Rebel Traders 025 : Proactive or Reactive Trading
Do you always find yourself reacting to the news, gaps, rampant earnings or buying hype or selling hope? Then you may be one of the many traders that are reactive instead of proactive...
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One thing many traders fall foul of is being a reactive trader. Jumping in to positions because of news, gaps, Social Media hype, price jumps or massive earnings announcements. Many reactive traders getting caught in a bad trade after a move has already happened hoping to ride the coat tails of a move.
In this weeks show, Sean and Phil examine the opposite and preferable trader position of being proactive and capitalizing on moves before they happen with more systematic approaches to trading.
3 Key Takeaways From This Show
- Anything you hear on the news or from pundits is usually a reaction to an event that has already happened and there is an additional delay between that reporting and the event that already occurred.
- Having a systematic, adaptive approach to trading allows you to be ahead of the news and often time, the events about to occur.
- It's better to be a proactive trader who can filter out the noise rather than a reactive ping-pong ball trader who has to jump to every noise the market makes.
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