Fractal Psychology
Posted: Fri Apr 18, 2003 2:09 pm
Forum Mgmnt,
In another thread we discussed the idea of trading multiple time frames using the same system. You pointed out that the trader psychology would be different across various time frames, so this might not work well (please correct me if I misunderstood your point).
This got me to thinking:
Couldn't trading psycholgy be fractal as well? If I day trade, then my horizon is the single day trading session. In this time I may have breakouts, sideways markets, periods of greater or lesser liquidity, and all of the things that someone trading on, say, a longer-term perspective would have, it's just compressed into a much shorter time. If, for example, it's been a down day, and I'm looking for the market to perhaps open lower with a bit of follow-through the next day, I will have a different perspective than a position trader who sees a long-term up tread, but that's because my time horizon is so much shorter. Thus, my psychology may be analogous to the postion trader using daily charts compared to the trader using, say, weekly charts.
I'm probably not expressing this as well as I'd like, but I'm certainly interested in your opinion (or anyone else who has thoughts to share)!
Dave
In another thread we discussed the idea of trading multiple time frames using the same system. You pointed out that the trader psychology would be different across various time frames, so this might not work well (please correct me if I misunderstood your point).
This got me to thinking:
Couldn't trading psycholgy be fractal as well? If I day trade, then my horizon is the single day trading session. In this time I may have breakouts, sideways markets, periods of greater or lesser liquidity, and all of the things that someone trading on, say, a longer-term perspective would have, it's just compressed into a much shorter time. If, for example, it's been a down day, and I'm looking for the market to perhaps open lower with a bit of follow-through the next day, I will have a different perspective than a position trader who sees a long-term up tread, but that's because my time horizon is so much shorter. Thus, my psychology may be analogous to the postion trader using daily charts compared to the trader using, say, weekly charts.
I'm probably not expressing this as well as I'd like, but I'm certainly interested in your opinion (or anyone else who has thoughts to share)!
Dave