Time(frame) Matters

Yesterday was a colossal collapse in the stock market after a great start. Or it was a non-event. Which one for you? Active traders have varied timeframes, and often it is hard to discern where they are focused. It is days like Wednesday that give insight into their true timeframe. As the market was reversing intraday I tweeted the message below

With so much information coming at you like water out of a fire hose, it is moments like yesterday that allow you to gather true insights. If you were freaking out between 1pm and 3pm then you had better be an intraday trader. If you gained some concern after the market closed because of a potential failed breakout then you are acting like a swing trader. And if you never even noticed then you are more aligned with a position or long term trading strategy.

There are successful investors and traders in each of these timeframes. I am not trying to make the point that one is better than the others. My point is that you need to make sure that your view of the market aligns with your trading and investing style. And that your filter on that information fire hose is doing the same, giving you information aligned with your timeframe. What did you learn about your sources of information yesterday?

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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