When we think of the passage of time, we often tend to think of it being comprised of smaller chunks that add up to larger timeframes. Each passing moment turns into minutes, which eventually turn into hours, which turn into days, weeks, months, and years. In that sense, each chunk of time is weighed about the same depending on the timeframe in consideration, only to be accumulated into a lifetime of "moments."
So...does that mean time is "fractal" in nature? By experiencing this thing called life, are we just seeing small branches grow into the tree of life, or witnessing the growth tiny patterns form into a snowflake?
I think the resounding answer to that is "No!"
Anyone who has at least kept one eye open in making it through life knows that what you're experiencing on a day-to-day basis doesn't necessarily reflect what you're experiencing over a year, or what you experience this year may not properly reflect the story of this decade in your life.
In other words, different timeframes tell different stories.
I've been doing some thinking lately about the nature of trading different timeframes and how timeframe selection can drastically change both the preparation and execution of one's strategy. It's abundantly clear to me that consistently profitable trading is not simply about consistently executing a good strategy whenever and however one feels like it. To apply fundamental analysis to day trades might prove fatal. A high-frequency trader would be a fish out of water in trying to do what day traders do, and vice versa.
It's therefore critical that a trader not only settle upon a strategy, but keenly settle upon --and stick to--a targeted timeframe associated with that strategy. Mismatching otherwise sound, winning strategies with the wrong timeframe is as flawed as executing a great trading idea at the wrong time. By remembering that time is not fractal by nature (and by analogy, trading timeframes aren't either), you can avoid a world of hurt by not just being in the wrong trade at the wrong time, but avoid the even more painful experience of being in the right trade in the wrong timeframe!
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