That certainly is me Also the question of why is this move important in the trend and not this move?
If you have followed my thread for a bit you will see that I shift gears often and fast. Right now I feel like I am lost in the wilderness and am just bouncing around in circles and not making any forward progress. At this point, I feel torn between swing trading and getting flat at the end of the week versus day trading and being flat at the end of the day. Both approaches appeal to me.
Swing trading is appealing because I can do my analysis on Sunday before the market open and take all the time I want. I can catch bigger moves. However, I also take on more risk so in the beginning I would likely be limited to one active trade.
Day trading is appealing because I am in and out of trades faster. I see the results sooner. I can get into positions faster. Stop losses are tighter. However, the moves are smaller. When I start trading, I will only have three hours a day in front of the charts.
The next logical question in my mind is why not both? Why not setup swing trades on Sunday using the daily chart for the overall big picture and key structure levels, the 4 hour chart for directional bias and the one hour chart for entries, targets, and stop losses? Then Mon-Thu why not spend those three hours per day day trading using the 1 hour chart for the overall big picture and key structure levels, the 15 minute chart for directional bias, and the 5 minute chart for entries, stops, and targets?
All of this also does nothing to decide how to enter trades. Do I enter trades just using support and resistance levels, ie, buying as price enters support and selling as it enters resistance? Do I use Fibonacci to set profit targets? Do I look to trade harmonic patterns? Actually I can answer that one with a very loud and resounding no. I hate trading harmonic patterns because I don’t see them very easily.
Or do I enter based on a moving average crossover? Do I use RSI, Stochastic, or MACD to enter trades? Do I use 1 or 2 ATR for stops or targets? Do I insist on only 2:1 risk reward ratios or do I try to up my win percentage and take a lower RR ratio. Or do I only take higher RR ratios so I can loss more often?
Every single piece of advice on this says to go with what works for you. How do we figure that out? Should I just go into a demo account and trade it taking screenshots of all my trades and then go back and look for common elements? Should I put together a plan, spend 100-150 hours backtesting it with historical data to generate stats, and then find out it doesn’t work?
Go with your edge. How the heck do I know what my edge is or if I even have one? Should I be keeping a detailed trading journal at this point even though I am not trading a set plan or strategy?
I think I am slowly moving from unconscious incompetence to conscious incompetence at this point. A month ago, I didn’t even have those questions on my mind. So I am taking these questions as a sign of progress.
I am going to be on a business trip all next week starting Monday and getting back Thursday. During that time I hope to be able to carve out enough time to finish reading “One Good Trade” and “The Playbook” (I am reading these two books simultaneously). My hope is that by reading these books I can start to put together my own trading ideas and start to formulate a better strategy than what I have shared here so far.