Recently I was walking the streets of Manhattan, looking for my hotel. I thought I knew where I was going, identifying some landmarks and asking people for directions, but in the end I was lost. I tried one more path but that was unsuccessful and didn’t lead to my destination. What was I to do? I noticed a few feet away from me was a bus stop and on the wall was my solution: a complete map of Manhattan. You see, the map gave me a very big picture view of Manhattan which I was not able to see or comprehend from street level, as I was focusing only on my near-term surroundings.
If you are a short-term trader making buy and sell decisions on a five-minute chart without paying attention to where price is in the larger time frame, my guess is that you are losing money. The key to proper low risk, high reward, and high probability trading and investing is having a complete view of both the larger and smaller time frames of the market. This allows us… Continue Reading
