How Does Telegram News Lead to Wrong Financial Decisions?

For many Iranian traders and investors, Telegram has become one of the main news sources for the financial markets. From stock and gold analysis channels to signal groups and channels, they all broadcast and publish huge volumes of data daily and in real time. But this phenomenon has a hidden side: the extent to which news published on Telegram drives hasty, emotional and often costly financial decisions. In this article, we look at how Telegram leads to wrong financial decisions and, more broadly, the path the psychological process behind this behavior follows.

Why are Iranian traders dependent on Telegram news?

In a word, the high speed at which news spreads is why Iranian traders depend on Telegram news. But understanding a structural gap makes Telegram's prominent role in broadcasting financial market news clearer. In general, Iranians have long questioned whether there is an official news source that reports financial market news quickly, in full and in one place. That is why in Iran this information is often scattered, sometimes delayed, and published across various news sites, which sometimes cannot serve as a basis for real-time financial decisions. So it is natural for traders or investors to turn to other sources such as Telegram to get financial market news faster and more accessibly, even if those sources are less credible.

On the other hand, thanks to Telegram's special features and its popularity among Iranians, news spreads on Telegram instantly. For example, with an economic news item that has not yet been confirmed and released by official sources, everything is broadcast on Telegram, from the moment rumors spread to the likelihood of the news being true and the opinions of various people about it. This process passes through dozens of Telegram channels and groups within minutes. This speed gap has led traders to choose Telegram as their first source of information for following economic and financial news, because it makes them believe they learn about the news's impact on financial markets sooner and can therefore make the appropriate fundamental decisions. Yet this very speed advantage becomes exactly the weakness this article is about; in short, high speed does not necessarily mean the news is accurate, and even when it is accurate, it may sometimes lack precision.

The psychological mechanism behind decision-making based on Telegram news

The principle is that financial decisions should be based on data, analysis and sound logic, and if emotion is to play a part in our analysis, it must be justified by logic. When a message or news item is published in a Telegram channel or group, the human brain usually reacts emotionally before analyzing it. These reactions are rooted in several well-known psychological mechanisms, which we cover below.

Fear of missing out (FOMO) and the role of signal channels

Fear of missing out, or FOMO, short for Fear of Missing Out, is one of the drivers of human behavior, especially when dealing with social networks and the spread of news. In our context, for example, when signal channels (domestic and foreign) spread a rumor that whales are entering a particular cryptocurrency, that asset is on the verge of a price rise. In this situation, the mind of a reader who may not be a professional, instead of assessing the market logically, gets caught up in a sense of guilt about missing the opportunity. The feeling that «everyone will profit except me» leads the trader to put their capital into a trade without sufficient review.

Unfortunately, some signal or news channels are well aware of this psychological mechanism and try to intensify this sense of urgency with promotional phrases so that users have no time to think.

Fear, uncertainty and doubt (FUD) and panic selling

FUD, short for Fear, Uncertainty, Doubt, is a combination of fear, uncertainty and doubt that is usually triggered during market downturns or when negative news is released. In general, this psychological phenomenon works in economic news as follows: people seeking to scare the holders of a particular asset publish negative news about that asset so that those holders sell in panic.

FUD means that when a rumor spreads about the collapse of a project, a wave of panic selling forms even before any official confirmation. In these moments, instead of checking whether the news is accurate, some traders come under the psychological pressure of «preserving the remaining capital» and may sell their assets at lower prices; exactly the behavior that causes the greatest losses in the long run.

Herd behavior in Telegram groups and channels

Herd behavior is one of the psychological biases that also shows up in Telegram groups and channels. For example, when several people talk about buying an asset at the same time, other members follow the same path without independent analysis and, without any logic, conclude that «because many channels and people are talking about buying the asset, it must be in good shape for investment and should be bought». This behavior is especially dangerous in low-liquidity markets, because a relatively small volume of coordinated trades can create sharp price swings, and ordinary people are the last to find out.

Why can't Telegram news be a reliable source for financial decisions?

Despite its high speed and easy access, Telegram has structural features that make it unsuitable for financial decision-making:

• Lack of transparency about sources and the track record of Telegram channel and group admins: In most Telegram channels, the admin's real identity, track record, level of financial knowledge and even the truth of their claims about past profits cannot be checked or verified. This lack of transparency means the user is in practice trusting an anonymous person with their financial decisions.
• Conflict of interest: pump-and-dump and steered signals: Many owners of Telegram signal and news channels and groups have bought the asset in question themselves, and their goal in publishing the signal is to attract potential buyers to push the price up and then sell at a profit. This is one of the practices known as the improper «pump» and «dump» behavior. Clearly, in such conditions the likelihood of a conflict of interest is high, and a trader who decides based on such news or signals may incur losses.
• Rapid spread of rumors before official confirmation of the news: In Telegram's competitive environment, the priority of many channels and groups is the speed of publishing news, not the accuracy of its content. As a result, rumors and half-true or fake news spread quickly, before any official confirmation or denial, and cause the market to react. Meanwhile, it may eventually turn out that the news was completely false.

Financial consequences of decision-making based on Telegram news

Hasty decisions based on unconfirmed Telegram news usually lead to specific behavioral patterns, each with predictable financial consequences:

How can we avoid emotional decisions based on Telegram news? 

Obviously, we cannot stay away from news channels like Telegram. But with a few sound strategies, we can greatly reduce the negative effects of Telegram news. Below are some of them:

1. Never trade based on unconfirmed news

Before any trade, verify the news with at least a few other credible, independent domestic and foreign sources. If a piece of news is important and credible, it will quickly be reflected in official sources as well.

2. Set your trading strategy in advance and stick to it

When your entry points, exit points, stop loss and take profit are set in advance and with a calm mind, the chance of deviating from your plan because of a momentary Telegram message drops sharply.

3. Independently verify the credibility of channels and admins as much as possible

Before following the signals or analysis of any Telegram channel, check its real performance record, its transparency in announcing news and signals, and whether or not there is a conflict of interest.

4. Strengthen your awareness of your own behavioral biases

Recognizing and being aware of behavioral and cognitive biases can act as a powerful defensive tool and make you conscious of your own cognitive and behavioral flaws. This can help you when you come across news on Telegram, because you can tell whether or not you are making a bias-driven decision.