We have two veteran Wall Street analysts with decades of combined experience who monitor all the news feeds out there.
And these analysts cut through all the fluff and useless news for traders…It’s about getting down to the right information, the details that have the potential to move stocks.
Get the News You Can Use with Breaking News Chat!\\
Use Technical Analysis to Cut Through the Noise
Technical analysis is the best way to filter out emotional noise and focus on price action.
Price and volume tell the truth. Follow them, and you’ll be less likely to get caught up in market chatter.
Here are a few technical tools I recommend:
VWAP (Volume Weighted Average Price):
If you know me, you know this is my favorite indicator. It’s so simple and an easy way to know if the buyers or the sellers are in charge.
Read more about the VWAP Hold pattern in Friday’s blog post.
Volume:
Don’t overlook volume. Large price moves on high volume signal strong interest, which can confirm a trend. Low-volume moves? Usually just noise.
Have a Trading Plan (And Stick to It)
I’ve said it before, and I’ll say it again: You need a plan.
Your plan should include:
Entry and exit rules:
Define your price targets and risk levels before entering any trade.
Risk management strategies:
Always set your stop loss before you hit the “buy” button.
My Final Thoughts…
The difference between successful traders and everyone else is their ability to block out distractions and focus on the information that drives real market moves.
By sticking to reliable sources, using technical analysis, and following a disciplined trading plan, you’ll gain an edge in a world where information overload is the norm.
For more mentorship and trading tips and tricks, subscribe to my StocksToTrade Advisory service today.
You’ll also get a monthly newsletter with a list of my top picks, three weekly videos with my watchlists, bonus reports, and more.
Sign up for StocksToTrade Advisory right here!
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade