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Old 08-29-2008, 12:36 PM   #8 (permalink)
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Join Date: Jul 2008
Location: Spain
Posts: 120

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Hi Dave,

I just wanted to update you on where I was at with some of the things we discussed above.

For a start, after what you said I have started practising more swing trades as opposed to day trades and have found the following main things:

1. Patterns do indeed seem much more more reliable on the longer timeframe charts.

2. The progress of the trades is a lot calmer simply because the movement usually takes longer, so I am less anxious to check progress every few minutes and feel I have time to consider my options thoroughly if things aren't going my way.

3. When calculating my position size and stops I have time to do it properly and not make stupid errors. On shorter timeframes I tend to rush so I don't miss the move I'm trying to get in on and lose my initial profit/loss ratio. In fact not missing the move becomes the all important thing and all rational thought and care flies out the window at this point.

4. The price I buy or sell at actually matches much more closely the position on the chart because the spread doesn't take such a large chunk of the profits. This means I can quickly visualise the actual profit ratios of possible trades on charts and not get a nasty surprise if I hit buy and see that the actual price I paid is already half way to my profit target.

I find shorter term trades more entertaining, fun, exciting, stressful etc. but so far less profitable for me.

I have been keeping a trading journal almost since I started and find it essential for working out what my strengths and weaknesses are. It also adds a bit of comfort and sobriety if something doesn't go my way - I grimace while I make the relevant notes of losses and reasons why etc. and then it feels like I've at least put that mistake down to experience and can move on.

So after hearing your feedback I think I am making better progress with developing a system that will work for me.


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