Usefulness of reading newspapers for trading FX | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Usefulness of On Balance Volume 8 replies

Re-assessing usefulness of a trading system 14 replies

usefulness of indicators and smaller TF's 18 replies

Trading Naked - Reading Candlesticks and other Price Analysis 146 replies

Reading......and reading....... 21 replies

Usefulness of reading newspapers for trading FX

  • #1
  • First Post: Dec 20, 2010 2:03pm Dec 20, 2010 2:03pm
Hi Folks !

I'm wondering if reading some of the imortant daily newspapers like Financial Times, Wall Street Journal etc. does have a major influence in your investment decisions.

I've read regularly the Financial Times UK edition but recognized that my trading success has nothing to do if I've read the newspapers or not.

Reading it was a nice distraction but not more..

What do you think ?

Happy trading

Benhard
  • #2
  • Dec 20, 2010 2:54pm Dec 20, 2010 2:54pm
Quoting behof
Hi Folks !

I'm wondering if reading some of the imortant daily newspapers like Financial Times, Wall Street Journal etc. does have a major influence in your investment decisions.

I've read regularly the Financial Times UK edition but recognized that my trading success has nothing to do if I've read the newspapers or not.

Reading it was a nice distraction but not more..

What do you think ?

Happy trading

Benhard
depends on what you are doing but for me news i utterly pointless. cnbc and bloomberg and the FT should be prized in the amount of pure bollocks spouted by those dolly birds with lips pulled up to their ears that said linzi janice will be mine - no question.

what was i going to say. oh yes.

the ft seems to suit the guys working in the funds whereby they create research notes out of it so for that as i say depends what you are doing. if you are specialised in an industry and trade it all day then yes some worthiness.

for retail day trading none whatsoever.

in my humble gooseberry tart opinion.
  • #3
  • Dec 20, 2010 3:03pm Dec 20, 2010 3:03pm
if you think anything in the newspapers is worth anything more than a chance to see one side of a story then you are in trouble. financial stories, international stories, local stories... are all stories told from one perspective.

if you ever see a story about bin laden captured and killed you will possibly rejoice and feel a small sense of freedom returning, but remember that his family will probably be devastated and see murder, not justice or redemption.

it's all just herding of the sheep...

... herding of the sheep.
Congratulations ScalaFX for coming out of the closet!
  • #4
  • Dec 20, 2010 3:27pm Dec 20, 2010 3:27pm
Quoting behof
Hi Folks !

I'm wondering if reading some of the imortant daily newspapers like Financial Times, Wall Street Journal etc. does have a major influence in your investment decisions.

I've read regularly the Financial Times UK edition but recognized that my trading success has nothing to do if I've read the newspapers or not.

Reading it was a nice distraction but not more..

What do you think ?

Happy trading

Benhard
It depends on what are your goals, what are your expectations reading the newspapers/news sources. If a person is operating under the belief that they will place a trade after they finish reading all the news sources, then they will probably be deeply disappointed.

If however, they use the news to give them a better understanding of what is going on in the market, why the market is moving, where the money is flowing, etc then it can potentially can help them place trades in the future.

Most people have access to the same information, market participants and traders, just interpret things differently, sometimes very differently. Some people choose to read the news, other ignore it, others assign a high weight to it, others merely glance over it, yet others spend a lot of time reading and analyzing the same information yet reach very different conclusions about what it means. Others may like to fade the news, others may think it signals trend continuation, others may not give a damn and go back to looking at their moving averages. There are just so many possibilities...

At the end of the day it is about what is going to generate order flow, massive order flow.
Private message me for a link to my order flow website.
  • #5
  • Dec 20, 2010 4:44pm Dec 20, 2010 4:44pm
Why would you intentionally limit your knowledge and information? Everything contributes to your ability as a trader, whether it's big or small. Even if you don't take trades based on what you read, see or hear, that knowledge gives you background.

A stupid high school kid complains about having to study math because he's not going to be a scientist, then he grows up and either a)he remains stupid; or b)he realizes that it makes him more well-rounded and more respected and more competent, even though he's still not a scientist.

Rob
  • #6
  • Dec 20, 2010 5:03pm Dec 20, 2010 5:03pm
Quoting Rob Mondave
Why would you intentionally limit your knowledge and information? Everything contributes to your ability as a trader, whether it's big or small. Even if you don't take trades based on what you read, see or hear, that knowledge gives you background.

A stupid high school kid complains about having to study math because he's not going to be a scientist, then he grows up and either a)he remains stupid; or b)he realizes that it makes him more well-rounded and more respected and more competent, even though he's still not a scientist.

Rob
because when your sat in front of that screen and youve taken a load of warbling from some dunce on bloomberg saying euro is going up when the chart is screaming sell what are you likely to do in the early days?

chuck it all in the bin.

the stupid high school kid grows up remaining stupid but doesnt know hes stupid. that for me is a better option.
  • #7
  • Dec 20, 2010 6:13pm Dec 20, 2010 6:13pm
Hi Folks !

Thanks for contributing ;-))

It's an interesting read......
I mainly have read the FT to get a smell of what's going on in the world and
then comparing it with my traders mind ;-))

It mostly helped me to make the right decision ;-))

Who could have guessed...

Carry on with your comments....
  • #8
  • Dec 20, 2010 6:47pm Dec 20, 2010 6:47pm
I read the WSJ daily. Purely for overall market, business, and world information.

I can't use anything that I read in WSJ because by the time its come out on print, if considered old news. When I read the newspaper, I'm not nessasarily looking for currency related articles, but many different articles about whats going on the world.

I have also have a WSJ.com account that I read many times of a day in addition to a Dow Jones news feed that cost me $1,000 a month. I also subscribe to Thompson Reuters news feed that cost me $1,200 a month. I pay to stay informed about the global economy.

Also I also subscribe to WSJ Weekend and New York Times Weekend editions. I like the light, playful articles and staying in the know about the Arts, Weekend Adventures, Shopping, etc. I prefer the weekend editions as its more 'lifestyle' related articles. I get burnout with reading global market related news day after day.
  • #9
  • Dec 20, 2010 7:12pm Dec 20, 2010 7:12pm
Just when traders stop reading the news, robots are starting

http://av.r.ftdata.co.uk/files/2010/01/robot.jpg

http://ftalphaville.ft.com/blog/2010...ding-machines/
  • #10
  • Dec 21, 2010 7:01am Dec 21, 2010 7:01am
For trading purposes people that write newspapers articles on trading, market etc. aren't traders, at least not successful ones.
You have nothing to gain reading them except to see the other side of the picture.
Since we were all once on that side (or still are )......
  • #11
  • Last Post: Dec 21, 2010 6:48pm Dec 21, 2010 6:48pm
Another interesting article today about the matter:
http://www.nytimes.com/2010/12/22/te...ding.html?_r=1
0 traders viewing now