We never know when our big winning trade will come so we have to take good entries. I never know if I will be stopped out the same day or a month later. I am not a predictor, my money is made by riding a trend in whatever time frame presents itself. My January trading was one of the weirdest I have been through in quite awhile. While individual stocks in my trading account were whip sawing, chopping, and reversing back and forth my longer term investment account was just chugging along profitable day after day.
At the end of 2012 right before the fiscal cliff verdict was reached the $SPY reversed wildly expanding its daily range candlestick through three days worth of trading ranges and ended above the 5 day ema. With this reversal I decided to dust off my old retirement account and take a $227,464 position in $SPY using an S&P 500 index fund. I am very conservative in this account and only shoot for 10% annual returns. This account is all about conservative growth, I hope to not touch the capital for another 10-20 years. Amazingly and against all odds the $SPY took off like a rocket and did not hold a breach of the 5 day ema at the end of the trading day until a month later when I exited with a 5.2% return and a $11,848 return in one month. I did not see that coming I was just following the trend. You just never know which trade will be that big winner.