Trading: How to cut out the noise in a DIY world.

We are in a do-it-yourself world. More people will be interested in managing their own wealth which will include trading on their own. The middleman brokers will have to shift to providing insights versus mechanical services like opening accounts and creating churn by offering new products.

I have grown suspect of the narrative that middlemen are imbued with the best and maximum knowledge. The surprise markets are expressing over the Trump tariffs and the disappoint (again) from a fizzling Trump bump should tell the average trader that they should develop their own approaches to analyzing law, politics, public policy, and other events.

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So, what approach should you take when gathering and ascertaining information? How do you cut out the noise?

First, you should ask yourself why it is important to cut through the noise and manage risk on your own. Simply put, it is your money and you should not underestimate your ability to think for yourself. You should no longer subject yourself to gurus who want you to funnel all questions primarily through them. Unless they have a fiduciary duty to provide you with the best information, their calls for you to listen to them and only them should make you wary.

It should be the opposite. If they are worth their salt as an advisor, they should welcome various thoughts and perspectives while facilitating your path to success.

Second, use the four corners approach to analyzing events. You should avoid reading media reports until after digesting on your own an announcement from the central bank and the three branches of State power. Make your own assessment of what the Federal Reserve and the Judicial, Executive, and Legislative branches are saying, define the technical terms being used in their announcements, and afterwards, refer to alternative viewpoints offered by media and the gurus.

You should have an initial view on the world before being bombarded by views from the media, whether mainstream or social.

The gurus want to bring you into their schools of thought. Your ability to create your own universe is antithesis to their current business model. The gurus should be adjusting to a model where they facilitate the growth of your trading universe. You don’t need to walk hand-in-hand with the guru. You just need the guru to provide technical definitions, technical insights and solutions for where you want to go.

You don’t need a general to follow. You need a warrant officer or specialist to provide you with technical backup.

Many traders have been caught off-guard by the recent tumult in the markets due to a failure in developing and trusting their own market universe. Take the time to develop your own.

Alton Drew

7 April 2025

I am available to talk about the law and the markets. Contact me at altondrew@altondrew.com to set an appointment. My fee is $250 per hour.

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