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How To Trade The News
“All media exists to invest our lives with artificial perceptions and arbitrary values”
Marshall McLuhan, (1911-1998)
by Andrew Hall
Giving credence to the never ending gush of 'Breaking News' stories on mainstream financial news television channels and in the even more belated stories that appear in financial newspapers, is one of the core reasons why so many traders fail. To put it frank, much of what is reported in the mainstream news is misinformed ‘yellow journalism’ not fit for human consumption, and is definitely not of assistance to the serious trader wishing to make profitable trading decisions based on intrinsic market mechanics. The sooner you can accept this point, the quicker you will make your transition to approaching your trading in a whole-brained manner; consistently focusing on the pokerfaced realities of Order Flow and ignoring what misinformed manipulated reporters are telling you. News is often dressed up in an emotional way. This is the very last thing you want when trading.
The problem is that a journalist cannot tell you the whole truth and never will. The first reason for this is that most news reporters are entirely out of the loop and hopelessly have no factual inkling as to the profiteering manoeuvres disseminated by Smart Money syndicates. The second reason is that most journalism is ‘yellow journalism’ rather than investigative journalism. With the advent of social networking, these traditional news outlets are competing for exclusivity, not only against their established peers in the traditional media industry, but also against the fringe, agile and tech savvy ‘citizen journalists’ who can use the likes of Google+, Twitter and YouTube to instantly break news to the online masses. Thus, anxious Churnalists are frequently fed with incorrect PR (often deliberately) which they unwittingly report verbatim as factual live "BREAKING NEWS", hurriedly as soon as it arrives over the wire; without the due diligence necessary to verify authenticity.
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