When you write everyday and constantly every day it is sometimes difficult to think in anything other than the immediate, what happened overnight, what’s going to happen today, where is the next move in the Aussie Dollar, S&P 500 or ASX. Hopefully I do a reasonable job of trying to stay in the helicopter to see the battle field rather than getting focussed on one trench in the battle. It’s why I cover so many markets with my morning research and its also why I use charts and technical indicators.
There was a really lame song back in the 70′s by David Gates which went something along the lines of “if a picture paints a thousand words, then why cant I paint you…” and that it the truth of it. Even if you dont want to trade techincally or using the trend following tools that myself and other use the charts at least will always keep you in the helicopter – on any time frame.
Take the US equity market for example – here we have the S&P 500 and even though my rhetoric lately has been that this could be the worst earnings season since 2007 and we should all be careful the persistence of the trend has meant this was a warning not an outright short position.
Just something to note – but also I have have written in this low volatility world if this trend does turn watch out.
So when you are trading it is important to have your views on how things might play out, indeed you’ll also have your political views and you might even feel that the current global set up is wrong and needs a change. That’s alright but make sure you trade the market in front of you and trade your process or your systems.
When it comes to trading rhetoric about political views or guesses on what might happen to the market or economic data releases are indulgences best left for discussions with friends.
Have a great day.
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Please remember these are not recommendations for you to trade these are my views and I have my risk management tools and risk parameters that you do not have access to. Thus, this blog is for information only and does not constitute advice. Neither Greg McKenna nor www.globalfx.com.au has taken your personal circumstances, objectives or financial situation into account. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.