Question:
I want to trade the hot news. What’s the best news source?
Jan from Thrillville
Answer:
Jan, I love your question. It opens a fun door for me to explore two facets of trading.
Trading is gambling, traders gamble, and some traders are successful at taking real big risks—the bigger the risk, the greater the reward. These successful traders are masters of both the craft and art of trading, and the art of trading is the “fun zone” of trading. You see, the fun zone is filled with thrills, and winning is the goal, the same goal all traders have, but putting together a winning roll is the biggest thrill a winning gambler can feel. Your question, my friend, tells me you are a gambler seeking thrills. The question is: are you successful? You might very well be if you have mastered intuition (betting your “feel”), timing (entry and exit), and the reality of turning it over to the universe—trading on guts. These are the hallmarks of the successful high-risk-take trader.
Then again, you might just be another so-called trader looking to avoid the work of trading, hoping to cash in on “hot” news. This is gambling, but it is not the way of the successful gambler. This way is hit or miss, red or black, a toss of the coin. Is this you?
For my money, news is contextually important, but it is not the goal. I collect news to understand the market flow, to confirm potential trades, and to alert me to any “bad days a comin’.” Yes, I am a gambler, but I always want the biggest edge I can find. I don’t like the coin flip, a bet on red or black. Hit or miss is not enough. Winning is more important than winning with a thrill. I’m your basic blue collar, 9-5 trader. I punch in, do my job, and then call it a day, no matter how it went.
I have tremendous respect for the analysts who analyze, the traders who practice punditry, and the newscasters who simply give me the straight-up news. In my experience, the first two players in this group are often hit or miss. The straight-up news, conversely, is part of my edge. In other words, until you have the ability to discern the strong from the weak in information from “credible” sources, stick with the straight up news. Yahoo Finance, Bloomberg News, Forbes, CNBC (Squawk Box Europe and Fast money), and a host of others give the news with little flair or drama, although they all sport analysts and pundits, as well as solid newscasters.
Occasionally, I throw some money down on red or black for the thrill (and potential return), but it is never capital I cannot afford to lose. My advice? Follow my lead or master the art of trading. You choose.
Trade in the day; invest in your life …
