Posted 1 year ago
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You hit the nail on the head, Old Tom. Chasing news is often one of the surest ways of losing money in the markets. First of all, the markets often respond to unsubstantiated rumours rather than to confirmed news (and then correct themselves if the rumours prove to be false). Second, the markets may respond to very minute or obscure information which may not be available to all - this is especially true for retail traders. Third, the markets may respond to news that many traders may consider irrelevant. This list can go on and on.
Ultimately, every trader wants to make money in the markets. To this end, we often try to use every single indicator, every single piece of information in order to try to get that perfect trade in. This turns out to be an endless pursuit and leads to more confusion and tension rather than to profits.
The best trading approaches are those that are relatively simple - it is only in these cases that the trader can consistently perform his analysis/study and place his trades timely across sustained periods of trading.