In this week’s episode what I’d like to do is share with you some insight about economic indicators and more importantly the Jobs report or the labor report.
Just so happens, we haven’t talked too much about the jobs report, or a lot of economic indicators, that come into the market.
What I’m going to do is give you some insight about this economic indicator, about the jobs report and really, does it really matter? Does it really not matter if you’re trading in the market?
I’ll give you some quick insight about this jobs report, in general what most people look for when they’re looking at this jobs report is they’re looking for how the economy is performing, it’s an indication of really how many jobs are created, how many jobs are lost, and it gets you to see how the fundamental market is really behaving.
Does the jobs report matter?
In terms of the relative size or relative scope to your personal positions, do you really care about the jobs report? Do you really care in terms of trading in your investments? Does it really matter if the job gain or growth is two hundred thousand, three hundred thousand? Does it really matter?
No, absolutely not, it doesn’t matter. What you care about when you’re looking at your trading, at your position, you’re looking at what’s your risk, how’s the market moving, how’s the market reacting, what is it doing and how does it perceive that jobs report. That means, what does it mean for everybody else’s trading as this job report comes out?
If you’re a retail trader, assuming you’re listening to this, you’re probably not a hedge fund, but if you are a hedge fund, you’re the type of person that can manage and move around the market.
But being a retail trader, what you’re doing with these jobs reports, is you’re watching to see when these things happen, when these economic indicators come out and then you’re tweaking and adjusting your position based on how the market reacts to them.
Focus on your position
Really it doesn’t matter if the job growth is great or if the job growth really just stinks and it’s horrible. All that you care about is how is the market behaving and how does that affect your position, your profit loss, your stocks, your risk within the market.
For everybody else in terms of, if they’re running a hedge fun, for them it’s a little bit of a bigger deal because they might be looking at a longer-term scope and they need to really manage and adjust their positions.
Running a marathon
How do they do it? Well, don’t stress about that too much, because it’s kind of like, if you go into a marathon race, or swimming, you don’t care about how fast the guy next to you really swims, if you’ve got, let’s say, 10 thousand runners, like in the Boston marathon, you care about your pace, your water, your liquid and how is your bike running in the tour de France. You don’t worry about the guy next to you as long as he doesn’t get in your way.
The same thing here, you’re not really worried about what the other guys are doing, instead you need to look at your positions and how that’s going to affect your positions when this economic indicator come out.
#economicdata #economicindicators #jobreports #laborreports #tradingjob #tradinglabor
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