Imagine listening to a soft song in a noisy room. It’s hard, right? You might miss some notes or lyrics because of the loud chatter around you.
The same thing can happen when you’re trying to understand the financial markets. Here, the song is the underlying trend of a stock’s price, and the loud chatter is called ‘Market Noise.’
What is market noise?
‘Market Noise’ is like a room’s extra chatter or buzz.
All the tiny up-and-down moves a stock’s price makes don’t show where the price will go over time. This noise can make it harder to see the bigger picture of where the stock’s price is heading.
Why is market noise a problem?
Market noise can sometimes trick you into thinking a stock’s price is moving in a specific direction when it’s not.
It’s like seeing ripples in a pond and thinking there’s a big fish underneath when the wind blows. That can lead to rushed decisions, like buying or selling at the wrong time, which can lead to losses.
How do we deal with market noise?
Dealing with market noise is about understanding and planning.
First, we need to know that market noise exists and tricks us. Once we know this, we can focus on the more significant moves that show where a stock’s price is going instead of getting distracted by every tiny movement.
Next, we need a plan, a unique trading strategy that helps us ignore the noise. That could involve using different charts that smooth out small moves. This way, the noise gets less distracting, and we can see the main direction of the stock’s price.
The Next Step: “Beyond the Noise”
Learning to deal with market noise takes time and practice, but it’s essential to becoming a better trader. And the good news is – You’re not alone on this journey!
Are you ready to learn more? Our upcoming course, “Beyond the Noise,” is here to help!
This course will teach you more about market noise and give you a unique, easy-to-use trading technique that requires a visual reading of the chart. The rest calculation can be done quickly within the mind in just a few seconds.
To receive further information about the ‘Beyond The Noise’ course, please feel free to contact me via email at divesh@gann-trade-secrets.com
