In my trading experience of 8 years now, I had tried all that, suffered badly and slowly and steadily I got enlightened. that is to say:
1. always look at only underlying spot chart and take trades in Futures or options, never trade watching futures chart or options chart. this is due to serious whipsaw resulting from slippage of futures or options premium/discount.
my observation is that generally in futures the premium/discount increases in bull and viceversa in bear market (which is good if it is so) although it can sometimes work the other way round also ( this will be bad). In case of options, the time decay affects in addition, making the overall setup very complicated and your stops will hit left right and center even if the spot is going steady.
therefore whatever be the whipsaw variation in individual f and o's generally and finally the spot underlying will gradually pull it to destination.
2. everybody talking about 5 min 15 mins and then compare 30 mins chart etc. My take is that time has no meaning at all in trading other than when market opens at 0915 and closes at 0330. price action may remain within a 10 point range for entire 5 hours or 5 mins or 5 seconds. what really matters is that at whatever time it gets out of that range, you enter the market and then keep your stops steady at a particular value and then change it with price action NOT TIME ACTION. so your stop may remain for 1 hours or two hours at same place and all of a sudden when let us say breakout happens in 15 seconds of 50 points, then your stops which was stagnant fo 2 hours will move 3 or 4 times within that 15 seconds.
hope you got my point
1. always look at only underlying spot chart and take trades in Futures or options, never trade watching futures chart or options chart. this is due to serious whipsaw resulting from slippage of futures or options premium/discount.
my observation is that generally in futures the premium/discount increases in bull and viceversa in bear market (which is good if it is so) although it can sometimes work the other way round also ( this will be bad). In case of options, the time decay affects in addition, making the overall setup very complicated and your stops will hit left right and center even if the spot is going steady.
therefore whatever be the whipsaw variation in individual f and o's generally and finally the spot underlying will gradually pull it to destination.
2. everybody talking about 5 min 15 mins and then compare 30 mins chart etc. My take is that time has no meaning at all in trading other than when market opens at 0915 and closes at 0330. price action may remain within a 10 point range for entire 5 hours or 5 mins or 5 seconds. what really matters is that at whatever time it gets out of that range, you enter the market and then keep your stops steady at a particular value and then change it with price action NOT TIME ACTION. so your stop may remain for 1 hours or two hours at same place and all of a sudden when let us say breakout happens in 15 seconds of 50 points, then your stops which was stagnant fo 2 hours will move 3 or 4 times within that 15 seconds.
hope you got my point