2011 hasn’t shown a lot of joy for most traders, with sharp unexpected movements. At times it was a toss of a coin which direction the market was going, often led by rumours and speculation from distant corners of the world. Maybe this is the world we trade in now – gone is logic and common sense, 2011 saw the rise of the headline grabbing sensationalism.
I think we all love the way information flows now, but the downside is if a journalist or blogger in the back-blocks of Spain has a deadline – his/her story has the ability to send instant shockwaves or ripples through the worlds financial markets within minutes. In the hours following the facts will be confirmed or rejected and the market starts a correction. But the initial market reaction is the one that has been hurting.
Maybe next year we need to turn off the news including twitter feeds and get back to the business of dealing with financial markets in a logical controlled manner.