One of the key issue that one should sit and think deeply is to understand what is the objective and term of reference when one decides to walk in the financial markets.
What is the TIME factor, the term of reference one intend to hold on to a position committed. Are we talking about days or weeks? Or are we talking about minutes or hours or a few days?
A price scalpers will be looking at microscopic trends or minutes, hours or a few days at most. On the other hand, a trend trader/investor will be looking at days or weeks sitting on the positions.
Once one is able to distinguish which group he or she is classified, the next obvious choice is to select the product(s) to take positions.
Yes, we can have a set of BASIC common ordinary rules but we will need another set of extra ordinary rules when the trend goes off !!! Which I call the cruising and the turbulent trend.
Different books and proponents will advise differently. But we need to go back to basic. The essence of the market is PRICE axis... TIME axis ... and TREND drawn or plotted.
We all make profit only if the price trend behavior move in accordance to our expectation. Trend is NEVER uniform or move in STRAIGHT line. It move in a haphazard zig zag manner which seems random. To a seasoned veteran, we are only interested in the direction and continuity. It doesn't matter if the price zig zag all over as long the underlying trend is intact,
There is no point of thinking about all the wanders and greatness if the very basic price-time-trend is not understood and appreciated.
Most of my gains are made from weekly trends unfortunately that is the truth.
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