Time
One of the challenges of the trading is you just feel like you’re in someone else’s time. You waiting for the market open or you’re waiting for a volatility dead spot to clear out. You waiting for a Federal reserve chairman to speak or economic report to hit the wire. Similar to certain sports like surfing that is contingent on the weather it can be a bit of a waiting game.
This isn’t necessarily a bad thing It’s just something you have to consider and deal with. If you have a losing trade do you need to be patient to make up that loss later for the time is right. If you want to get aggressive you may have to wait until the time is right.
Estimating this time can be pretty difficult especially when there’s other things you need to be doing. It’s also why it’s important to make sure you just have your level set, on a time frame you feel comfortable with so you can walk away.
Timeframe
If you want to get aggressive and trade a short-term pattern, know that you might not be able to walk away from the monitor as easily.
Once you pick a time frame it’s usually a good idea to stay there trade somewhat a lot sizes similar time frames similar patterns. Trading an instrument on a weekly chart versus a 512 tick chart are two extremes. Time needed to let the tree play out in the stop loss allowance will give yourself along with the profit potential make these dramatically different trades.
I know for me I don’t have unlimited day trades so if you really do looking at the monitor 2:30 knowing that I’m looking for an opportunity to get in before 4:00pm and hold overnight. Or I just back up my timeline entirely like 4 hour chart. Or don’t even play the forex markets.
Lost Time
It’s easy to think about profits and loss stop levels take profits. Time is just such a crucial element. Especially if you’re trading options It’s not only do you need to be right but you need to be right at the right time. “Lost time is never found again” is a quote by Ben Franklin’s in Way to Wealth.
If you’re up and you get quick money more than you’re expecting faster than you’re expecting. Booking the profit and patiently waiting for the next strong opportunity is better than losing your profit, or letting the trade drag on forever.
Time is Money
More capital bigger lot sizes means more leverage for your time.
There’s opportunity cost for time. If you’re going to put on the leg work for research in the trades being patient it’s good to have a big enough steak so when you are right it’s worth your while for the sake of time.
It’s pretty demoralizing to put in a lot of time and not have anything to show for it. Even if you have great profit and loss metrics good risk adjusted returns If you’re not really bringing home the bacon then what’s it matter, especially when you can be doing other more profitable things.
An hour a day.
Options at the close.
Trading is a nut I would still like to crack. Can’t spend too much time or let it be a distraction.
Being right but early (so your wrong) only to have the move you were expecting finally happen but you watch from the sideline. Ouch. 2020. PTON, SPY, IWM.