Watching the

This is a discussion on Watching the within the General Trading Chat forums, part of the Reception category; What are the latest headlines? Do they impact the markets? Well, it depends. On Monday, October 17, 2005, there were ...

Reply
 
LinkBack Thread Tools Search this Thread
Old Dec 23, 2010, 7:52pm   #1
 
Joe Ross's Avatar
Joined Nov 2003
Watching the

What are the latest headlines? Do they impact the markets? Well, it depends. On Monday, October 17, 2005, there were some headlines that may have impacted you. GM reached a tentative agreement with the union. What's the impact? It seemed to satisfy long term investors. Company profits are bound to improve with lower labor costs, right? The Supreme Court refused to allow the government to pursue a $280 billion penalty against tobacco companies. That should help their profits. Are you ready to invest? What about oil prices? There was a tropical storm in the Gulf Coast region that threatens to raise the price of light crude oil once again. And the Federal Reserve Board? What will they do next? The economy has been a little uncertain with tropical storms, oil prices, and possibly lower than expected earnings of major companies. Are they going to tighten interest rates? No one knows for sure. If only we had a crystal ball.

In the movie "Broadcast News," the news director tells a newbie anchor, you better prepare. His sarcastic reply, "How do you prepare for tomorrow's news?" As a short-term trader, however, you may aspire to prepare for tomorrow's news. Imagine if you had a magic newspaper, like on the television show, "Early Edition." If you knew the headlines, think of what you could do. On second thought, what could you do? What you really need is the financial section of the magic newspaper. The notion that you could trade the markets more skillfully if you had tomorrow's newspaper the day before is a fallacy. It is based on the erroneous, belief that market participants react to media news in predictable ways, but they don't always do so. Conventional wisdom about how market participants will behave is only a guess. Conventional wisdom is only correct when it happens to be correct, and thus, history in the markets only repeats itself when it does, and that may not be all the time.

It is not useful to view the markets as following natural scientific laws. Market participants don't behave like inanimate objects in the physical world. They are irrational. They allow their perceptions and emotions to guide them. Think about how you allowed today's headlines to influence you. Did you read the headlines? If you didn't read them, then how could they influence your trading decisions? Even if you did read them, what was your interpretation of them? An interpretation of the headlines is subjective. How you interpret a headline depends on your past experience with the markets or whether or not you want to admit that a piece of news actually may impact your trading plan. You may unconsciously decide to deny its existence, and if you did that, then it could not have impacted your trading decisions. In addition, consider the different stories about the markets reported on any given day. How do you weight the information?

Because the markets are made up of people, it's virtually impossible to precisely anticipate what they will do. In the end, you'll have to accept the fact that no information is perfect. But you aren't helpless. The markets may be inherently chaotic and difficult to anticipate, but you can take precautions. First, admit that you don't have perfect knowledge and that you can't perfectly anticipate what the markets will do. All you can do is look at all the available information as completely as possible, and make an educated guess as to what the market will do. Many times, you can, in fact, accurately anticipate the future market action. It's a matter of preparation and taking a risk. That said, the second thing you must do to survive is manage risk. Because the markets are inherently chaotic, you must assume that you will be wrong more times than you would like. There's no point in risking more money than you can afford, losing it, and suffering dire consequences.

No one knows tomorrow's news, but more important, no one knows how market participants will react to the news. Don't make the mistake of thinking that you have special knowledge. Admit your limitations, study the markets thoroughly, make an educated guess, and manage risk so that you'll be protected in the event that you guess wrong. You can't make the market meet your expectations. You have to go where the markets take you.
__________________
Get paid to trade!
and
Trade what you see, not what you think!

---------------------------------
I make these posts for general readership. I do not now nor ever have expected other traders to do what I do. Trading is something that has to be personalized. My hope is that what I post may be helpful to many traders who use the forum. Ultimately, trading has to become your own.
If whatever you are doing works for you, then keep doing it.
Joe Ross is offline Coach/Trainer   Reply With Quote
Old Dec 23, 2010, 9:30pm   #2
Joined Sep 2010
Re: Watching the River Flow

Something is happening, but you don't know what it is. Do you, Mister Jones?
HarryMinot is offline   Reply With Quote
Old Dec 27, 2010, 12:46pm   #3
BSD
 
BSD's Avatar
Joined Feb 2006
Re: Watching the

Joe looks like a big, cuddly teddy bear !





__________________
Markus
Doing without doing
BSD is offline   Reply With Quote
Old Dec 27, 2010, 12:50pm   #4
 
shadowninja's Avatar
Joined Jul 2007
Re: Watching the

I suddenly had a thought. JOE IS ARABIANIGHTS IN THE FUTURE. (Seriously, find a pic of Dave... I have one but I'm not posting without his permission.)

