zentrader.ca / By Chris Ebert / October 9, 2016
Should Technical Traders Watch The News?
For many years it has been no secret to readers here that it is possible to make a case that when viewing stock prices from a technical standpoint, the chart creates the news and not t’other way around.
Given the ease of access to financial data these days, not only through traditional sources such as print, radio and television; but also in real time on computers and mobile devices, a trader can be bombarded with news from all angles. That raises a new question for technical traders – those who base trades purely on the charts of stocks.
“Should a purely technical trader make efforts to avoid seeing financial news?”
Certainly one of the most famous traders in history, Nicolas Darvas, made a point of stressing how he made millions in the stock market as a purely technical trader but almost lost it all when he exposed himself to the news. He revealed the details in his classic 1960 book How I Made 2,000,000 in the Stock Market.
In modern times, Steve Burns, another very successful trader proved that the Darvas technique is still valid today. His methods are detailed in his 2010 book How I Made Money in the Stock Market.