Technical analyst vs. rumors & news

Discussion in 'Trading' started by joe92117, May 17, 2004.

  1. joe92117


    What percentage of your day trading strategy, if any, involves the news? For example, from sources such as: Bloomberg, CNBC,, etc.

    I am relatively new to trading (part time for about 6 months) and I have been pretty successful at quickly placing trades strictly based on how I think the market will react to a story, upgrade/downgrade, earnings, etc.

    I prefer to watch news feeds rather than charts. Can trading on the news be a long-term successful strategy or have I just been lucky? The reason I ask is because I would like to eventually do this full time and I would rather not get too caught up in TA if its not necessary.
  2. Although I believe news analysis can be employed in one's trading approach, as Bernard Baruch stated, "What is important are not the events themselves, but the human reaction to these events", personally I find it actually difficult to know the longer term outcome of such a strategy. The key issue is news effects could not be quantified so as to analyse it's historical performance and debug the parameters involved.

    just my 2 cents
  3. Baruch - not Barauch.

    Yes, old Bernie was right.
  4. Sorry, typo:)

    Edit: typo fixed.
  5. OK. Read the old man's book? Better than Van Tharp and Douglas...
  6. Yes after reading his own story, I actually feel he was an old fox in his time. Concerning the psychological aspect, I prefer this one,

    "This test of our ability to govern ourselves is really threefold. First, it is a test of values, of what things we will give up in order to make other things secure. Second, it is a test of our reasoning powers, of whether we have the wit to think our problems through to an effective solution. Third, it is a test of self discipline, of our ability to stand by our values and see our policies through, whatever the personal cost."
  7. Yes, he was an old fox. A great speculator (and much more). Unlike Livermore (or Gann) he died as a rich man. I think all traders should read his book:
    Bernard M. Baruch: "My Own Story".
  8. the only way you can actually trade an eco. release is if you have a bloomberg terminal or reuters.

    All other news outlets are late.
  9. hcour

    hcour Guest

    If you're having success w/this strategy then maybe you've found your trading niche. There's no reason it can't work consistently, in fact there's a brilliant book on that very subject, entitled:

    "Method in Dealing in Stocks: Reading the Mind of the Market on a Daily Basis" by Joseph H. Kerr Jr.

    Amazon has one used for about $32. It was written early last century and is a very dry read, but probably about the best one on that subject.

  10. What about Bloomberg Radio? (It's free).
    #10     May 17, 2004