Big Swing

"I always had or felt that I had to make my daily bread out of the stock market. It interfered with my efforts to increase the stake available for the more profitable but slower and therefore more immediately expensive method of trading on swings."
- Reminiscences of a Stock Operator, Chapter 8

Daytrading is profitable, but it can take away one's focus from the more important pursuit of catching the big move, or swings in the market.  I always felt like money came easier when I anticipated the coming intermediate term trend and rode it for all its worth.  The current trend is clearly up, but we've been going sideways for a few weeks, and a new directions seems to be emerging.  I want to catch the next 60 points.  In order to do that, I have to ignore the next 10 points, and not let it distract from the bigger goal of catching the next swing.  Which I believe to be down.

On Friday, I underestimated the strength of this market and the power of momentum.  The momentum of this market is still up, so traders will not panic easily.  I paid the price for my errant call.  Now its time to wait for my next play.  I will cut down on my daytrading so I can focus on positioning myself for the next swing.  It may be more immediately expensive and slower, but it will eventually be more profitable.  It should also prove to be less stressful as I won't sweat over a few point move against me, like I do when I'm daytrading.  The money is made in catching the big move, not a few little moves here and there.