News events don’t effect my trading!
“The CPI dropped a
record 56 year low,†“Overall decline in energy prices in November, â€Fed Raises
Interest Rates.“
This leads me to a question that I had for many years. What does one do with
anticipated major market news events? This really is a tough question, and I
think that you need to have sorted out the answer to the question in your mind
before you get barraged with this type of news. Personally, I disregard these
news events. They are non-events in terms of my trading. The data that I use to
make my trading decisions was generated without regard to these news events;
thus, I trade without regard to these news events. In contrast, I know several
traders who consistently make money off of trading news events whether it is
major market news such as an FOMC meeting, or stock related news such as
approval of a new drug. But, I don’t use those techniques or strategies for my
trading style. Therefore, although I pay attention to these news events (out of
interest), I don’t let these events change my trading style.
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