Originally posted at forexfactory on Dec 20, 2010
Quote:Originally Posted by behofHi Folks !I’m wondering if reading some of the imortant daily newspapers like Financial Times, Wall Street Journal etc. does have a major influence in your investment decisions.I’ve read regularly the Financial Times UK edition but recognized that my trading success has nothing to do if I’ve read the newspapers or not.
Reading it was a nice distraction but not more..
What do you think ?
It depends on what are your goals, what are your expectations reading the newspapers/news sources. If a person is operating under the belief that they will place a trade after they finish reading all the news sources, then they will probably be deeply disappointed.
If however, they use the news to give them a better understanding of what is going on in the market, why the market is moving, where the money is flowing, etc then it can potentially can help them place trades in the future.
Most people have access to the same information, market participants and traders, just interpret things differently, sometimes very differently. Some people choose to read the news, other ignore it, others assign a high weight to it, others merely glance over it, yet others spend a lot of time reading and analyzing the same information yet reach very different conclusions about what it means. Others may like to fade the news, others may think it signals trend continuation, others may not give a damn and go back to looking at their moving averages. There are just so many possibilities…
At the end of the day it is about what is going to generate order flow, massive order flow.