Trading Timeframes - questions!

[bottomdollar]

Hi All,
I trade mainly the indices from anything between a quick scalp and a position trade. However, I have a habit of mixing up my timeframes... for example, last week I had a position trade (using the daily charts, 30 and 60 mins to confirm and 5 min to enter) and shorted the FTSE at 4590 which I think in hindsight was a decent entry. However, I kept looking at the shorter time frames and everytime there was a pullback I closed out. Throughout the week I entered again another 2 times.. each time I made a bit but if I just kept the short from the beginning, the gains would have been a lot higher.
I know people say that if you daytrade then you must base all entries using the smaller time frames.. and if you position trade, you primarily base all decisions on the daily chart. However, do these tend to work in general? A daily chart could mean that you've lost a lot of your gains before you see them.. so there clearly must be a trade off.
How do people play it and long term profitability wise, is it better to marry entries and exits with the same time frames? How do other players base entry and exits?

Kind regards
BD

 

[stevem12]

BD,
Try this it helps me, use Daily, hourly, 30 minute, 15 minute and 5 minute to determine s/r for trade, enter trade on 5minute and stop. never look below the time frame you entered on , it`ll only make you jittery. This applies no matter what time frame you use, try looking at a tick chart after you entered on a 1 minute.

You could also try running position and day trades side by side. Don`t take position trade off, but day trade the smaller swings and let the position trade run.
Steve :cheesy:

 

[Racer]

Think about fractals and charts are similar.
I find longer time frames are better to get the overall picture even if I am trading shorter term, but I switch between several.. I have 15 day chart running with 5 day and also the tick chart to get immediate reactions to news etc.
An idea to identify what sort of trade you want to do before you enter it... i.e.,was it meant to be short/day trade or over months?

 

[Fluke]

Stevem12.

Would this work with spread betting, go long say June futures making this your position trade and leave it on.
Then swing trade the cash or May futures,Can you see any reason why it wont work.
I have been thinking about this lately.

 

[bottomdollar]

I try to base my entries by first looking at the longer time frames and then timing an entry down to the 1/5 min charts. I've not planned then whether its gonna day mins or hours or even days.. the sold purpose is just to make as many points as possible and get out as soon as it looks like it's reversing. However, it's the exits which get me.. one of my exits maybe a perfect intraday close as it's reversing but the longer term picture may still be in my direction.. it's drawing this line between grabbing a few points here or holding on for a bigger win. I find this sometimes difficult to do.... we all like to realise profits especially if it's going nicely our way!

 

[axthree]

Srongly agree with this dilema.
If I could have a pound for every time I've got in a stew and exited early I wouldn't bother to trade.

 

[stevem12]

Stevem12.

Would this work with spread betting, go long say June futures making this your position trade and leave it on.
Then swing trade the cash or May futures,Can you see any reason why it wont work.
I have been thinking about this lately.

I can see no reason why not, just as long as when day trading the cash you keep the stake small enough to be below the radar of dealers. otherwise we`re back to re-quotes etc.
Steve

 

[Fluke]

Stevem.
Thanks for your reply ,it's good to have the opinion of some one else.

regards.