Quote:
Originally Posted by lovejoy80
Did you know Lehman Brothers went into Bankruptcy? 
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Now
that made me laugh. Thanks for that lovejoy, I'm still smiling.
I don't really care too much about news unless I am trading a very fast timeframe in which case my news involvement boils down to "stay away from the red calendar announcements on FF". In 1H trading and up, I completely ignore it and stay away from putting a position on in the hours before NFP. And that's pretty much it.
The way I see it, there are people smarter than me with access to much more information than me, and they are in charge of big money. When they move that big money they leave footprints on the chart. My job is to read those footprints. If I try and read the news and formulate a trading plan then, well I've never seen chart moves "make sense" according to the news. In fact when I see traders in other threads on FF trying to join the dots on world analysis to create a plan for how price will move it just sounds a little....naive. I think the best retail fundamental trader I ever saw was merlin and he could stitch things together in a way that was beyond me. Price action is simpler.
I posted on PF just now that this piece of news will affect me in one way: given that it's huge and it hit friday afternoon, it might make me close out a trade I was holding onto tonight, rather than sticking with it over the weekend. Of course that all depends on timeframe. If I was in a daily position then I'd be hanging on. But if I was in the 4H BUOB on UCAD then I'd probably look to take profit and not have to sweat over a potential gap.
The irony is, I devour financial books and fun stuff about Wall St and the economy. I love that stuff. I just don't base any trading decisions off it.
Oh, and I get those questions all the time Mike. My other favourite is "where do you think the euro is headed?" or "what's going to happen to the pound". I always tell them "dude you're asking the wrong guy. I have no idea" and they look at me like I'm crazy...lol.