 |
 |
| Trend relativity errors steal more trader profits than any other mistake. You have committed one when you prepare and analyze in one time frame but execute in another. Your good position in one time frame is often a very poor one in the next larger or smaller one. For example, if you want to swing trade NSCP for 1-3 days, you would analyze the 7 bars before the breakout and choose an entry number very close to the violated down trendline. You would then enter your trade right at the gap open. Unfortunately, if you plan your trade using the 4-month trend from July, your buy signal comes the night after the gap and you jump in the next morning, just as NSCP reverses violently. Investors can afford to make frequent trend relativity errors. Traders can't and still survive. |
|
|
