So many "credit crisis" headlines are slapping me these days, frankly, my cheeks hurt. I can usually handle a barrage of news, or the over-reporting of a story, if the conclusion is the same. Because I can ignore the retro-rehashing of the same story because I know how it ends.
But the Credit Crisis remains on the front page of all news agencies these days, but the headlines are never consistent. Today, for instance, I brought up Bloomberg.com.. Here are the first four headlines I saw:
"Stocks in U.S. Climb as Oil-Price Drop Helps Retailers; Wal-Mart Advances"
"Money Markets Signal Worst of Credit Crisis Is Over as TED Spread Narrows"
"HSBC Sets Aside $3.2 Billion for Bad Loans, Says First-Quarter Profit Rose "
"Dollar Bulls Gain Control as Futures Signal High-Flying Euro Close to Peak"
Then, I go to CNNMoney.com, and I see these headlines:
"Get ready for more bank failures"
"America's Money: Gas crunch hits home"
"Stuck in an unwanted house"
"Foreclosures: The fight over the fix"
"Barely surviving on credit cards"
What to make of all this as a trader? Is the Credit Crisis really over? Should you fret about it? Will it affect your ability to profit in the forex?
Amazing, that two news organizations can have such different homepage slants on the same economy. But it raises some questions and illustrates a point I want to make.
The CEO of a public company once told me "Don't trust news you get from reporters who make $45K a year." While that may be a little short-sighted, there's something to be taken from that.
Here's my advice: Don't get bogged down by the daily news delivered by economic sites. Read it, and stay informed, but don't spend time trying to apply it to your trading that day. Think longer-term and have a more macro view. News is always reported after the fact, and it's usually slanted in some way.
Once you've developed your trading strategies, stick to the fundamantals you know, and follow your technical analysis. Don't ever try to trade the news. Certainly, you should read it, but with a wary eye. The daily rags can give you a barometer for economic conditions, but it can also slant you faster than you think. Just see Bloomberg.com and CNNMoney.com this morning if you need proof.
As for the Credit Crisis: Can the crisis really be over when the banks are still writing down losses and people are still losing their homes? That's like saying the basketball game is over because you've finalized your game plan. It still has to play out. The banks have figured out their models for handling the crisis, but it's not over.
For a weekly and daily overview of each pair, including charts, videos and data, check out our free pair dashboards:
http://www.pfxglobal.com/free-online...als-forum.html
But the Credit Crisis remains on the front page of all news agencies these days, but the headlines are never consistent. Today, for instance, I brought up Bloomberg.com.. Here are the first four headlines I saw:
"Stocks in U.S. Climb as Oil-Price Drop Helps Retailers; Wal-Mart Advances"
"Money Markets Signal Worst of Credit Crisis Is Over as TED Spread Narrows"
"HSBC Sets Aside $3.2 Billion for Bad Loans, Says First-Quarter Profit Rose "
"Dollar Bulls Gain Control as Futures Signal High-Flying Euro Close to Peak"
Then, I go to CNNMoney.com, and I see these headlines:
"Get ready for more bank failures"
"America's Money: Gas crunch hits home"
"Stuck in an unwanted house"
"Foreclosures: The fight over the fix"
"Barely surviving on credit cards"
What to make of all this as a trader? Is the Credit Crisis really over? Should you fret about it? Will it affect your ability to profit in the forex?
Amazing, that two news organizations can have such different homepage slants on the same economy. But it raises some questions and illustrates a point I want to make.
The CEO of a public company once told me "Don't trust news you get from reporters who make $45K a year." While that may be a little short-sighted, there's something to be taken from that.
Here's my advice: Don't get bogged down by the daily news delivered by economic sites. Read it, and stay informed, but don't spend time trying to apply it to your trading that day. Think longer-term and have a more macro view. News is always reported after the fact, and it's usually slanted in some way.
Once you've developed your trading strategies, stick to the fundamantals you know, and follow your technical analysis. Don't ever try to trade the news. Certainly, you should read it, but with a wary eye. The daily rags can give you a barometer for economic conditions, but it can also slant you faster than you think. Just see Bloomberg.com and CNNMoney.com this morning if you need proof.
As for the Credit Crisis: Can the crisis really be over when the banks are still writing down losses and people are still losing their homes? That's like saying the basketball game is over because you've finalized your game plan. It still has to play out. The banks have figured out their models for handling the crisis, but it's not over.
For a weekly and daily overview of each pair, including charts, videos and data, check out our free pair dashboards:
http://www.pfxglobal.com/free-online...als-forum.html
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