Thanks for the info Nick. The AUD futures have netted me some pretty sweet profits which are keeping me afloat( a little longer? ).
My impression is that volatility is decreasing at the moment, at least compared to the july/august. It's getting harder to trade, but there could still be a couple of bucks to be made in it.
My opinion on the importance of news is changing right now, thanks to material i found here. I'm reading Tom Williams - Master the Markets.
It sounds like a marketing ploy for his software but the advice seems to be pretty good. Maybe you know how to play the news, i just got lucky a couple of times.
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As an example, you do exactly the same thing in your life. Your daily decisions are based on your
background information and only partly on what is happening today. If you won the lottery last week, yes,
you might be buying a yacht today, but your decision to buy a yacht today will be based on your recent
background history of financial strength appearing in your life last week. The stock market is the same.
Today’s action is heavily influenced by recent background strength or weakness, rather than what is
actually happening today (this is why 'news' does not have a long-term effect). If the market is being
artificially marked up, this will be due to weakness in the background. If prices are being artificially
marked down, it will be due to strength in the background. |
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1. The ‘herd’ will panic after observing substantial falls in a market (usually on bad news) and will
usually follow its instinct to sell. As a trader who is aware of crowd psychology, you must ask
yourself, “Are the trading syndicates and market-makers prepared to absorb the panic selling at these
price levels?” If they are, then this is a good sign that indicates market strength.
2. After substantial rises, the ‘herd’ will become annoyed at missing the up-move, and will rush in and
buy, usually on good news. This includes traders who already have long positions, and want more. At
this stage, you need to ask yourself, “Are the trading syndicates selling into the buying?” If so, then
this is a severe sign of weakness |
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