31 Jul What’s the Best Timeframe for Stocks?
What’s the Best Timeframe for Stocks?
July 31, 2023
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Until about a year and a half ago, I never looked at a Monthly chart.
Why would I? Why would anybody?
Monthly charts move so slowly and create so few opportunities. It’s a pointless idea reserved for big, stodgy institutions.
And holy moly.
Here’s the Equity Curve trading $10k of stock each time from 1995-2023:
Here’s the Report:
The numbers look great but one number in particular knocked my socks off.
Take a look at the Max Drawdown from Close to Close. It’s $432. That’s it.
Granted, it started trading in 1995, the start of the great Bull Run.
And look at the win rate: 81%.
Do you see why I was so shocked?
It made me reconsider what real trading is and made me wonder how ignorant I’ve been.
So, have I been trading the wrong way all this time?
Is Monthly really the best timeframe for longer-term trading?
We’ll find out in the next two Newsletters.
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