Ever head of the saying “buy the rumor, sell the news”?
It’s a strategy some investors use that involves buying a stock based on a rumor and then proceeding to sell it once the news hits.
Breaking news and current events have the ability to affect the stock market for a short amount of time, causing certain stocks to jump up or down.
But there’s a reason you will not see the news stations playing while we trade. We’re strict technical traders, so we like to base all of our trades on technical analysis and indicators within the charts — not on the whispers of Wall Street.
We like to keep things simple, especially since technical patterns will always present themselves after a shift in news.