Apart from this blog, I have a document which I find myself adding to every few months which is a diary/strategy document. Whenever I re-read this it becomes apparent that I've been a quandary over whether I should hold positions longer term or look to trade more aggressively intraday.
It's been a few years and I hadn't been able to reconcile the two approaches particularly well but in the last week I've realised that the best intraday opportunities usually occur in the first couple of hours of the day while it's often better to wait until later on for confirmation before entering new longer term trades.
So what I'm going to test is trading until 12.30 or 1pm intraday and focussing on the longer stuff for the rest of the afternoon. Obviously, the overnight positions need to be watched at all times and often the best time to close a position is early in the day, but allowing for those caveats I think this could be a workable way to maximise the time and capital I have available.
In fact, I'd noted more than once that I often do well with intraday trading in the morning but get exhausted and make errors later on. I'd also find that I would miss good overnight positions because I wasn't paying attention towards the close of trading.
I'll see how it goes but I'm quite optimistic. I can't believe it has taken me so long to work out that there could be a middle way. I was reading the electroniclocal blog the other day and he mentioned that he usually just trades in the morning and that helped the light bulb to come on.
Tuesday, March 9, 2010
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