Does my market affect yours? Or does yours affect mine?

kevinmhughes

People always ask me why I have all the computer screens, TVs, radio shows, etc. on at the same time where they are all talking about the same thing, financial markets & world events.  There are 2 answers to that question, one of which is important: all the ‘goings ons’ (that’s Scranton, PA talk for ya) helps with my A.D.D. and the fact that each tick of every market does essentially affect every other market.  Case in point, look at the movements between the US Dollar & the Dow Jones Industrial Average (‘The Dow’) pictured below.

The Dow dropped about 250 pts while the US Dollar strengthened against the Euro by nearly 100 pips.  You can also see evidence of this when you watch the ‘stream’ on the StockTwits Desktop (if you’re on Twitter & StockTwits).  Equity traders will mention the US Dollar, Futures traders will mention equities, currency traders will mention indices and criss crossed across all financial instruments.  Not only can you see this cross market parallel with the US Dollar vs. the US indices, it is also seen with the Japanese indices vs. the Japanese Yen (JPY), Australian indices vs. the Aussie Dollar (AUD) and so on and so forth.  So when people decide to leave the ‘Motherships’ of their respective industries to chase the dreram of becoming their own boss, day trader I always ask what market they’re interested in and what do they know about the other markets.  That is very important!
DJI vs EURUSD
Trading is not a lazy man’s career.  You need to know the markets, all of them, and how they MAY affect each other.  Be confident and have a PLAN/Strategy & stick to it!


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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