Rational Objectivity in Trading

Often times news emanating from the financial media can be defined as to what issues are well worth reporting when it comes to stocks. Investors turned traders need to know how to read financial media reporting by being rational in analyzing whether such reports would have a significant effect on these prices.

More importantly, how to cut through these news by filtering out what is real or simply being hype for these stocks to make it more attractive for investors. By objectively identifying the potential effects or probable market reaction is something to watch for. The expected price action could either be positive or contrary to the expected price direction of the reports. This is where investors particularly main street retail traders would have to contend themselves with what is available with the right media where most traders monitor may consider & deem to be from reliable sources.
 
At this point, investors & traders alike may opt to use 'Trend-following Strategies' that can filter market price misdirection from certain news / reports based on the 'Price Action Analysis'. Including how the market's behavioral pattern, whenever identified, affects the overall trend direction specially in the near term outlook and indeed a matter of market perspective. As most investors protect and grow their capital the way they see fit, traders more often make necessary adjustments depending on the immediate effects on these news particularly when it is detrimental to their trade position.

Others may simply elect to weather the storm for as long that they have other strategies accessible for them to use in the event of a dramatic net change in their bottom line. When there are only a couple of limited alternatives in trading like the PH Stock markets; with such strategy, either 'Cost Averaging' a position and/or simply 'Cutting losses' ... profit-taking is a given! It would advisable for investors to find other equally important alternatives to trade and invest in. There are certain strategies which can be applied to meet the goals and financial objectives when investors can trade the global markets with access to other alternative market options.

Alexander
info@megatrade101.com