I started out trading forex and was taught to look at multiple time frames so it’s something I’m used to doing. I used to primarily trade on the 4H and I would hold it for a few days. I switched over to trading stocks in January and it seems that the consensus from the people I was learning from was to just stick with day trading or swing trading. They swing trade and mostly use the Daily and rarely look at the intraday. I’m told that it’s style drift to try and trade different time frames. When I had a full-time job, I started out swing trading large-cap stocks on the Daily/Weekly but lately, I’ve been day trading small caps or very volatile stocks on the 3 min but I still use the 15min, 1H, and Daily. In the end, I know it’s do what works for you, but I’m struggling with consistency and was told that trying to trade both styles may be my issue. Is what I’m doing style drift? I thought that as long as I was using the same strategy across any stock and any time frame it would be fine but I must admit that I will confuse myself sometimes and manage a day trading stock like I do a swing trading stock and vice versa. Any advice on how I can do both or should I just focus on what works best for me right now? (That would be day trading high volatility stocks)
Trying to diagnose the problem with such lack of insight is irresponsible, so I won’t even try to tell if this is style drift or is one of your methods have “rough market” or if you break your own rules. You can’t solve the problem without identifying it.
I would trade for some period with one method, then with other and see what is your performance in isolation. If both are profitable then you may join again and see if there is statistically significant impact on results. If one is losing, well you may want to abandon it long term
Well, that’s not surprising is it? And it’s got nothing to do with trading styles, time frames or trading different markets.
It’s a failure to focus on the process. Which should be following your strategy, exactly. And what works best for you is day trading high volatility stocks. Become experienced on that and you’ll be successful.
Or do you want to be a jack of all trades - which certainly won’t bring in the dough, would it?
I’d love to be able to trade using both intra-day and swing trading approaches, but I am good at one and incompetent at the other.
I guess its like trying to be both a successful racing car driver as well as a successful motor bike racer. There’s no reason why both can’t be done but very few people can do both well enough to justify the effort and risk.
perfect one first