The Perfect Trader Trades with an Objective Mind

Submitted by Marco on Sat, 10/06/2006 - 01:39

When you trade, you trade objectively, taking in mind the market consensus from news, fundamental analysis or technical analysis: As a trader, you shouldn't be concerned about market downturns or booms. When you trade, you trade objectively, taking in mind the market consensus from news, fundamental analysis or technical analysis and simply trading that view. You have the choice of trading each style specifically or trading a combination of each technique, taking in the news as well as the fundamental information. Or trade the news and technical analysis or the hybrid of both fundamental and technical analysis.

It depends on your personal style which is intimately linked with what you're comfortable with. Personally I reject fundamental analysis as I believe that everything you need to know about a stock or a currency is locked into the current price of the equity as well as the historical price of the equity. The historical price locks in the trend, support lines and other indicators that all technical traders swear to. Yes, I'm a technical trader.

I found that following news was a waste of time and most of the time that I do listen to the news I find that my trading becomes biased to that news piece. So I'm solely a technical trader. (This comes with exceptions as sometimes I take advantage of trading announcements such as interest rate announcements that lead to wild volatile movements on the currency markets) Yes news can be right - an analyst may predict the right price, hell, they may even have insider information. But the thing is, they aren't always right. And when they're not right in their analysis you can easily blame them for your own trading. And that's what I feel that is wrong with listening to news and other hot tips. When I trade, I want to be responsible for my own trading, without needing to blame any other person with my trading mistakes. I want to know why the trade went bad. And not who gave me the wrong prediction.

On the other hand, if you're lazy and just want to follow the herd like sheep, go seek an analysts help.

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