Many traders/investors get caught up in the things that happen every day all over the world. It’s called, “News,” but we call it, “Noise.” It’s not that you have to cut yourself off completely from the news, but don’t get all caught up in it. Allow the chart to dictate your actions.
For example, tonight, Sunday, January 26th at 6:30pm central time, the futures are trading lower on flu news from China. I guess you could say, “The Futures are down with the flu.” We don’t get all wrapped up and out of sorts with it, we look at the futures and see they are down a couple hundred points, make a mental note of it and that’s it. Come tomorrow’s open, we’ll see what happens.
Now, you may be saying, “Well, sure… what else are you going to do? Believe it or not, folks, there are traders out there who will sell futures tonight to hedge against long positions all on the crap-shoot that the market will sell off on Monday.
Will it happen? Maybe. Maybe not. We prefer to turn off the noise and sleep easier. Certainly, it’s your choice whether that style fits your personality.
Always – Always – Always conduct your own review before initiating any trades. Never simply take our word for it; not only do mistakes happen, but our risk tolerance may not be the same as yours. Never treat the Key List as a “buy list” or a tip service. We are first and foremost an educational service; please always do your own research and trade with care!
