Be very very careful of what you hear and see on TV, I mean the Financial TV channels like CNBC, Bloomberg and the likes. Some of the heads there can really talk and when they talk they sound so convincing that it might even scare you out of a good trade that you are having on.

Remember, these commentators are paid to talk and present a good show and they are not responsible for your trade. As such, you have to really protect yourself from the hyped up news and ensure that it does not affect you and your trade. At times you will hear them say things like “The good news that have just been released will surely cause the Pound to appreciate against the USD” or “Crude Oil price is expected to reach $22 as inventories are high” and so on. Be careful. Be very careful of what you allow to seep into your brain.

I personally have in my earlier trading days been affected by the news and refused to take a loss due to something like the above comments. I have learned my lesson the hard way and I hope that you learn from mine.

Notice also that some of the talking heads talk about the markets as if it is a Wrestling match. It can really screw your mind if you really put too much thought in all that hype.

So guys, be cool, stay cool and follow your rules.

Happy trading!