News And Events Don't Matter
FED meeting, Budget, Election result etc or any kind of news don't matter
As a swing trader any kind of inflow of information in form news especially does more bad then good and most of the traders give too much importance or become conscious especially in the days where there is some kind of major events like FED, Budget, Election result and some kind of negative news such has war, natural disasters etc or let’s say even stock specific news like order book or some management issue be it anything, which is not in our control actually doesn't matter at all.
Because news can be anything, positive or negative according to you but what matters the most is how it is perceived. That means news is not important. However, what the market does with that information is important. You can't make money based on news per say instead you can make money based on how it is perceived.
For example, in some cases you would have seen in specific stock, even if results are good stock gap downs and continues to fall or some time its other way around happens. Similarly it happens in so called major event days or be it anything it should not really matter.
My approach is simple, I just daily see, morning based on percentage advance decline (PAD). If it's bullish I take long setups and if it's bearish I short the market indirectly doing what market is perceiving the info and really not caring about news, events or anything. So, don't you think this is the right approach?? Logical?
Now what if you are already positioned, that is you have open positions. Mostly this will be your next question. Then 2 things should happen, if at all any damage on capital then that should or will be taken care by law of averages of your number of trades spread across an given period of time or else it should be based on your system, that means it should be designed in such a way that your never get caught because of any sudden miss happenings. In the second case, a market monitor inspired by Pradeep Bonde helps for situational awareness.
If either of two things is not happening then your overall trading system sucks.
Btw, before any major miss happenings in the market, If not always, most of the time it gives a signal to get out of the market like breakout stop working or existing trades stop working, so mostly there is some kind of signal and if you're not listening to it then you will be screwed.
Personally, I have always or could well in advance get away with any miss happening in the market and have zero damage on capital. It's just the way my overall system is designed. Even in recent gap downs due to US tariffs there was zero damage on capital as I said this is majorly possible because of using market monitor for situational awareness.
Summary,
News or events doesn't really matter, instead what market perceives it is what matters and what you do with that perception matters even more.
I play perception using percentage advance decline (PAD) and market moniter (MM) situational awareness (SA) in combination.
If you're constantly hit by sudden miss happenings in the market, technically you're surprised then your overall system sucks. Learn situational awareness using a market monitor.
Hence think what is in your control such as setup, stock selection, process etc rest nothing else matters.
News = Noise