Let the market come to you, and get in the trend early.
If your timing system is based mainly on buying when a security's Slow Stochastic (5,1) goes below the 20 line and then crosses above 20, it may take some patience to find occurrences of this situation. Say you give up waiting for such a new trend and get in an established one that you had overlooked. If its Slow Stoch is already up to 80 or more, you've missed part of the upturn and are that much closer to the inevitable sell point. It would be better to spend the wait time figuring out how to better scan the universe of securities to find more candidates that work well with your system.
The following are Ed Seykota quotes:
"You have to notice trends early. If you wait and only participate in them when they've gone exponentially vertical, it's too late. Look for a fresh trend."
"The lizard ... just hangs around on the rock ... and waits and waits and waits ... for his pattern to show up ... and when a bug comes along, he makes his move, right from the gut, without thinking about it."
Comments
Thanks for the tip. It's much appreciated.
I'm not a trader but I still have the $2.00 bill that Ed Seykota sent me years back when I joined the tribe. "If I miss a set-up I await the next." Perhaps, it is time for me to revisit my spiff investing theme and 5,1 it.
Please keep posting.
Old_Skeet