Burn Your Newspaper

I never understand why reading the financial newspaper is almost useless in trading… until now.

Journalists and editors of financial newspaper tend to write objectively, but they are more likely to miss many moves.   Why?  Because they are not paid to be wrong.  They are always right.  That’s why they are so useless.  By the time the newspaper print out that there’s a rally, the party have usually already finished.  And then, we’re just starting to place our buys.  Hmm…  not a good move.  Mr. Market may have already run far and get tired.  We may end up, like they say “buy high”.  And it leads to “sell low”.

On the contrary, by the time they say the market is falling, Mr. Market is already in the bottom.

Newspaper is useless in helping us catch a trend or avoid a fall.

So, what it leaves us to?  Give the newspaper a headline scan, then back to the charts.  The charts reflect the prices and volume – the real meat of the market.  So, you should make a really good friend with charts and indicators.