Often times when reading or talking about crypto markets, we hear the term “fud”. But what I also often see is this word is used almost interchangeably with “fake news”. As if any bad news is simply designed to harm the market and can’t actually be true.

The problem with that type of thinking is nobody ends up paying attention to negative news. And negative news or opinions are what can cause you to lose money. Based on that, I understand why people who just invested a good amount of money into crypto don’t want to hear it, but avoiding it and calling it “fud” sets you up to lose the money you are trying to protect. You can’t stick your head in the sand or get mad when bad news might effect your investing strategy. Instead you need to determine if you should act or not.

You need to view all market news without any emotional response so you can make critical decisions on how that news may effect your trading strategy. If you allow too much emotion, such as getting mad at fud news, you can be swung either way and end up making the wrong decision.

So you need to be seeking out an equal amount of both positive news but also make sure you are seeking out contrarian or critical opinions as well. View them both without emotion and balance them each against each other. Then, using your experience and instinct, make the decision you believe is right. But if you never seek out contrarian points of view, your decision process will always be lacking this critical information. How can you make a good decision if you only listen to one side of an argument?

Finally, there are two types of news to watch as a trader. Actionable and non-actionable news. Actionable news is something that you can use to take some sort of action on with the purpose of either making a specific trade, or doing more research on the topic. Non-actionable news would be something that is relevant, but there is nothing you can do about it, it’s simply news.

For example, an actionable news story would be hearing about a coin you are possibly interested in looking to forge a partnership with some company. This is something that would cause you to take action. Either it would convince you to finally take a position in that coin or it would cause you to do more research on that partnership and what it could mean for the future price action. It could even mean you want to postpone your trade if the price has jumped on the news. But in any event, the news insists some action on your part.







An example of non-actionable news would be something like a John Mcaffee saying Bitcoin will be worth $100K by next year. This kind of news will make it all over Twitter and Reddit, as well as the cable news networks, but there is no action to be taken on news like this. It usually becomes the talk of the day or even the week, but it can be ignored since you are unable to take action on it that will lead to profits.

Now the two above examples were simple, but you should start thinking about the way you look at news. Make sure you are seeking out contrarian view points to balance out your positive news stories. And start breaking news stories into the two groups, ones that you can take action on, and ones that you cannot take action on. And as always, keep your emotions in check when reading or watching news, emotions have no place in critical decision making and trading is about making the correct critical decision. The more correct decisions you make, the more green you will see in your portfolio.