__________________
The markets can stay solvent longer than you can stay irrational.
shadowninja is offline   Reply With Quote
Thanks! The following members like this post: BSD
Old Dec 27, 2010, 12:52pm   #5
BSD
 
BSD's Avatar
Joined Feb 2006
Re: Watching the

I'm sometimes not sure if Joe is a real human or some robot from the future.



Dave is a real human tho I believe.
__________________
Markus
Doing without doing
BSD is offline   Reply With Quote
Old Dec 27, 2010, 12:57pm   #6
 
Lightning McQueen's Avatar
Joined Feb 2004
Re: Watching the

so are we saying that arabia looks like the new younger image of captain birdseye?

Click the image to open in full size.
__________________
Lightning McQueen is offline   Reply With Quote
Thanks! The following members like this post: BSD
Old Dec 27, 2010, 1:02pm   #7
BSD
 
BSD's Avatar
Joined Feb 2006
Re: Watching the



Not into men but not bad I'd say.
__________________
Markus
Doing without doing
BSD is offline   Reply With Quote
Old Dec 27, 2010, 3:26pm   #8
 
Mr. Charts's Avatar
Joined Sep 2001
Re: Watching the

What the
__________________
Mr. Charts
Full time US Share Trader
Follow me on Twitter twitter.com/MrChartsJoyson

Contributor to T2W's Trading FAQ Book
http://www.trade2win.com/books/trading-faqs

T2W interview

http://www.trade2win.com/knowledge/a...ichard-joyson/
Mr. Charts is offline Coach/Trainer   Reply With Quote
Old Dec 27, 2010, 7:30pm   #9
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
timsk's Avatar
Joined Mar 2002
Re: Watching the

I've never met him or seen a picture of him. Even so, based on the legend that surrounds him, I'm pretty confident I could pick him out in an identity parade.
__________________
I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING – Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!
timsk is offline   Reply With Quote
Old Dec 27, 2010, 7:32pm   #10
The Staff are paid members that perform various roles such as editorial, advertising, support or technical work.
 
timsk's Avatar
Joined Mar 2002
Re: Watching the

Arabianights that is, not JR!
__________________
I'm New To T2W - Where Do I Start? - a must read for anyone new to T2W
I'm New To TRADING – Where Do I Start? - a must read for anyone new to TRADING
The Trading Plan Template - a must read for anyone without a proper TRADING PLAN
Please note: I am part of T2W Admin' Staff - I am NOT a Moderator!
timsk is offline   Reply With Quote
Old Dec 27, 2010, 8:05pm   #11
 
shadowninja's Avatar
Joined Jul 2007
Re: Watching the

He'll be the one carrying a big knife.
__________________
The markets can stay solvent longer than you can stay irrational.
shadowninja is offline   Reply With Quote
Old Dec 27, 2010, 11:58pm   #12
Joined Aug 2010
Re: Watching the

Am I the only one who is p1ssed off with the way you immature f***ers always ruin Joe's threads?

Some of us are interested in learning about fish fingers you know.
FX Bandit is offline   Reply With Quote
Old Dec 28, 2010, 8:38am   #13
BSD
 
BSD's Avatar
Joined Feb 2006
Re: Watching the

Quote:
Originally Posted by Mr. Charts View Post
What the
Ah heck it's just some strong guys sharing a homoerotic moment.

__________________
Markus
Doing without doing
BSD is offline   Reply With Quote
Old Dec 28, 2010, 5:59pm   #14
 
2 Posts
Joined Dec 2010
Re: Watching the

Hola Joe!

Can El Cabron plees borrow choo boat? Me no want to fish, me chost need to make a leetle sheepment.

I weel pay you well, hombre, and then you can afford a razor. Ees a goood deal, verdad hermano?
El CABRON is offline Hardware vendor   Reply With Quote
Old Dec 30, 2010, 6:57pm   #15
Joined Jan 2009
Re: Watching the

Who is El Cabron (is this a rude Spanish word?) and how was he banned within a few days?
meanreversion is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Similar Threads
Thread Thread Starter Forum Replies Last Post
What are you watching now? dick_dastardly The Foyer 2 Feb 18, 2013 5:10pm
Crosses Worth Watching z482493 Forex 2 Mar 10, 2010 5:07am
Watching the Market Movers purplemonkey General Trading Chat 4 Jun 22, 2009 3:52pm
Watching Me, Watching You ! Guesty T2W Feedback & Announcements 3 Sep 8, 2003 4:43pm
EGS-worth watching.. Riz Stocks 8 Dec 13, 2000 12:04am

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)