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Time Frame

Sticking With the Same Time-frame

November 2, 2009

Since my self-induced weekend portfolio disaster I was looking for another entry into the market on the 30-min chart. That came at 12:16pm today when the 5-min chart and the 30-min chart agreed.

As long as my position doesn’t go negative I’m going to stay with my 43 Nov Put for the day at least. I actually had sold the same put at close on Friday with the thought that you never hold a short-term position over the weekend. So buying back that position was a natural. I got it for $2.02 after Friday’s $2.30 sell. Can’t count it but it was the right thing to do.

Remember, the rule is “Protect Principal First”. Currently my position is up 22 cents but was up as much as 38 cents. I mention this because sticking with the 30-min chart will give me plenty of time to sell at a profit even if it won’t be at a high.

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Keeping Your Eye On The Ball – Trading Different Time-frames

October 30, 2009

This makes the third day that I’m in the same position. So far, it’s paid off. However, today serves as a good example of keeping our eyes on the ball. I really wanted to sell the position when it was in the money by more than it has been since I bought it but on the 30-min chart which chart I’m following it’s not even close.

I’m aware that there is going to be larger swings and more temptations to sell early than on the 5-min chart I normally trade. If I’d sold yesterday I’d made a little money and not suffered the unbooked drawdown that yesterday provided.

It’s a trade-off. I don’t want to over-trade but it sure was tempting. This is why, if we buy on one time-frame we want to sell on that same time-frame. It saves us from constantly second-guessing our own trading rules.

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