I was trading the ES today and tried shorting on the dips but the market would rally back--I lost, but could have lost a lot more if I didn't get out pretty quickly. If I had the news going, I probably would have heard that Iraq agree to U2 over flights, and would have had more confidence in the rally. Do you listen to the news while trading and if so, which programs do you prefer? Thanks.
Listening and/or watching the news is a critical aspect of my own trading. However, your source for such news needs to be fast in alerting it's listeners...or it's just noise. Also, breaking news such as key economic report numbers releases, world news and any other type of news...are all grouped in that news category. I know a trader that's always negative about watching or listening to news. He refuses to watch any financial networks (turns off the TV) and refuses to listen to any news radio. Yet, I've watched so many times this same trader along with others like him...be on the wrong side of a trade when a news event hits the market to only see him say...is there news? or ask..."anybody knows what caused the drop or pop?. I remember once I was in a Short position with a +2.5 point profit per contract and was considering covering because it had just reached my profit-target... when I heard about a plane crashing into a building in Italy (or something like that) on a European networks...I decided to cover all but 1 contract to see if the news will cause a drop in the Eminis... it did and I made several more points on that remaining contract. My point is this...some traders attempt to trade the news...that is...they attempt to enter new positions after hearing the news...such I don't recommend. Other traders listen to the news only while in a position (position entered prior to the news) just in case breaking news hits the markets... and they will have a chance to decide if to stay in the position or exit. Some traders do both and as I mentioned before...others don't listen nor watch because they think it interfers with their trading. Yep...the news on IRAQ just prior to mid-day est having moved towards full compliance with U.N. Resolution 1441 by "unconditionally" accepting U-2 flights over its country... was a barn burner. Once again...lots of traders in the chat rooms (that don't listen to news) were left behind because they exited Long positions too soon... or even worst...they tried Shorting the initial news pop not knowing what had caused it. Note: That pop developed into a very nice Spike and Ledge pattern...be extremely careful about attempting to Short the dips in such patterns. NihabaAshi
Nihaba, Are there any news sources that you particularly like? Thanks agian--and for pointing out the chart pattern.
I watch CNBC. Many other traders I know do it too. I don't pay too much attection to the news though, unless it's really big. This TV program is also broadcasted on satellite radio.
I keep it on mute until I see something I need to know. Like news. Or when I see a face that might say something important. Greenspan, Bush, Cashin, etc. Or people who are on the "floor"......those commentaries give me some good insight into market sentiment.
I listen only for things to catch me off guard and go against any positions I currently have. Otherwise, the commentators drive me nuts with their "insight". The only useful people I listen to are traders on the floor (but by the tiime they are interviewed it is old news) or technicians...
Only for breaking news. I have CNBC in the background all the time, but don't listen to it much. The markets will obviously move before the info is on the screen, but I like to know what caused a move sometimes to estimate its "staying power". I may join a move if some major shit has hit the fan somewhere. I may fade the move if its a rumor or just not that important in my view. Jay
CnnFn is also great. In fact, they offer better intramarket analysis on a daily basis, and don't rely so heavily on the CNBC "personality format" basis. Frankly, I get tired of all that staged "personality" new anchor stuff, in favor of commentary on why the market just spiked 50 points up/down. CNBC takes far longer to offer commentary on daily trading news and patterns, and then its just a quip instead of a segment of 5min-10mins like it is on CNNfN. Oh, "this commentator does not own, influence or recommend CNNFN stock, nor does he or his clients have holdings in CNNFN".
Well, I was long from 824 and had almost closed it out for a scratch when it started to tick higher. I stayed till 831 thinking I had done good, just then I see a post in chat (mytrack) about U2 flights. I probably would have tried to stay with it a while longer had I known. I thought its was just dead cat bounce from all the recent selling. I almost always mute cnbc after about 10:00. I have Comtex, Rueters, PR and few others.