Following my charts today reminded me of a “Rule of THUMB!” (said with much thunder, echo, and deep voice). The gist of it is “When in doubt, go out.” It means the same as “Go to the balcony” but refers to the time-frames that we’re trading.
I tend to stick with a 15 to 30 min. timeframe but sometimes find myself looking at a 1 minute or 5 minute wondering if this time or that would make a good entry or exist point.
If those things aren’t clear in the shorter time periods then we need to move out to longer time period to gain a longer perspective. In fact, the longer time periods are where the real money is.
Sometimes it’s profitable to drop to a smaller time-frame but when in doubt, go out.
Could You Trade Like Warren Buffet?
August 26, 2011Everyone would like to trade like Warren Buffet. Well, if you really would like to make a lot of money. But just investing in the stocks that Buffet does is never enough. Many investors and traders alike have been led astray by doing so. Consider the the following article. Could you do what Buffet did?
BofA’s Costly Buffett Buffer - via WSJ