All traders are trend traders :)

[ZBZB]

Is mean reversion a trend?

 

[Frederick Foresight]

Is mean reversion a trend?

Isn't it?

 

[toucan]

Is mean reversion a trend?

i don't trade mean reversion, but when you do, you must expect price to move in your trade direction, ie trend direction.

cheers
toucan

 

[hilmy83]

All traders have their own trading process, but after they enter a trade they “expect” price to move/trend in the direction of their trade. they could expect price to trend just a few ticks if they are scalping. They could expect price to trend minutes or hours if they are a day trader. Or they could expect price to trend for days if they are a swing trader.

Each trader’s process must answer the following questions before they enter a trade:

1. what is the trend direction they are going to trade?

2. Where is the beginning of that trend?

3. How long do they expect that trend to last?

How do each of you answer these questions before you enter a trade?

thanks
toucan

Coin flipper traders would disagree

 

[2rosy]

my thought is that once you are in a trade, you think price will move in the trade direction you chose when you entered. prior to entry, i ask myself what direction is price moving in, where did this price move start and how long do i expect this price move to last.

what do you think about prior to taking a trade?

thanks
toucan

Buy cheap. Sell expensive. But I am less than 5% trader, if that

 

[toucan]

Coin flipper traders would disagree

good point

 

[Frederick Foresight]

Coin flipper traders would disagree

Until they run out of money.

 

[wrbtrader]

The price trended to the 5 points, didn't it? It just maybe didn't continue beyond that point. One man's trend is another man's noise.


Maybe it's just my own limitations talking, but I think having hard profit targets is asking for trouble. It's akin to prediction, which I personally have never been good at. I think that identifying a low-risk entry point (by each trader's own definition) that potentially identifies a balance-of-probability movement in direction for at least a couple of price bars or so (dependent on each trader's time frame) is the best that I can hope for. Beyond that point it comes down to managing the trade in real time rather than pursuing preconceived price targets. I'd love to be a visionary artiste, but I have come to terms with the fact that I am just a journeyman.

Now it's too philosophical considering the thread starter posted no charts and did not define what was a trend on the chart.

Regardless, I never go anywhere without knowing my destination point. Simply, I don't take trades without knowing my profit targets and stop loss although I may exit a problematic trade before it reaches a stop.

Just the same, I may exit a problematic trade before it reaches a profit target because shit can happen between point A (departure) and point B (destination).

wrbtrader

 

[Frederick Foresight]

Now it's too philosophical considering the thread starter posted no charts and did not define what was a trend on the chart.

Regardless, I never go anywhere without knowing my destination point. Simply, I don't take trades without knowing my profit targets and stop loss although I may exit a problematic trade before it reaches a stop.

Just the same, I may exit a problematic trade before it reaches a profit target because shit can happen between point A (departure) and point B (destination).

wrbtrader

I think an argument can be made that having a profit target is akin to calling a turn well in advance, in the context of one’s time frame. Why else would you exit at a profit target absent any additional consideration? The underlying assumption is that the market will likely change course at that point, otherwise it makes no sense to exit on that basis alone. And I can tell you that calling turns in advance is something I cannot do.

 

[wrbtrader]

I think an argument can be made that having a profit target is akin to calling a turn well in advance, in the context of one’s time frame. Why else would you exit at a profit target absent any additional consideration? The underlying assumption is that the market will likely change course at that point, otherwise it makes no sense to exit on that basis alone. And I can tell you that calling turns in advance is something I cannot do.

Profit targets should be based upon the performance of your trade strategy...not calling a turn in advance.

For example, if your trade strategy averages about +5 points (your destination)...why would a trader set a profit target of +20 points in hopes of catching a trend ?

A profit target doesn't imply you must exit at + 5 points or any other target your strategy has identified but it does imply when you reach that target...you need to do another assessment to determine whether to take that profit or stay in the trade because of something had showed up between point A (departure) and point B (destination) that would merit staying in the trade a little longer beyond the profit target (destination).

wrbtrader