tag:blogger.com,1999:blog-2643613788950912206.post6546093218616686771..comments2023-09-17T02:33:56.785-05:00Comments on The TSI Trader: No Closure - But For Another DayJohn Townsendhttp://www.blogger.com/profile/13243755287314446656noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-2643613788950912206.post-58172708618037097212010-08-16T11:16:46.513-05:002010-08-16T11:16:46.513-05:00So true John. I often see trades at the small time...So true John. I often see trades at the small time frames and start to take them only to look at the next higher time frame to see that at that level, it is right at resistance and likely to correct. I like to use the hourly time frame as my trading time frame. If I see a set up at the time frame, I then look at the 5 minute to try to identify the opportune moment to enter, same with the exit. If I'm trading the daily time frame, I might use just the hourly for my entries/exits. One way to handle the situation you describe where you know it is going to go against you on one time frame, but you are holding for a longer time frame is to segment your trading capital so that you trade on both time frames. That is, sell part on the sell signal of the shorter time frame, but hold the other part for the longer term.<br /><br />It's been great having you walk and talk us through your trading methods, I'm sure you are a great teacher in person too.gmadronenoreply@blogger.comtag:blogger.com,1999:blog-2643613788950912206.post-66863644463353356262010-08-13T23:15:57.114-05:002010-08-13T23:15:57.114-05:00Hi Joe - thanks for a great question!
The challen...Hi Joe - thanks for a great question!<br /><br />The challenge to timing the market successfully is partly a question of the time frame one choses to view it and act on it. <br /><br />To be really safe, one should use a weekly time frame. Then a little more risky is the daily time frame. Then 60 minutes, 30 minutes, 15 minutes, and so on.<br /><br />With TNA, I was going off the 30 minute chart and in my assessing things, used time frames down to 5 and even 1 minute. <br /><br />And of course, on the faster time frames you will see buy and sell signals that will not even remotely show up on the slower time frames, such as 60 minutes. Yes, these were often the signals I was acting on with BUY orders.<br /><br />The catch to using the shorter time frames, I am relearning, is that you can make great very short term calls, but they do not necessarily hold up favorably in the longer term.<br /><br />In the bigger picture of things I believe that Ben is going to sink the US Dollar, but contrasted with using 30 minute and faster time frames, it proved difficult these past two days for me to profitably reconcile the two conflicting views - one bigger picture and the other, very very short term.<br /><br />The true lesson to be learned (in my case 'relearned' until I get it through my head enough times) is that you need to trade - buy AND sell - using the general time frame appropriate for the desired holding period of the position.<br /><br />Numerous times I KNEW when price was going to turn against me, but I did not sell because I wanted to hold for a longer time frame. In effect, I had one time frame on my computer and another in my head. That just doesn't seem to work real well :)<br /><br />But in my defense, I remind myself that at one point yesterday I had a 10.4% draw down with BRD, a 7.1% draw down in both CDY and JAG, and today a 8.7% with BAA. That did not bother me one bit that I can remember.<br /><br />My total position in TNA ended today with a draw down of 6.2%. So I guess I have to be thankful for that, and I am. <br /><br />Besides, I had great fun these past two days, this opportunity to sit around and watch the stock market all day has now come and gone, and I have no regrets, just good memories.<br /><br />Thanks for your post.John Townsendhttps://www.blogger.com/profile/13243755287314446656noreply@blogger.comtag:blogger.com,1999:blog-2643613788950912206.post-32996606080946401842010-08-13T18:05:24.074-05:002010-08-13T18:05:24.074-05:00Hello, John
I have been wondering about your tna ...Hello, John<br /><br />I have been wondering about your tna trades. Typically, I look for divergences as you do, but I wait for clear upside breaches of trendlines to confirm that my suspicions were correct before I make the trade. I assume you have tried this and decided to predict the move and jump in advance. Any comments or thoughts you might have about these strategies will be most appreciated.<br /><br />joe p.Anonymousnoreply@blogger.com