What Time Is It?

2016-10-24 | Bruce Marshall

Do you consider yourself an investor, a long-term trader, or do you consider yourself a day-trader, a swing trader, a scalper? Why do I ask and why does it matter? The reason is that as we all know, making a profit trading the market is not always easy.

Making profits consistently over time is even harder. We all know the market can be unpredictable, but why do most people struggle with this? I think one reason is that most people are all over the board on their trading time frames. I know traders that will trade 10 times before lunch every day and others that won’t trade 10 times in a week. Still other traders don’t trade 10 times in a month and longer term traders may not trade 10 times in 6 months. Which category do you fit in? If you are trying to trade all time frames all the time, you will never master any of them.

So how can you increase your odds? Narrow down your Time Frame! If you are best at trading short term charts and scalping a few points quickly, that is your niche and you should stick with it. Think about what you enjoy and what you are good at. If you are a short term trader, do you really care about where the S&P will be 2 months from now? On the other hand, if you are a longer term trader, do you really need to know what is going on with 1 minute and 5 minute charts?

The point is to block out the noise and focus on your bread and butter. What type of trading do you enjoy? What type of trading are you profitable and consistent with? Once you sit back and can focus on which type of trading you really want to use, you can gain clarity and relieve some stress of trying to figure trades for every time frame.

For me, I trade medium term time frames which I define as typically 30 – 60 days out. Over time, and after trading many different styles, I realized this is what I enjoy and this is where I am most consistent.

Block out the noise and focus on your own trading time frame! If you would like to see some of the medium term trades I use, you can go to Bruce’s Income Advisory Service (BIAS) here.