What Makes This Trade Great: Flexibility in the Face of NewsBy Barrie Einarson
What Makes This Trade Great: Flexibility in the Face of NewsBy Barrie Einarson
Dec 23, 2024
Good morning, traders! Let’s dive into today’s highlight: RUM.
Now, here’s the thing about trading signals like the ones we get from RAI—sometimes they suggest one direction, but the market has other ideas. Case in point: this morning, RAI flagged RUM as a potential short at $10.47. But after taking a closer look, I knew there was no way I’d go short.
Let me tell you why.
Tether’s Game-Changing Investment
Here’s the big story. Last week, RUM was our Trade of the Week, handpicked by Steve Gomez. It was already a solid pick, but today’s news sent it to the moon. Cryptocurrency powerhouse Tether made a $775 million investment in RUM, buying shares at $7.50 a pop.
That kind of news? It’s a market mover, plain and simple. RUM absolutely exploded, and many traders in our room jumped on the opportunity.
The Lesson
Just because a signal points one way doesn’t mean you have to follow it blindly. Algorithms like RAI are fantastic tools, but they’re not gospel—especially when something like Tether’s investment hits the wires.
As traders, we need to stay flexible. When I saw the news, I knew RUM wasn’t a short—it was a screaming buy.
Final Thoughts
This is why I always stress staying informed and being part of a trading community. Signals are helpful, but adding the human element—analyzing news, understanding market sentiment—makes all the difference.
That’s it for today, folks. Stay sharp, stay flexible, and I’ll see you back here tomorrow.