Thursday, May 19, 2016

don't bother about the news

imo, technical traders should be purists.

they shouldn't bother about fundamentals or news.

any news or development that doesn't go with the trend/contour predicted by advance technical analyses is likely to be dampened and nullified thus giving chance to the technical and tactical trader another (artificial) opportunity to trade to profit.

an eye on a forthcoming news is the max a purist trechnical trader should keep. that's all.

predicting which way the event unfurls is not that important (it is anyway impossible to predict the outcome except with insider's information). what's actually important is having a tactical trade setup (with a plan to profit from whichever way the market moves after or during the event).

how many times have we seen market go big up and then big down after the completion of the event such as end of budget speech or fed/rbi rate cut or increase?

prices are sniffer dogs of fundamental masters.....they have the insider information of the approaching fundamentals.

any "disturbing" news or fundamental doesn't survive for long. operators can't stop news, but they can more than absorb them.....worse, they use them

events are known beforehand to the powers which are.

and the shadow of their intentions are clear on the charts/indicators/signs. any drama courtesy event/news (foreseen/unforeseen) is not much different from crocodile tears.

gulp it all with a pinch of salt.

and don't forget to say "thank you". good traders should be masters of mannerisms and etiquette, especially when in profit.