It’s absolutely amazing how easy it is, to allow the mainstream media to influence your trading.
We see the headlines, we hear the talking heads go on and on… and a part of us just “defaults” to accepting the daily banter as “the way it is” or……just assuming these people must know right? They’re on T.V. and I’m just sitting here in my trailer.
I also advocate doing as much research as you can and formulating your own investment views, and perhaps even more importantly – sticking to the basics!
How about the age-old principle of SUPPLY and DEMAND!? Remember that one? It’s a good one!
Let’s take OIL as an example.
You know….oil – the single most important commodity on Earth (or a least to the degree that puny humans have based their entire global economy on it). One would really never have to question it’s “demand” and from what we all are led to believe – the supply shouldn’t really be in question either.
Then factor in global population growth and any number of other horrible / consumer related facts and figures and there you have it.
Long term demand (in today’s day and age) will easily counter this short-term oversupply, as humans will consume this sludge until the last possible drop has been squeezed from this planet.
The support area is very near, so you start doing a bit of research NOW, and keep the price of oil on your daily trades / watch list.
Find a couple decent plays and set the trap.
Let the price come to you.