How To Trade The News — Rule 4
You have your investment thesis. You are committed to being objective (Rule 1) and strategic (Rule 3). You are disciplined about understanding that The Trend is Your Friend (Rule 2). You have a mechanism for tracking news developments.
Then a blockbuster economic data point is released, which generates substantial market volatility. What do you do? Hope for the best? Take the ostrich strategy and pretend the data don’t exist? Rationalize that you are only trading the news so the data is irrelevant?