One quite common question I get asked in trading over the years is that do I factor in aspects such as news or media into my trading. This is such a common question by traders as many traders feel that this maybe something they are missing as a part of bigger picture of trading. In this post I will lay out the best answer to this question, plus I will also go over the reasoning of why as a trader you do not need to focus on factors such as news or media.
Firstly, in answer to that common question:
I Trade What I See..
So now you maybe wondering what exactly do I mean by this, well I mean that I pull up the charts and I look at the processes on the chart and that signifies to me what the other big traders that can move the market out there are most likely doing. I do not care in any way what the media says or fundamentals, if a market is in a uptrend I will trade that uptrend, if the market is in a downtrend I will trade that downtrend and if the market is lining up at a important counter trend zone then I will look at opportunities there as well. You see, like I have said in many of my videos such as the Weekly Reviews in the past, is the market is always telling us as traders a story depending on which way it is trending or where next major structure is or what the candlesticks are saying or what the other confluences on the chart are saying.
These influences which can be seen on the chart give us the ability to Trade what you see…
Now, do not get me wrong, as a trader there are certain aspects we need to bare in mind like how trends move ( trend training ) or how to assess candlesticks properly, however one aspect is for sure and that is that you do not need any fancy indicator or news or media to tell you what to do or how to think.
A Chart Tells a Trader A Lot of Information
This once again brings me back to the point on charting once again and what a chart really is, some traders get confused by this one, a chart signifies what all market participants are doing, who is taking losses, who is taking profits, greed, emotions, everything on there signifies how the the market is really moving and the best part is, wait for it, the best part is the chart does not lie with what it has recently done. A chart cannot lie, as an example when a chart is in a uptrend pattern and it has been following the uptrend pattern long term or just like a chart cannot lie when it has been in a down trend a long time either. These are all patterns a trader can learn to see clearly on the chart and are also patterns that no trader can argue with either.
Overall there is so much a chart can tell you about a market, does it matter if news is negative about a pair and the market keeps rising higher, does it matter if there is positive news and the market keeps rising either? When you think about all these aspects one should come to the same conclusion every time and that conclusion should be the chart tells the story of how the market is moving whether influenced by any external events.
*In other words, even if news does move the market to some degree the chart itself will indicate how the market participants are reacting to that event.
Now it sounds a little like I am repeating myself here I know and there is good reasoning behind that. The reason being is that many traders fall into the trap of being effected by these influences and unfortunately thinking that they need to be aware of every single news event that comes up and it is simply not true. Instead you should avoid trading around big news or wait until the news reaction has subsided and then you can go back to trading as usual.
When the Market Changes
Let me give another insight example for you and this example relates to trend evidence trading and reading the charts as well. When the market changes trend, what do you want to do, do you look for a reason to keep trading the previous trend and hope the trend evidence is wrong and ignore what the charts are saying or do you adapt and change with that trend? This is an important aspect that defines most traders long term in this business and also is a part that I have seen numerous traders struggle with over the years of me teaching trading as a skill as well. Once again with this one, the chart clearly defines once taught when a trend most likely ( High Probability ) is changing so once again it comes back to trading what you see on the charts.
Learning to Trade What You See on the Chart..
Now, I know to some traders out there you maybe unclear on how exactly candlestick price action works overall, how trends work, how major structure works or how risk to reward concepts work. You may also think you know, but are still yet to be profitable. One of the key aspects that is taught here at Forex Reviews is just that, looking at the charts, looking at those key market dynamics factors such as structure, trend, price action and higher time frame influences. For more information on the training available here at Forex Reviews click here.
One of the aspects Forex Reviews prides itself on is not only providing great high quality training available online but also training that is also affordable to anyone as well.