I have been day trading since 2000 and during this time have encountered a lot of big headlines which tend to grip the market, such as, the bombings in London, 9/11, Middle East Wars, Spain, Greece and the current gridlock in DC.
It took me a few years, but I have now learned how to discount the noise and trade through it.
In an environment of pressing overhead noise which rattles the crowd you will get a choppy and sloppy broader market. This tends to turn the indexes and futures traders into a meat grinder action. To me personally as an equities trader I find that it makes my job a lot easier because I am able to spot a stock in play when the markets are in a gridlocked choppy pattern.
The following is a list of traits that describe a stock in play:
• It has a news event.
• It has above average daily volume.
• It has an expanded daily trading range.
Trading stocks driven by news or an event that gives them their own separate energy will give you an enormous edge in avoiding the daily, choppy, grinding action of the confused, broader market.
