The dangers in listening to the news
Updated
I'm sharing a chart to give my sentiments about listening to the news. New traders especially tend to listen to the news and website opinions about where markets are heading. I show a bit on how I approached a particular situation on the US30.
A lot of news is late and people who create news items or blogs have their own biases, based on the information they have.
The news can be dangerous to trading as it can cause a trader to become apprehensive, doubtful and stay out of trade setups that may be quite sound for entry.
News can be depressing and cause a trader anxiety.
Some very important earthshaking news may be useful e.g. some major monetary policy change in Europe or America. But on the whole, listening to or reading news is fraught with problems.
I've found that I make better decisions when I approach the markets with a kind of fearlessness described by Mark Douglas. The fearless state of mind is not 'recklessness'. It is about calmly making decisions and accepting risks in a reasonable way, based on a tested strategy.
None of the above or the video is advice to traders.
A lot of news is late and people who create news items or blogs have their own biases, based on the information they have.
The news can be dangerous to trading as it can cause a trader to become apprehensive, doubtful and stay out of trade setups that may be quite sound for entry.
News can be depressing and cause a trader anxiety.
Some very important earthshaking news may be useful e.g. some major monetary policy change in Europe or America. But on the whole, listening to or reading news is fraught with problems.
I've found that I make better decisions when I approach the markets with a kind of fearlessness described by Mark Douglas. The fearless state of mind is not 'recklessness'. It is about calmly making decisions and accepting risks in a reasonable way, based on a tested strategy.
None of the above or the video is advice to traders.
Note
The markets know what's gonna happen before the news and all gurus! This whole situation could get quite ugly or nice for those who are short.
Now the news tells us what's going on. The markets have reacted to loads of things. This is mainly about Trump! LOL. Everything: Amazon and the likes having to pay more tax, DACA, NAFTA, and looking trade war with China.
Brace!! Brace!!
FED balance sheet 42% of GDP @ 2020-01-26. Does money have value anymore? [Different perspective on the virus youtu.be/NjTdvALChwk ]
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