Trading in the daily timeframe can result in a seemingly overly extended hold.
We took the German 30 (DAX) short some weeks ago anticipating a decrease in price.
We were very early. The index has hovered at its current value since the 7th of November.
At the start of this month, the value dropped (encouragingly for us) but has gradually ascended.
With yesterdays positive employment results in the USA, the S&P 500 recovered well but closed below last months high.
A weakening of the S&P often has a direct correlation in the movement of the DAX.
We are anticipating that this trade may not play out until the New Year.
We were also early on the daily chart with shorts on each of USD/JPY, EUR/JPY and AUD/JPY.
However, last week each of these pairings moved our way encouragingly.
We continue proactively with intraday trades too — these days more routinely with the 30-minute to four-hour charts.
Such charts keep our stops out of much of the daily noise of news events and on average takes several days to complete.
You will recall that the 5-minute chart was our big favourite for some time. A great daytraders instrument, but the results (for me anyway) were not as significant as what we seem to be able to achieve using a 30 minute, one and four hour and daily approach.
For next year we plan to expand into stocks and shares with part of the portfolio and a weekly technical and annual fundamental mix. More of that later.
As the Xmas break rushes towards us, may we wish you all a wonderful time and, for each of us, a prosperous New Year.