Shield Trading Plans From Uncertain News
2020-05-19 | Simpler Trading Team
One of the main focuses at Simpler Trading is to get traders to understand the importance of eliminating emotional responses to the markets and the news.
Any news — good or bad — can change market direction in a flurry within the current volatile market cycle. And the shift doesn’t always make sense, for example, when recent positive news about economies reopening was released and the markets took a nosedive.
Analysts will try to figure out this volatility dynamic over the next few decades.
This daily state of heightened uncertainty can test the mental mettle of any trader.
It’s tough to maintain emotional composure when any off-the-cuff comment by government officials or a letdown in coronavirus vaccine development can twist the market against rational analysis.
Avoiding the news and focusing on chart patterns, proven strategies, and potential trade setups helps maintain focus and eliminate FOMO (Fear Of Missing Out).
Markets at times have traded on hype from news that can’t be anticipated. Letting this hype settle on its own without participating in the mayhem is better in the long run.
Stop “hoping” and remove any emotion when assessing trade possibilities. Trade what the market presents and continue forward.
If the volatile market is at times too much, traders can sit on the sidelines with cash in the account.
A trade is just a click away if things settle down more to your liking.
We Saw: Tuesday tanking with Dow dropping almost 400 points—
- Feds, investors contradicting each other on recovery
- Trading still leaning bullish through the week
- President Trump eyes punishing Chinese stocks
We’re Watching: … with cautious eyes toward the bullish bent —
- In anticipation for opening move tomorrow
- Restaurants, retail in recovery phase
- Back at it: TSLA, NFLX, BYND, AMZN
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