Article Market ‘Noise’: How Seasoned Traders Learn to Ignore It

T2W Bot

Staff member
1,454 54
For many years I was a futures market reporter with the FWN wire service (now called OsterDowJones). I spent time working right on the futures trading floors in Chicago and New York. Most of the time my daily reporting "beat" involved interviewing traders and analysts and then writing three daily market reports. For months at a time I would cover the same markets, day in and day out. It was a fantastic learning experience and an opportunity that very few get.
One thing I eventually discovered from covering the same markets day after day, month after month, was that the vast majority of the time the vast majority of the markets’ overall fundamental and technical situations did not change on a day-to-day basis. Yet, as a market reporter I was conditioned to write about why the market went up one day and why the market went down the next day, and so on. Even though a market may have been in a very narrow trading range for days or weeks, I had to ask the traders and analysts every day...
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Mr. Charts

Legendary member
7,364 1,181
There are three types of noise.
a) Insignificant price scatter within a range.
b) The rise and fall of noise from a pit.
c) The ebb and flow of trading between different price levels.

b) and c) are significant
Richard
 

User

Experienced member
1,170 23
I think it has to be said that if your a long term trader who looks at market fundamentals and/or technical information then the day to day activity of the markets tend to be nothing more then utter nonsense.

However if your a day trader well then its a different ball game all together. I am a long term trader and I find that the intraday noise of the markets is just too much bother and not enough gains. Long term traders can definitely gather a more concise analysis on market direction.
 

fxmarkets

Established member
834 50
hmmm, my first response was rubbed, what I said was should of been called "noise, seasoned traders ignore it" maybe, until it arrives at shouting levels.

point being, very skant detail on "how" and "learn" unless its purely ignore gossip...
 
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blackcab

Established member
523 51
The article is more about how the media works than the markets imho, and it's good to hear someone who was in the media admit that the absolute need to fill space is the only reason for the spurious guff and drivel you hear dressed up as analysis of price movements.
 

fxmarkets

Established member
834 50
yes agree, cabbie..... i was going to comment further the other day, quite frankly I was shocked but not at the same time........ they havent a bloody clue as to why prices move in a day session , however I think you can pay a sum to be fully enlightened.
 

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