News are not Charts

When you read most of the mainstream financial media this week, they got more negative on the financial markets. People start talking about a double dip recession,all of a sudden Nouriel Roubini, David  Tice and Peter Schiff are being interviewed again, when almost nobody wanted to know what they had to say before the so-called ‘flash crash’. Instead of a ‘correction’ they now start calling this the return of the bear market.

***

All of the above for me just shows that you cannot make trading decisions based on news events (except for daytrades were your holding period is very short).Most of the time journalists and politicians are just reacting to the market and only rarely does the market have a significant long term reaction to news or statements of a politician.

***

As a person i hope that we find a way to get out of this crisis, regulate the derivatives market and use them in a responsible way. But as a trader i just don’t care. Thinking about all those things is good and necessary,but as a trader you shouldnt base your decisions to buy or sell on your macro opinions, unless your opinions are confirmed by price action.

Advertisements

About Schwarzdaytrades

I am a full time day trader. I like to share my opinion about stocks and the psychology of trading.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s