If you're talking about trades that last longer than 30 seconds, I don't agree. In fact, I think it's very much the opposite.
I think to really be able to take advantage of market swings, one should know as much as possible about what factors influence that market, as well as all other markets which might give any clue as to what the nature of the move is. I don't think one can take the easy way out and just watch price alone -- it may suit one's style to do that but imo, to be able to really trade with confidence and not second guess every pullback or drawdown it's important to have a good "thesis" or idea about what's driving what.
A simple example is a company that reports a blow-out earnings report and yet the stock barely budges past it's 52-wk high -- doesn't that color your judgement about the future movement of the stock? An explosion at a chemical plant (today) sends the dollar into a short dive, yet before the smoke even clears on CNBC the yen is already back to its weekly low -- there's another clue that's actionable. I don't think it's a good idea to just jump to conclusions with every story that comes across the wires, but each just serves as an additional hint as to what is going on -- I'd say price action, volume, and charts are just more "hints" along the same lines.
If anything, knowing more about all the different markets (equities, treasuries, currencies, metals, etc) and how they trade off each other makes things a hell of a lot more interesting than just watching a single number go up and down. jmo . . .
I think to really be able to take advantage of market swings, one should know as much as possible about what factors influence that market, as well as all other markets which might give any clue as to what the nature of the move is. I don't think one can take the easy way out and just watch price alone -- it may suit one's style to do that but imo, to be able to really trade with confidence and not second guess every pullback or drawdown it's important to have a good "thesis" or idea about what's driving what.
A simple example is a company that reports a blow-out earnings report and yet the stock barely budges past it's 52-wk high -- doesn't that color your judgement about the future movement of the stock? An explosion at a chemical plant (today) sends the dollar into a short dive, yet before the smoke even clears on CNBC the yen is already back to its weekly low -- there's another clue that's actionable. I don't think it's a good idea to just jump to conclusions with every story that comes across the wires, but each just serves as an additional hint as to what is going on -- I'd say price action, volume, and charts are just more "hints" along the same lines.
If anything, knowing more about all the different markets (equities, treasuries, currencies, metals, etc) and how they trade off each other makes things a hell of a lot more interesting than just watching a single number go up and down. jmo . . .
