Discussion in 'Trading' started by jr07, Sep 17, 2009.
This is exactly why people should not trade off of fundamentals. So many people on this planet look at the economy, decide what they THINK it's going to do, and then place a bet in the market based on this.
The thing to remember is that the market always LEADS the economy by 6 months. We bottomed in March, and only now are they starting to feel more confident that things are improving. That's how it always works, which is why looking at economic data for your trading decisions is just about the stupidest thing you can do, because that data was probably already priced in. It's like trying to drive while looking in the rear-view mirror. The article in question shows how stupid that approach can be.... the chart and price action are the ONLY things that you should trust, and NOTHING else.
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