I have an open microphone policy in my trading room, which allows members of the trading room to communicate with me during cash trading. It is not unusual to talk to a member of parliament and hear a financial network boom in the background. I believe that trading while listening to financial news can be very harmful to your trading success. These networks usually entice individuals to assess current market conditions and make predictions about various aspects of trading and investing.
But there is a clear problem with obtaining trade information from a network. They all have an agenda that you may or may not supplement with your trade. In addition to having an agenda that is usually based on the political ties that the network has, many of these guys only speculate about possible results of daily market activity. What's the benefit?
To be a profitable trader, it is essential that you make your own chart analysis and start transactions based on that analysis. In the short term, only graph analysis is an acceptable method for trading, along with a dash of real-time indicators. There is no doubt that a & # 39; talking head & # 39; can predict a price movement in the short term on television.
Today was a good example of why your analysis is much more valuable than the brains of network trading trust. I often listen to one or more financial networks before trading starts because I am interested in the equity issues that affect the NASDAQ. There was a general consensus among this morning's panelists that the NQ would reach a new high in the morning session.
Guess? The morning NQ promotion was on the downside, not on the top. The market did not make the slightest attempt to recover, but remained in a humiliating follow-up channel and spent much of the time testing new lows. So much for the television prediction. It is usually only generic speculation that often coincides with equity issues in the speaker portfolio. Even worse, there is a good chance that it can be simple speculation about what could to happen.
Another good example of incorrect information that these & # 39; talking headlines & # 39; are pre-market projections based on the direction of the next futures. In my experience, because futures prices are down at night, this only indicates a slight correlation with what the cash session traders have planned for the day. So hear next year, "the nocturnal futures price campaign indicates the market will go down", you can generally discard the information as foolishness. The night traders and the cash session traders are two different groups and often have different goals and motivations.
In summary, I listen to music or just enjoy the silence while I exchange and advice from "experts" can make you (or I) have a directional preference. A day on which you are biased with doubtful distinction is the recipe for disaster. Do yourself a favor and get rid of the & # 39; experts & # 39; and make your own trade decisions based on what you see developing in the graph.