Raymont

The markets trade partly on financial information, but psychological factors are hugely important. A relatively small market like the ASX is far more likely to trade down after a negative overnight result on the Dow Jones than vice versa. Similarly, investor confidence in the New Zealand markets is more likely to be influenced by trends on the ASX than vice versa. No, different markets do not react unemotionally to the sum total of the financial state of the world.

OK, I guess this doesn't apply to most traders here.

Hi Guys, I trade on the ASX. Has anyone else noted that if the Dow Jones has closed down overnight that prices have to fall in Australia too, as if Aussies cannot make a buying decision without the OK from Wall Street? I've been having a hard time lately by making really nice entries into promising positions one day, only to find that they go bad if the Dow Jones is down the night after. I find it difficult enough to trade one market, let alone two at once. How do others cope, psychologically, with this? Thanks, Ray