By Rob Colville on July 13, 2017 in
The news can be interesting. It can be useful. But when it comes to trading, all news is bad news. All it really does is make even the calmest and most dedicated trader panic and worry, and as for those who have only just started… it can put an end to what might otherwise have been a successful trading career.
The things with trading news is that it doesn’t really follow the markets. Not in a way that makes it particularly useful – bad news may sell papers or allow for a number of downloads, but it won’t make your trading any better. It will probably make it worse. The markets change so quickly that by the time the news is released, the issue – or the big jump – has probably changed again.
It seems that way, doesn’t it? Hear some bad news on the TV or read it in the paper, and suddenly everyone is buying or selling their shares, causing the market to change and fluctuate crazily. But does it really? Or are traders too busy doing other things and not bothering to see what the news is saying? It’s likely to be the latter – at least for traders who have experience and a good trading chart. Trust your chart and what the news is saying, good, bad, or indifferent, won’t affect your trades at all.
The only thing that really has a big effect on trading prices is the actual buying and selling of stocks and shares. Until that happens, the bad news, good news, boring news, whatever news is just that: news. It’s information. But it doesn’t have to mean anything in particular, which is why the best advice we can give is for traders to stay away from it at all costs.
Some traders don’t use a chart. Instead, they watch or read the news and base their buying and selling decisions on what that says. This is a no-no because it is too vague, too unsure. You will win some and lose some, but there is no guarantee that you will do well. Using a trading chart that has taken time to set up and that gives you an overall profit might be more hard work than listening to the bad news on the stocks and shares network, but in the end it will give you a much better profit.