A market veteran like me walk through market with good, bad and ugly over 38+ years adventure. What astonishes me is I did not expect my journey to last this long and enjoy the journey with mix feelings.
38 years is NOT a short time but almost half of my life. Many would not last this long in the market in fact many probably end up as fallen heroes!!!
I am not celebrating but to sit back, reflect upon what I could and should have done differently given the benefit of hindsight.
All of us who are market participants has ONE and only objective that is to MAKE MONEY or PROFITS.
Rather than celebrating success and longevity in the market, I am grateful that I survived this far and able to take this challenge 38 years ago without any clue where I am heading and what lies ahead. The journey and path was and is NOT a straight road but fill will all sorts of unexpected events. Most importantly, I manage to overcome each and every obstacle keeping my composure and mental temperament intact.
My ingrained behavior of learning, disassemble and reassemble any issue or object help me to see things differently and develop new methods to solving a problem. Most critically my impartial mind and non-bias helps me to see a problem as opportunity.
Irrespective the past or the present and the future, I know there are and always be opportunities in the financial markets. How can we benefit from this financial market turning it into a money printing machine. WE ARE ALL ATTRACTED TO THE MARKET DUE TO PROFIT POTENTIAL and NOT ABOUT LOSSES/RISKS
I accept that I am NOT going to nail the TOP and BOTTOM of a trend right on the dot. I will NOT repeat the mistake of my initial years focusing on predicting TOP and BOTTOM. My one and only objective in the market is TO MAKE PROFITS and NOT FORTUNE TELLING.
The one and only way to make money in the market is TO FOLLOW and RIDE the TREND. As simple as it logically sound this is something many tried to crack the market code and only few succeeded.
The key word is TREND, FOLLOW and RIDE. Once we can define and understand these 3 words, more than 50% of the success equation is solved.
Irrespective of whatever financial data we read, price will react in a TREND form display as PRICE (Y-axis) and TIME (X-axis).
Most important is WHAT IS THE IDEAL TIME FRAME for the price time chart?
1min? 5min? 15m? 30min? 1hr? 2hr? 4hr? 6hr? 8hr? 12hr? Daily? Weekly? Monthly? Quarterly?
In my opinion from my past experience, selecting the CORRECT time frame according to our strategy will decide whether we can stay in the market alive and make profits.
When I started charting (1994) the only time frame available on the charts and data supplied was daily data FORMAT which means I can only see daily - weekly - monthly chart. Later post 2000, intra-day data charting were made freely available to subscribers. Charts lower than daily is ONLY good for intra-day short term traders. Selecting the time frames for one's chart analysis in conjunction with your trend system will be VERY critical and main determinant to your success.
Understanding how the indicators relate across different time frames give one a grasp of the trend performance at different time frames.
When ONE time frame is selected as the "anchor", it is advisable to have one lower time time on the left and one higher time frame on the right making 3 charts. What if TWO time frames becomes the "anchor" still one lower time frame on the left and one higher time frame on the right making it a 4 charts.
What about 5 time frames? Yes that is also possible with ONE anchor and 2 lower time frames on the left and 2 higher time frames on the right.
More importantly is the anchor time 1 or 2? One need to adjust and select according to one's preference and comfort.
This help one to understand the trend development in motion across different time frames.
How does one follow and ride the TREND ?
to be continued .... PART 2
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