“An object in motion continues in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” ~ Isaac Newton
The first thing I do at the start of the month, is look at my watch list’s on the monthly time frame only, to see where the longer term momentum is. I am not a long term investor, I am an active short term swing trader, but I still want to know the longer term forces that are in play. I make a list of those areas and then investigate further on the smaller time frames according to my method. I don’t want to think too much about it. The more simple I keep it, the better it works. I don’t want to trade what I think, I want to trade what the evidence is telling me. Are all asset classes over valued in 2018? Of course they are! This does not mean that we sit on the sidelines with our arms folded and not participate. The best gains can still be ahead if we use strict risk management procedures. The same rules apply to stocks, forex, commodities, crypto currencies etc. It’s all the same. I use a combination of technical and fundamentals to determine where to allocate my capital. People often ask me where do I think something is going to be in 12 months time? My answer is always – Don’t worry about where it will be in 12 months. Just focus on where it is now, and the rest will take care of its self. To succeed in trading, you have to learn to quiet your monkey mind, which I will be talking about in coming posts.
These charts are a few examples. I can see at a glance exactly what is going on.