The start of a new week. To look at the financial news, you would think it was the end of the world. Sort of like last week. And the week before that…
Last week it was the EuroCrisis. Again… This weekend, that was the big talk too. Then the news became more about the Supreme Court decision on health care in the US. Another biggie. It will effect about 18% of the US Economy for years to come. So the TV Talkers are moving on from the EuroCrisis to the Health Care Crisis. That is until the news breaks. Then they will move back to the EuroCrisis, until the next “crisis of the day”.
I enjoy this stuff, so much so, I am watching, listening and learning from it every day. The world has its lessons to teach. But you can get caught up in watching each stock market tick and miss the trends. Don’t miss the trends while you are fixated on the ticks. Zoom out. Take a step back. Don’t miss the forest for the trees. They say that for a reason.
So if you like watching the day to day ticks, as I do, enjoy! But don’t forget to look at the bigger picture. “Zoom out” from that daily chart to that weekly chart, then keep going out to the monthly, quarterly, yearly and long term multi years. Use a big index to look at the big picture, I use the S&P500 because it makes sense for me. What will you use? What applies to your life and your trades? Maybe the S&P500 or The Dow or maybe the NASDAQ has the clues for you. Keep things in perspective. Zoom in and zoom out. Watch the reaction when the news hits and then watch the crowd move on to another news cycle and another crisis. Then repeat the process. Then you will see that that big market move on that one big day, really didn’t make all that much difference when you start looking at weeks and months. Keep it in perspective.
Keep watching and listen to what the market is telling you, not what the TV Talkers tell you that the market is telling you. The world works in a certain way, no matter what they say… Have fun learning. I will be watching too. Right now, I have to get back to work!