Lesson#01
*Trading Based on CPI Data and Initial Jobless Claims*
Many traders jump into trades based on big news like the Consumer Price Index (CPI) or jobless claims. They think if inflation goes up (higher CPI), interest rates will rise, making the US dollar stronger and Bitcoin weaker. So, when the CPI number comes out higher than expected, they rush to go short the bitcoin assuming that the market would behave accordingly . The Fact is,market would have already adjusted for these numbers one or two days before.
The big players, the "whales," already know this stuff way before it hits the news. They've already adjusted their trades, so by the time we see the news, it's often too late. We're basically just feeding them money by reacting to news they already know.
The key is to look beyond the obvious. Don't just chase headlines. Dig deeper, understand the bigger picture, and develop your own trading strategy. This way, you're not just reacting to news everyone else knows; you're making informed decisions based on your own analysis.
