Without economic data from the Federal government – but plenty of signs that the economy is on shaky ground – you may have noticed that the market noise is growing. That also means that bad trading advice is running rampant.
Equity markets tend to get more volatile when uncertainty builds. This is where we find ourselves right now. Speculation regarding an AI bubble, inflation, jobs numbers, and much more is eager to fill the information vacuum.
(What really stands out for me is the amount of fear mongering from outside the usual financial/business outlets. I recently saw a few posts on X (Twitter) warning people that the end of the world was nigh. If I had a dollar for every time I heard that, I would be as rich as Warren Buffet.)
As traders, we tends to look for answers from smart, successful people, and that is where we can get into some trouble. Many of us follow other traders and analysts who may have information to help us make better decisions. If they have been right in the past, we are eager to listen to them.
Now, there is nothing wrong with seeking outside counsel, but be very careful of the source. With one piece of bad trading advice, you may place an unwise (and massive) trade or sell a position prematurely.
Instead of chasing information down a rabbit hole, pay attention to the charts.
Technical indicators are the only reliable source of data to follow. They will help you make informed trading decisions, not a whiz kid on X who may actually be a bot. (New-ish to trading? Then definitely download my latest ebook, which covers the top stock technical indicators I use on a regular basis.)
Don’t forget that the markets are unforgiving if you make a mistake. If you panic and unload your portfolio for the wrong reasons, you’ll end up regretting it.
