DB & board followers:
You could spend $3,000 for books and another $6,000 for dvds, cds and yet another $15,000 for seminars, airfare, meals and hotels and not find a clearer, more succinct statement of purpose, strategy and practice than this:
"The very first thing you must do ..... and nothing else has priority over this ..... is to determine the time frame you wish to hold a position.
Once you determine the time frame, whether it's an intraday trade, swing trade, intermediate term trade or long term trade, you then pull up a chart for the time frame in which you wish to trade.
Your buy and sell strategies should be designed around your time frame and then the trend within that time frame."
There it is, in a nutshell--timeframe and trend.
Now DB goes on, again in succinct, easy to comprehend prose, to illustrate exactly what he means:
"[TIME FRAME] I'm a swing trader. That means most of my positions are to be held for a 2-5 day time frame. With this time frame in mind, I must look at hourly and daily charts for my set ups.
If I were swing trading XLE, the first thing I would notice is that price is in a down trend. When in a down trend, I look for shorting opportunities, not long opportunities.
[SET UP] So, keeping that in mind, I would be looking for a short set up. The 20 day moving average is declining, it is also below the 50 day moving average. This confirms your down trend.
In a downtrend, I want to short into major resistance. That means shorting into the 20 or 50 day moving average.
[ANALYSIS--it doesn't have to go on for pages] You bought your position going into resistance. This is a high risk, low probability trade.
Well done, and oy vey, vot a good price for those who want to learn.
Kb |
