As a day trader, I’m often asked how I’m able to gather and digest all of the news that comes out on a daily basis.
The economic news… industry news… company news… political news… basically anything that might impact market direction and tone for the day.
How do I get through all of the information, understand it and synthesize it for potential use during my trading day?
The answer is pretty simple actually…
Don’t know… Don’t care.
And that means just what it says. I don’t know what the news flow is and what’s more, I don’t care to know.
I had the chance to see this principle in action (once again) today.
Before the U.S. cash open, the S&P Emini [ES] was down multiple points ostensibly because of an announcement that China planned to respond in kind to the recently announced U.S. tariffs.
The market began to bounce in the wee hours, but once open, the market proceeded to trade straight up over the course of the day.
Folks coming in this morning with the “news” as their back drop proceeded to try to short the ES… repeatedly.
It didn’t work out well.
Click the image below to hear more about DKDC.
While DKDC applies to longer timeframes as well, the longer the time period you’re watching the more you need to at least understand what’s going on in the world… a little.
But price action should always drive the bus… Don’t take my word for it… Test it for yourself.