Seems to me...as much as i love them...that CNN, CNBC, BLoomberg and the rest really could my trading judgement. In the past i have read the news 5-10 times per day...half the time it almost gives ma a heart attack! i am thinking about changing that to where i go 100% mechanical to keep any emotion of of it. Keep in mind...i swing trade...no intraday. anyone else just stay away from that stuff?
I do my best to work with blinders on as my trading is 100% mechanical. CNBC has been replaced with my Ipod. In addition I've blocked people on my IM that continued to offer market opinions after I repeatedly asked them to refrain. These moves have really helped my performance.
Poison from the truly clueless that gets into your subconscious and damages your trading. I scan the headlines for what I call "jolt" news in the morning, but really more interested in the overnight price action not some convenient explanation. Alerted to non sceduled "events" by an audio alert set up so that if the 10 Y note or Euro goes out of its 1 minyute ATR by much I am alerted. Usually the 10Y reacts fastest to events as mostly pros who immediately pull bids. I would subscribe to something like need to know if it was in asian hurs but the big issue with realtime written news is that when something hitsit is easy to fall into the trap of waiting for the explanation rather than acting on what you see and worrying about the reason why afterwards. With news you are dammed if you hear it and dammed if you dont.
great idea. are you profitable now? were you profitable before? the problem with giving up the news for me is the entertainment value...
I'm in my third year of trading for myself. 2005 will be a good year, but not as much as I would like (is it ever?). 2004 was just over break even and at the end of the year was when I decided to start blocking out the daily distractions and be 100% mechanical. I was giving myself 2005 of pure system following before throwing in the towel. 2003 was a disaster. Basically I keep progressing and learning more about what style fits me, etc. Doing my best to ignore the news works well for me and I do think has contributed to improving performance.
The important point is that everything on Bloomberg / CNBC is already in the price. Just my opinion. T They may be worth it for entertainment value though.
The important point is that everything on Bloomberg / CNBC is already in the price. Just my opinion. T They may be worth it for entertainment value though. That's how I feel. I mean what are you expecting to get out of the news? Long term or short term moves? If you think it is short term do you honestly think that the funds have not had the news for two days already? Long term, will the news really affect prices over the long term. Secondly, do you actually believe what you see? When the fund manager comes on and says he is loading up, do you think he is going straight from the studio to start buying as soon as he gets into the office? It all comes down to what you expect to get I think
this is the only news service you need for trading...... www.nakednews.com really gets the adrenalin going for the open!!