| As a technical trader, I rely heavily on price charts | | | | majority of traders are doing. For example, if I am |
| for my stock selection and investment decisions. | | | | long a particular stock and all I hear from the financial |
| Even though technical analysis is my main trading tool, | | | | network news services is that this stock looks like it |
| I do feel it is important to follow the financial | | | | can go a lot higher, I am more likely to speed up my |
| network news services because they can provide us | | | | liquidation criteria. The reason for this is because |
| with information the charts simply won't show us. | | | | when a trade is crowded (everybody is positioned |
| One way I use the financial network news services in | | | | the same way) there is a good chance that the |
| my trading is to alert myself to announcements that | | | | buyers may have exhausted themselves which |
| are scheduled to be released in the near future. | | | | means the stock may be vulnerable to a decline. It |
| Some of the announcements I will keep track of are | | | | doesn't mean a decline will happen, but at the very |
| economic reports, earnings reports, conferences and | | | | least I am now alerted to the possibility of a sell off |
| announcements made by the Fed. When I know such | | | | due to the extreme optimism that exists. |
| an event is scheduled, I usually cut back on my | | | | Breaking news is something that catches many |
| trading size because of the anticipated volatility which | | | | traders by surprise and by following the financial |
| many times triggers my protective stops. I'd much | | | | network news services a trader can at least |
| rather be on the sidelines wishing I was in the market | | | | understand the cause behind a sudden move in the |
| than being in the market wishing I was out! | | | | market. By being aware of such news, a trader can |
| Another effective way of using the financial network | | | | decide if it's worth risking holding an existing position |
| news services is to see how a particular stock reacts | | | | overnight or would they be better off liquidating |
| to a report. For example, if the financial network | | | | before the close. |
| news services reports that a stock's earnings are | | | | As you can see there are several benefits to |
| bad but we notice that the stock rallies (especially in | | | | following the financial network news services. Even |
| a weak market) that is considered to be bullish. The | | | | though a technical analyst will argue that all the |
| fact that this stock was able to rally in the face of a | | | | information on a stock is already factored into a |
| bearish report tells us either the sellers have | | | | stock's price, I think it would be wise to combine |
| exhausted themselves or that the smart money is | | | | technical analysis with the news. This business of |
| picking up the stock. This is important information | | | | trading is hard enough and we should take advantage |
| that you'll only be aware of if you follow the financial | | | | of every edge in the market that is available to us. |
| network news services on a regular basis. | | | | By being aware of scheduled announcements that |
| Contrary opinion can be be a wonderful tool to use in | | | | may dramatically affect a stock's behavior we can |
| your trading and by following the various financial | | | | better position ourselves accordingly and protect our |
| network news services that are available to us, we | | | | trading capital which after all should be every trader's |
| can sometimes get a good feel as to what the | | | | ultimate goal. |