If you read me on Trader-X, you know that I traded longer time frames and even some swing trades. I still swing trade in my longer-term account, but in my day trading account I tend to focus on 5-minute charts.
If you were an avid reader of X, you know he focused mostly on 15-minute charts, and often made reference to the danger of trading faster time frames (5, 3, 1-minute charts). I agree with that, and think that anyone new to trading should concentrate on longer time frames and slower charts - that way, you have more time to react and make decisions. I did that for many years, and slowly worked my way to 5-minute charts which is where I feel the most comfortable.
The backbone of X's trading is Fibonacci principles and Candlesticks, and I incorporate them into every aspect of my trading as well. But I also look at other indicators - namely the open and standard Pivot and Swing points. Finally, I incorporate a few simple Moving Averages into my trading.
I will post some charts in the near future as I work to find my rhythm as a Blogger. I don't know if I will post daily, or just a few times a week. I don't want the Blog to control my life and thus get burned out quickly, so my initial goal will probably be 3 or 4 posts a week.
Now to movies - "I Am Legend" was amazing. Will Smith is a great actor, and his performance rivaled Tom Hanks in "Castaway" - Hanks spent most of the movie talking to the volleyball, and Smith spent most of the movie talking to a beautiful German Shepherd. I really enjoyed it - it kept me on the edge of my seat and the special effects were fabulous. I highly recommend it.
As far as rentals - check out "The Kingdom" for a good story and some nice action, and "Superbad" for an entertaining and fun time.
If I don't post again before midnight, I want to wish everyone a safe and Happy New Year. If you are driving, don't drink...if you are drinking, don't drive. Those are my only two rules.
7 comments:
Tom~
Nice to have you back. I caught the X blog after it was over :-( , so I was naturally looking forward to your postings. (I have to say that I learned a lot by studying the charts posted at X site. Thank you!)
Happy new year!
anarco
I am very excited about your blog.
hi tom, in reference to your use of pivot points, i know that x was mucking around with pivot points as a filtering tool at some pooint in the past. i gave them a bit of try using Metastock on the London SE running my gap scan through the R3-S3 pivots over two months worth of data. i was pretty non-plussed by the results, though in qualfication the study i did was probably open to criticism. essentially what i did was compare stocks hitting the fib 38 ext with their position on the P-R3 scale at both opening and closing prices on the first 15 min bar of the day. Conclusion: chucking dice probably would have given me the same result. interested in what your views are in their use as a filtering tool.
Tom,
I have been looking at some beta groups: airlines solar brokers fertilizer... and very intresting as for the most part they fly togethor within hte group. Alot of fading the gap and reversals. any thoughts about group trading? Also notice gap downs seem to be easier to trade lately as are less choices and better charts. Thanks for being back!
I Am Legend was suprisingly good. they broke the picture up with flashbacks, so it wasnt will smith solo all of the time.
if you havent seenit, Juno is a good flick.
hi bl, in regards to group trading
i was playing around with it a little bit about a month ago I didn't do enough back testing to get any conclusive results but the ones I did get tended on the positive side, though not outstanding. I have a feeling though that from the perspective of day trading gains might be minimal. In metastock its a relatively easy thing, the hard part is breaking the equities up into meaningful groups. But it might be a bit tougher in some of the other platforms though esignal has a pretty groovy sector scan setup.
I just saw the latest Nicholas Cage movie, National Treasure I think. Enjoyed it, although for some reason, Cage, Ed Harris, and Jon Voight all looked REALLY, REALLY OLD. Thank goodness I am staying the same age.....LOL!
-Formerly ADD Trader
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