Hey Traders,
If you’ve been following my approach to trading, you know I’m all about following the trend.
I don’t get bogged down by the news — in fact, I actively try to avoid it — and there’s a reason for that.
Let me tell you a quick story. For a year now, people have been saying that customers were leaving Broadcom (stock ticker AVGO) in droves after Broadcom acquired VMware and tripled prices for some customers.
It was all over the tech forums, and people were speculating that this could hurt Broadcom’s stock.
I’m sure some traders out there were getting nervous and second-guessing their positions. But I’ll tell you this: it didn’t affect my trading at all.
In fact, it never does. News like this doesn’t change my strategy, because I’ve been around long enough to know that the trend doesn’t change because of news.
Why the News Doesn’t Matter
Let’s look at another real-world example.
At the start of this year, people were calling Nvidia (NVDA) “overbought.”
Some traders said it was the “most crowded trade” out there, implying that it was a house of cards about to come crashing down.
They pointed to the price run-up and warned that it was too high to keep going.
Well, if you had listened to that news, you’d be sitting on the sidelines right now, missing out on a 201%+ gain that NVDA has racked up so far this year.
And that’s what happens when you let the news dictate your decisions.
Always remember: The trend is your friend — and following it has consistently worked out better for me than trying to predict or react to the news.
The Media Is Out for Chaos, Not Clarity
Let me give you another example.
Back in October, I was heading to Italy for my son’s wedding.
The media was in full-on panic mode about a dockworker’s strike. They were predicting the end of the world, or at least the collapse of the global supply chain.
But when I came back 10 days later? Nothing.
The headlines had moved on to the next crisis, and the stocks I had been watching were still trending exactly as they had been before the news hit.
Here’s the thing: The media loves chaos. They need to make you think the world is falling apart so that you’ll watch their show or click their link.
But the reality is, the trend doesn’t stop because of the headlines.
The same stocks that were trending before the media hype were still going strong after the news was forgotten.
Why Avoiding the News Keeps Me on Track
Even though I’ve been doing this for decades, I still have to avoid the news.
I’ll be honest with you — when I read those doom-and-gloom headlines, part of me wants to adjust my trades… or get out of them completely.
It’s natural to worry. That’s what those headlines are designed to do.
That’s why I try to avoid reading the news as much as possible.
I’ve seen it time and time again: The more you react to the news, the more likely you are to mess up your trades.
I think there was even a research paper that came out a while back that proved it scientifically.
Reacting to the news has never been a good move for me, and I’ll bet dollars to donuts, it won’t be for you either.
Let’s Talk About Broadcom (AVGO)
Back to AVGO — yes, it might be losing some customers due to the price hikes, but that’s not the whole story.
Sure, they might lose the smaller, less profitable customers, but big companies with deep pockets will gladly pony up for those services.
In the end, AVGO might actually end up making more per customer than they did before. So while the headlines might scream about customers leaving, I don’t believe that’s the full picture.
But here’s the thing: It doesn’t matter to me either way.
I’m not trying to predict what’s going to happen based on speculation.
I’m following the trend — and right now, the trend is telling me to stick with my approach.
The Bottom Line: Stick to the Trend
Don’t let the headlines shake you.
News will always be there, and it’s designed to make you react with fear or greed.
But the trend? It’s not swayed by the latest media panic, and neither should your trading.
So, stick to what you hear me say time and time again: Follow the trend, and keep your emotions in check.
The media will keep bringing chaos, but the trend will keep marching forward.
Trade well,
Jack Carter
P.S. Tune out the news and tune in right here for my top 3 stocks for 2025!
