In the trading world, there are 2 common types of people:
One side breathes drama, closely follows the news, 'trading fast and withdrawing quickly'.
One side believes in models, indicators, and the past to predict the future.
But in reality, both can easily be illusions of power, and can be hit by the market if one does not understand the essence.
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📰 Group 1 – News traders: fast profits, high risk, easy to be 'squeezed'
These are people who react extremely quickly to information – from CPI, FOMC, war news, ETFs, exchange hacks, Elon Musk tweets...
The general mindset is:
• “Hot news is an opportunity”
• “You have to enter before the crowd to profit”
• “Quick reaction is key”
Sounds reasonable, but remember 3 harsh truths:
1. The market has 'priced in' before you even finish reading the headline.
If you just saw news and are already thinking about a trade, then you are slower than a bot and the fund by at least... a few seconds to a few minutes.
2. Not every news is clear in direction.
For example: CPI decreases, should be good – but if it drops too deep, then concerns about recession arise. Trading based on news but not understanding market psychology → very easy to go against the trend.
3. News is just an excuse.
Sometimes the price wanted to move beforehand, and the news 'clears the way' for the push. You think the news creates waves, but in reality, the waves use news to rationalize behavior.
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📊 Group 2 – Indicator traders: looking at past data to predict the future
These are traders who use MACD, RSI, Ichimoku, Fibonacci, ATR, volume... to analyze market behavior. They believe that crowd behavior is repetitive, and price reflects everything.
The mindset of this group is:
• “Everything is already in the chart”
• “History does not repeat itself, but it has rhythm”
• “Indicators don't lie, humans do”
The problem is... you're reading past data, but have to trade with expectations about the future.
If you only focus on signals crossing, divergence, breakouts... without understanding the crowd psychology behind the wave, you're trading like a machine... but not as smart as a bot.
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🎯 Hard truth: both sides are easily trolled by the market
News is noisy, indicators are delayed. News reacts emotionally, indicators reflect the past.
The market does not pay for those who react quickly or those who calculate well – it pays for those who understand where they are in this psychological game.
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✅ Practical perspective: choosing a side is not as important as choosing the right timing
• News should be used to understand context and short-term psychology – especially strong shocks that create wide margins.
• Indicators should be used to confirm trends, identify good price areas, and manage risk.
Don't idolize either. Use both as tools – not as a religion.
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🧠 Reverse question: are you trading based on news, or are you being manipulated by news?
Do you enter a trade because you analyze psychology, or because you are FOMOing from a tweet?
Do you set SL because of the system, or because you saw someone say 'there's support' there?
If you can't answer that, then whether you follow news or indicators – you're just gambling.
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Conclusion
Don't ask: 'Should I follow news or indicators?'
Ask yourself: 'What do I understand about the market's mechanisms, human emotions, and about myself?'
The winner is not the most skilled – but the one with the least illusions.