Over the last 5 or so years, I have consumed so much information about the chart patterns from many books, videos and forums. This ranges from both humble geniuses and arrogant showmen explaining methods to adapt and fool proof systems to follow. My sceptical mindset started collating them together to an overwhelming amount of educational advice on how to set stop losses and determine price targets based on solely Price. But I had little to nothing about the time series, and believe it is an afterthought to most. But if the two axis’ are not treated with equal importance, how can patterns appear?
I believe some focus so much on price, that a 10% gain over 6 week or 6 month are both treated with equal success. Some keep the standard configurations applied to their chart signals, breakout system and momentum oscillators, with few knowing exactly how often a 50d MA interacts with a 200d MA over a given time period. On stockopedia we can set price alerts but no calendar reminders. I just feel many of us miss the bigger questions we should ask ourselves
When do I expect to hit my price target?
Is it something you have thought about before? How long am I going to have my money held in this for? If you are waiting for a price target, is your capital being used efficiently? Is your capital tied up in charts waiting for an unlimited time to hit a target?
I asked myself these questions a few years ago, and I believe I answered them. But like everything you have already consumed in the world of trading, take this with a pinch of salt as I believe planting an idea, actual acknowledgement and self discovery of your own methods is far more beneficial than any of my ideas.
That being said, my answer is the only aspect of any trade that i have full control over is the length of time i hold it for, and because of this, I can strictly standardise it.
I can choose to trade only charts which are most likely to achieve over my given time frame rather than most likely to achieve over an unspecified time period. Putting this strict criteria has completely shaped and focused my trading plan. Portfolio management has turned into Time management.
