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[Camisa Roxa]

As technical analysts and traders, we all think long and hard about our trade entry
criteria, and put almost as much effort into our exit criteria. This is as it should
be, as good entries will usually set up good exits or take us to our profit targets.
One criteria that too often is neglected is our time criteria, or more accurately,
our lack of time criteria.

Simply put, there is a timeframe that is inherently built into each trade set-up. We
don't set it, nor can it be avoided. It's just there, and smart traders recognize it.
The criteria we use for entry, whether it's a moving average crossover, a bullish
ADX line, or a stochastic sell signal, all have a limited life span. The problem is,
many traders hold the position well after the signal has changed. The trade may not
have been stopped out or hit its target, but the reason you got into the trade may
have completely reversed by the next day. The result is a position that is simply
"spinning wheels", neither going up nor down.

The ultimate risk to a trade that is going nowhere is two-fold. First, the further
out you are from your original signal, the less likely it is that you'll hit your
target. Second, while you may not be losing money, you are sitting on idle money that
could be better utilized elsewhere.

A trade is either going to hit your target or it's not. It usually becomes apparent
within a couple of days which it will be, so don't buy into the "buy and forget it"
trap. At the time you enter a position, set a time limit for yourself. If you don't
hit target (or at least see progress) within three days or so, exit the trade anyway.
You may find that you're getting out of a position that was going to soon work
against you.

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AOL Time Warner (AOL) posted a loss of 45 billion for their fourth quarter, bringing
the total loss for 2002 to 99 billion. This was the biggest corporate loss in U.S.
history. AOL Vice Chairman Ted Turner is stepping down. Exxon-Mobil (XOM) fourth
quarter profits rose to 56 cents, beating analyst's expectations of 50 cents. The
U.S. gross domestic product grew at only .7 percent last quarter. Most economists
were expecting growth of .9 percent.