Quote from jnbadger:
My primary tools for looking for manual/semi-auto stock trades have always consisted of 3 linked charts. A 1 minute, a 5 minute, and a daily. Sometimes I'll punch a 15 minute in there for a longer perspective, but not very often. And then I would/will often use the one minute chart for entry, and then use a combo of the 1 and five to get me out.
I think I have always thought there was some type of advantage to using such a short time frame. Those possible "advantages" being a perceived notion of tighter risk control, in addition to seeing many more trades on a 1 minute chart. I am somewhat of a believer in fractals, and I subsequently believe certain behavior occurs across all time frames, so I always thought a one minute chart would mean "more is better".
Even as I type this, I am beginning to realize more and more what a ridiculous idea that is, especially since the proof has been in the pudding lately as I am trying to completely get rid of one minute charts on my screens, and have been basing almost everything on simple 5 minute charts. Hell, I even used a 30 minute chart to help me let my profits run the other day. Not only because I am developing more patience as i get older (45 in July), but the risk/ reward is better, the slippage isn't as important, and although my commissions are already negligible, they matter less and less now.
But the point of the thread is thus: Following 1 minute charts, and all of the 1 minute alerts my scanner picks up is just getting to be too f...ing exhausting. By lengthening my time frame, it just seems more relaxing. Not only because of the advantages listed above, but because of not being driven insane by the perception of so many missed opportunities, especially early in the day when alerts and patterns and such are flying at you at light speed.
Many years ago, late 90's I think, I paid Mark Douglas to talk to me on the phone for an hour, and he basically talked about what is in his books. But one thing I specifically remember is him asking me what time frames I look at. I told him I primarily looked at 1 minute entries. He asked if I was insane, and I remember responding, "probably". Then he went on a rant as to how one minute charts are just noise, and how I am shooting myself in the foot by using them. I guess I had to learn that one the hard way over time.
Well this is way longer than I thought it would be, but I guess it's my way of standing up in a large room and saying, "Hi, my name is jnbadger, and I am a one minute chartaholic. In 24 hours, I will have been looking at time frames of no less than 5 minutes for one day."
(Please keep in mind, I trade the crazy movers during the day. When I put on the occasional index trade, it is based on a 15 minute chart, so this rant does not apply to the /ES, SPY, or any other type of index trading.)
Thank you for your time.
