Tweet *****Never assume that you know which way the markets will go is a good motto for daily (day) traders. The only safe bet about markets going up is for the long time investor, but they too can be fooled out of that conviction if they enter at the highs of the market, and cannot tolerate the downside from there.
So, no matter what type of trader you are, it is best to know what the news is saying in order to somewhat foretell which temperature to expect from the financial weather. Winds can blow hot or cold, how you're prepared will guarantee your survival. Nothing else matters if you're ready for both and the financial news is your weather predictor.
That of course does not mean that you have to hang onto each word they say, in fact, I would suggest that you listen only so you can understand the immediate market reaction, which usually reverses as the figures get digested by the market. In order to really know what is going on, read the whole article yourself and see how it relates to the other articles in the news of the day.
Yes, I guess I'm advocating some research of the longer term kind. Your own analysis born out of that research will guarantee that your will not be blown about by the whimsical breezes served up by many who state opinion without fact, or just read the headlines only.
Happy Trading, Living and Dancing
The Daily Pick $DJIA Outlook for Friday 1/4/2013
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