trade the chart trade the chart not the news why people ask me do I look at the
news and I'm trading sometimes a little bit but I'm always looking at the chart
I'm going to talk to you guys about why it's important to trade the chart so
first off can you do me one favor let's go ahead and like this video subscribe
the channel help me help you I'm making videos for free so help me with a little
bit of you don't love give me a little love first thing I was talking about
people would ask me like they ask me about the news you know how do I find
out about news or do I trade stocks with news or how does it work well the idea
obviously stocks get news they run up big they crash down different things
happen you know we get bad news stuff happens but the big thing to think about
here is how I'm going to trade that action and I'm not going to ever trade
the news it makes sense so I'm not going to mentally think about the news so here
is a great example f c/e L the news on FCE L they had a big contract it came
out I got halted it squeezed up there from a dollar forty six up here to
dollar eighty so the idea is you know somebody saw this it's all the news wow
this comes getting big news they got a big deal I'm going to go long here and
this thing's going to go to $2 and people are emotionally connecting to the
news so instead of just trading the chart instead of trading the price
action they're getting in here you know at dollar sixty or something it runs up
to dollar eighty they're thinking yeah that's great but it's going to go to
dollars because it's got great news well all of a sudden it goes from a dollar
eighty drops down here to a dollar fifty and that same person is also thinking
well it's dropping but it's got good news so I'm going to hold it here I'm
gonna I'm gonna give it some time maybe I'm going to average down because hey
they got really good news so why not average down in the same time so now
they're averaging down it's pulling down it pulls down here to a dollar 47 so
after the average down again it drops again and the same time the person is
thinking well it's got great news so maybe I'll average down one more time
here why not I'm gonna you know it's got news it's got good news well that's the
thing though guys the other thing about is the market is smarter than you if
that makes sense so the market is going to interpret the news faster than you do
the market is going to execute the trade faster than you can on the news so the
news is really really really really really real
really really really good it's going to go up it's going to go flying up it's a
go-to to do and flying higher and higher but the news is just kind of good you
get a spike you get a drop something going to happen like that don't ever
think that you have some kind of mental ability to read the news better than all
the other people on the market and all the other firms and big money in the
market that sees the same news that you do don't think that you can read that
news and be like well it's they decide a million dollar deal so this is great
news the company's nothing they've made a million dollars since yeah this stocks
going to $5 and I see people talk about this all the time they read the news
they get they get attached to the stock they see the news and they think about
like this is amazing news but at the same time if the news is that amazing
the stocks going to show it the charts going to show it the price actually
going to happen when it comes down to it the big thing you wanna look for is the
chart I'm trading momentum I'm not trading the news I'm not just you know
oh this company's got amazing deal going on here they can I have a 10 million
dollar deal here if the stocks really that hot the stock is really that good
if the news is that good it's going to show it on the chart so don't think that
you can interpret the news faster than the rest of the market don't think that
you are going to be able to you know bide here is our 70 and think that the
news is good enough that pushed it to $2 because a lot of times what happens is
you get stuck and it just crash it down you had a lot of people buying into the
news there let's say time everyone's selling into the news as well and boom
crash down so the big thing to think about here is do not get emotionally
attached to news if you get into a stock and you it starts to crash if it starts
to go down and you're like well it's got good news I'm going to hold it for a
couple days who knows maybe we'll go back up I'm going to just give it a
chance here because it's got really good news but that's the big flaw there do
not get emotionally attached to the news don't think that you can like I said
interpret the news better than the rest of market because if the news is that
good it's going to go up never marry a trade never marry a stock even if the
news is so good it's like this dog is getting a billion dollar deal if it's
not that good of news it will happen if the news is that good you'll see it
happen on the chart it really comes down to it really the chart will show the
true story of the news how valuable that news is and if it's not that good news
you'll get some like this on FCL happens so like I said do not marry your trades
do not marry News focus on trading the chart focus on
trading the price action and look to see what the buyers are doing where the
sellers are in you'll figure it out a lot faster than actually reading the
press releases because number those are press releases the companies put these
releases out they pump them up a little bit they want to get some action they
want to get some buy and they want to pump their stock up so they put the
press release out but in the day if the news is really that good it'll show here
on the chart so don't marry your trades don't get emotional about news focus on
the chart