May 18, 2013
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Trading Update 051313 – 051713: A Question of Logistics and Time Frames
Another mixed week as I try to implement my new methods. I realize that it’s important to have the right time frame in view at all times to get a better picture of market overall activity. Otherwise, you can get caught up in the heat of the short term battle and wind up making mistakes.
Good week for learning risk management. As I do battle with real time charts, it becomes clearer how to manage positions and control risk by adding, subtracting,entering, or exiting a position.
What I’ve found is there are pockets of uncertainty in the market but there are also areas of high probability. The key is exploiting the high probability areas while avoiding the more uncertain zones. That may sound confusing to the average market watcher, but for a person who actively studies market data daily, it makes more sense.
Looking closely at market activity, it’s uncanny the way the market moves – as if to entice both Bears and Bulls at the same time even though only one side is right. The key is time frames. The market can be bearish and falling in the short term, but still heading higher longer term, only to be heading lower on a still longer term. This is how the market can trick you into seeing what you believe, and why it’s very important to know what time frame you’re trading in.
Comments (2)
Yes. That’s what ive been noticing too. Although its hard to predict what these wall street traders would do next
@juiCyer - After a while of staring at charts, you begin to see behavior patterns of traders that helps resolve the unpredictability. You should write more about your market activities. =)