The Case for Weekly Charts: My Approach to Fewer, Better Trades

My Trading Evolution

Trading has been a long journey of learning, adapting, and refining my strategies. When I look back at my progress from 2014 to 2024, the difference is striking. In 2014, I made over 600 trades in a year, chasing daily market movements, only to end the year with a -15% return, even though the S&P 500 gained 11%.

Anybody reading this who is in that position now knows that it is extremely frustrating. You work extra hard just to look back and realize if you just bought the S&P 500 you would be in a much better position.

Fast forward to 2024, and things are completely different. I made just 24 trades, yet my return shot up to 62%, beating the S&P 500’s 16% gain at the time of writing this. This transformation didn’t happen overnight. It came from a conscious decision to change my approach, specifically by focusing on weekly charts.

Why I Switched to Weekly Charts

People often ask why I only use weekly charts and avoid daily ones. The reason comes down to the results I’ve seen from my most successful trades. When I look at what they all had in common, one thing stands out: they were held for several months.

Keeping an eye on daily charts made it tough to stay in trades that long. The constant flow of information and the urge to react to every little move were overwhelming. Each day brought new data, fresh candlesticks, and more reasons to second-guess my strategy. This led to impulsive decisions—exiting or entering trades without considering the bigger picture.

That’s why I made the switch to weekly charts. With weekly charts, I only get one new candlestick per week instead of five. This simple shift cuts down on the chances of making impulsive moves based on short-term market noise. It helps me focus on the bigger trends and the long-term potential of my trades.

By sticking to weekly charts, I avoid getting caught up in daily fluctuations that can throw off a well-planned strategy. This approach has not only boosted my patience but also led to fewer, yet more meaningful, decisions. It’s a strategy that’s allowed me to hold onto trades long enough to see the best possible results.

Crafting a Strategy That Matches My Trading Personality

Trading isn’t just about finding the right strategy—it’s also about understanding who you are as a trader. Over time, I’ve realized that my trading style needed to match my personal tendencies and preferences more closely. Here’s how I came to embrace weekly charts:

By understanding my own tendencies and aligning them with a strategy that suits me, I’ve improved both my trading results and my overall experience in the market. That’s why weekly charts have become such an important part of my approach. This approach aligns perfectly with Stan Weinstein’s Stage Analysis, which helps identify the major stages of a stock’s lifecycle.

Why Less is More in Trading

Trading success isn’t just about mastering the markets; it’s about mastering yourself. My journey from overtrading in 2014 to a more refined and focused approach in 2024 shows how important it is to align your trading strategy with your personal strengths and weaknesses. By embracing weekly charts, I found a way to cut through the noise, avoid impulsive decisions, and zero in on what really matters—long-term trends and meaningful trades.

This shift wasn’t about discovering the perfect indicators or strategies; it was about simplifying my approach, focusing on the essentials, and developing patience. Weekly charts have become more than just a tool for me—they’re the foundation of a trading philosophy that values quality over quantity, and long-term gains over short-term satisfaction.

If there’s one lesson to take from my trading evolution, it’s this: sometimes, less truly is more. By reducing the number of decisions you make and keeping your eyes on the bigger picture, you can achieve results that not only beat the market but also bring you peace of mind. Whether you’re just starting out or looking to refine your own strategy, consider the power of weekly charts. They might just be the key to unlocking your trading potential.