Trading on Trend Lines, Not Headlines
This column appeared first on RealMoney . For a free trial subscription to RealMoney and access to all of Dan Fitzpatrick's pieces, click here.
Everyone has his or her own reason for trading. That's what makes the market so fascinating. A collective group of individuals, each with the power of independent thought (yet with a tendency toward herd mentality), push and pull on the same securities for different reasons.
People interpret news differently. Rarely is a significant market move attributable to a single news event. It happens -- and will likely happen as the war grinds to a conclusion. But don't count on being able to capitalize on the news for consistent profitability. Instead, use squiggly lines.
Linens 'n Things
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV