I don't know how you could say news is not important! I am not saying its the only way to trade but either is just charting. Everyone has there own style and that is fine with me but I found that using charts along with news helps an awful lot. I have made nice change off of real time news, Upgrades/Downgrades, merger rumors etc. Just remember charting is good but support and resistance levels are meant to be broken. Happy trading to all, lets take money from this market. Plenty of opportunities
I recommend reading the news mostly because there's great stories and interesting people being profiled all the time! But, generally, I still rely heavily on my friends for my news. There are just SO many nifty craft projects that can be done using newspapers too! Stay tuned... Marth@
Short answer: no. Resoundingly so. And this is even truer for index futures. News as a driver of the market can be written off .. although its a huge filler of the financial media and the minds of many traders. I wouldn't want the world to be other than distracted with the pimples and outer decorative appearances of the markets. Of course there are a handful or less of economic news items, usually at 10am if they are occurring on a particular day, of which one should definitely be aware. But my system shows that the market goes in its particular forecast direction or pattern even when pimpled up or down by the news item or the run-up to that news item.
But here's some advice that someone passed along to me. If you're a newbie, even though the THRILL of trading the news (fast pace, high excitement) is fun, sit on the sidelines and take notes. I learned this the hard way. I let the best of my emotions get in the way of me making sound trading decisions. I was simply caught up in the action. Yes, I blew it. Yes, I was a dumbass. If you were sitting here watching me trade, you probably would have hit me upside the head with a 2x4. There's always plenty of news, just sit and watch. See how the "big guys" interpret it. Eventually, ya catch on. I'm still in that 'watching' phase now, and yes, sometimes i do put my blasted hands back on the keyboard when i'm not supposed to, and 50% of the time, my hand gets slapped by the market. have fun
fooling yourself into thinking how a news release is going to move the market is a joke.....trade the chart, let the reason wait.... ...there is no 'catching on' in trading....the best trades out there look wrong at first! find an edge and execute it. think of news and price action as a smoke screen, cause that is EXACTLY what it is!!!!
Generally I have found this to be true (with possible exception of major economic reports). Otherwise, often VERY hard to interpret. Then, by the time you do, it's too late.