(Don't) Lose on News

My brainwashing started young. When I was a kid I’d see my parents watch the evening news. I’d see a man in a suit tell everyone the “Dow Jones lost such and such today” and explain how our economy was falling, crashing, failing, doing anything but good things.

And do you know what would happen?

I would feel fear.

I didn’t even know what the Dow Jones was or how the economy worked but I knew that they were saying something bad was happening, and we should be afraid.

I grew up, as many of us do, learning to REACT to the news. To feel fear when they wanted me to, and to feel greed the other half of the time when they wanted that.

When I first heard David Mitchell talking about the news, he talked about it in a way I’d never heard. He talked about it like he RESPONDS to and uses the news as just another tool he needs to accomplish his goals.

 And POOF, the fear was gone. I realized that now instead of trying to hide from the news, I could look at it actually have it help me in my endeavors.  I could respond to it without any emotion involved telling me to be scared or greedy.

 When it comes to trading, suppose that Michael Kors is announcing its great new summer fashion line-up and it sounds like their stores are going to be flooded with people. Isn't this the time to buy their stock?? Buying only on this information would be REACTING to the news (even if their stock had doubled after last year’s summer line came out). If a political leader threatens war and all  media spouts is panic, does that mean I should sell immediately?? I may decide to sell, but now know I can RESPOND to the news by following my trading system, the 3 legs of the trading table.

In life, especially in the middle class, it can be easy to react to everything going on around us. Something bad is happening? Run! Something good can be found here? Get it now!! Instead, if I respond to the things around me using the information I already have to plan a trade and then trade my plan, there is peace and power.

Next time you see the news and start to panic because it looks grim, take a deep breath and remember you have a choice. You can react to it and live on the endless roller coaster of emotions, or you can choose to see it through peace and respond accordingly.