You Can Overdo It

I stated earlier in this chapter that you should consider varying time frames when putting together your trading ideas, but make sure you don’t overdo it!

How can you overdo it? You can look at so many time frames and indicators that you end up seeing both bullish and bearish features on every security you analyze. You can end up with so much information influencing your opinion in both directions that you develop analysis paralysis, and you can’t make a decision.

Don’t overcomplicate your trades. Look at a few charts, draw your conclusions, and make a reasonable move. And don’t forget to place your stops wisely! (For more information on stops, see the chapters with examples of trades starting with Chapter 7 and running through Chapter 15.)

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