The squawk box in the background

[Fairman]

The squawk box in the background

News squawks, audio feeds that read headlines in real time, are popular among traders. They provide speed. They also provide noise.

A steady stream of voices announcing minor data, comments from officials, and rumors, keeps the mind on edge. Many headlines are irrelevant to the pair being traded. Each one provokes a small reaction: should something be done?

The cumulative effect is anxiety and a tendency to overreact. A trader hearing a dramatic headline may close a position on a whim, when the market's response is negligible.

Speed matters only for those who can act on it. A retail scalper receiving a headline two seconds after the machines isn't ahead of anyone. The information helps with context, not with timing.

An alternative is a text-based news feed filtered to the pairs and topics that matter. It's less intrusive and can be scanned when convenient.

A news setup worth keeping: what does it look like, and how often does it lead to a decision?