Technical traders don't trade the news, why not? known as neutered traders or neutral traders --no balls. Direcdtional traders man, if the China deal is not approved and China trade delegates tells Trump the Fuck off and they won't give into his demands of China being more open to US investment or US access to their financial industry or other demands like China want accesss to software code that it buys or not rely on US to repair equipment if they don't know how the technology works in buying US technology etc. As for the demands by US and Trump they are too aggressive, and asking the China communist to submit or change their economy to total capitalism..well hardcore communist in the party aint down with BS or selling out to Americans okay. and they could be shot or killed for treason if they sign the 'bad deal' that is China. okay China is being forced to sign this deal okay. or the Trump and corporate racket will destroy China economy and cause a lot of problems in China and the communist party as the economy worsens and you see riots like in Hong Kong. all about making profit. okay. and the market may not crash even no deal, dragging this negotiation for a year, is a bad meaning they don't agree no deal. but both sides want a deal.. China wants a deal but won't give into US UNREASONABLE demands. like asking China to change politically and asking them to privatize gov't owned companies that is BS. man.
His opinion though lol. I'm a technical trader and do not trade the news and I'm fine keeping investors account safe rather than try to trade the news and get hit by spikes to stop loss, and market goes in your direction after that. It's better to be safe than sorry. 5 years track records without trading the news is a big one.
trade the news yes, but it's a little deeper than 'trade the news'... you have to look at the whole picture - - how has the price reacted in the past to similar news... e.g. every time a trade talk breaks down, were the price shocks getting weaker? stronger? or the same? - what was the over all trend thru similar events... e.g. what the SP did since the trade war started; it's at least 2 dimentional chess, maybe even 3.... definitely not 1 dimention.
Last time I tried to trade news was on Thursday - when in the very early european morning hours (why here?) news came out that stated, that trump has said they are very close to a trade agreement. When I looked at the 1 min chart, it had a big spike already, two minutes ago... Although I was immediately informed on Bloomberg TV, I was too late. So: you must have a very fast squawk box provider, before you can actually trade the news Ransquawk costs 300$ a month I think...
I've had beginners luck trading the news in single stocks. Dear dest saw my Netflix post and doubled down or something. I think playing the news is valid and there is a way to do is somewhat systematically if you come at it from the point of dozus big boys.
that's the 1-dimentional chess I was talking about.... retail can't compete there... but the 2nd/3rd dimention chess you have plenty time to react... it's about logic, not hardware race.... so in the above example... if previous negative tweets have resulted market drops only to be followed by higher highs, then your 2nd dimentional chess move would have been buying the drop resulted from previous bad news anyway, instead of having to rush in on a good tweet. once you follow how the big boys unfold stuff a couple times... it's not that difficult to get to the logical conclusion... it's valid because - just imagine you have enough account size to move the market (only when the market is vulnerable), and you also control the media... what would you do.
I'd front run the market, and take the time those retailers needed to catch up with me to learn how to spell dimension. A double win!!! ...and where should we move the market to? Pittsburgh? Albuquerque?
I think he's saying that if you can manipulate both the news and the market in the short term what would you do? You'd manipulate both. I think you can systematically play this assumption.