And let's not forget that the markets can easily move 1000 points in a day; and this is what scares me. Think about this: If we have a flash crash how can you flash cash? (Study. Prepare).
I use the TRADE-MAP approach when I look at financial instruments. Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP: 6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance.
I try to study the markets and I try to trade accordingly.
I guess Mark Twain said it best: "I am more concerned about the return of my money than the return on my money."
I also chart the markets because it is a challenge. I learned a long time ago to study, because:
"The difference between genius and stupidity is that genius has its limits." I hope this has been helpful and informative. May all your trades go well. Don.