A Common Mistake Traders Make When Day Trading

A Common Mistake Traders Make When Day Trading

Day Trading: Learning to Ignore the News

Anyone who watches daytime television is well aware of several news networks that broadcast nonstop financial news. Generally speaking, these networks parade a variety of experts in front of the camera who spout all sorts of interesting and apparently insightful information about market conditions during the day. Early in my career, many years ago, I faithfully listened to all the rumors and innuendo the financial news network’s reported. At some point in my career, I learned to turn the television off and simply trade the chart in front of me.

This is not to say that day traders should not be aware of the daily economic announcements the government and government subsidiaries publish. These are very important announcements and should warrant your attention. However, the never-ending stream of talking heads that grace your television screen are not worthy of your attention. Often times they spread information that is unsubstantiated and rumor, which can affect your trading strategy and trading timing in an adverse way. Let’s face it, the really successful traders do not appear on television and divulge their trades for the rest of the world to duplicate.

A Common Mistake Traders Make When Day Trading

Aside from the misinformation, there is an even more important dynamic to consider when watching the Financial News Networks. The announcers and individuals being interviewed can have a decided effect upon your psychological outlook on the market movement during the days session. It is important to keep a tight rein on your emotions when trading, as an outside stimulus, like spurious news reporting, can often cause your trading to become biased. This bias can have very unfortunate and costly ramifications and you’re trading. For that reason alone, I generally listen to music while I trade. In short, I make an earnest attempt to avoid any …

The Importance of News for Forex

The Importance of News for Forex

Anyone who has a cursory interest in Forex will know that they must depend on any and all news to understand what is happening in the market. This is something that is important and necessary, more than breathing for anyone. The only reason every trader has to invest in a certain currency is because they know what is happening in the country. That would only be a crazy person who would spend their money only on rumors!

It is wise for novice traders to remember that it is not only financial news from new market possibilities that must be learned. Everything is interrelated, so social and political news, apart from editorial opinion must also be absorbed. It is a well-known fact that what is known on the international scene is a very runny version of what happens at home, sometimes even completely wrong. The only way to measure whether a currency is worth trading is to read the “local” news itself.

The prize that is owned by a good Forex trader is the ability to filter and filter impurities and find gold information nuggets that will help him make good decisions. This helped him read the trends which were later confirmed in the financial news section.

The Importance of News for Forex

It is a frightening thought that one wrong decision can actually bankrupt a trader or even a brokerage company in a blink of an eye. That’s why experienced traders pay attention not only to current exchange rates (which fluctuate wildly throughout the day) but also to other activities that appear to be unrelated in the stock market and the ongoing bond and treasury rates. Put together, it will make possible predictions about how the currency itself will react over several trading days.

If trade is not carried out in local currency, one good source …