Is this seriously what trend traders do?

[IronFist]

It's not about "S/R levels" as most retail traders use the term today; it's about those levels at which important traders buy and sell. These generally have nothing to do with what retail traders draw on their charts.

As far as knowing what the market has already done, that's the point. At what level do important traders take profits? At what level do important traders re-enter the market? If you've never looked at this, I suggest you do so. At the very least it will enable you to take a bigger chunk of your profits out of the market rather than just sit there like a deer in headlights and wait for price to sink to your stop.

What are you doing to know where important traders are taking profits?

 

[IronFist]

I don't think so. Small stops to protect your money will throw you out of the market, not allowing you to catch any trend. They'll also eat your account up, in no time.

If you don't know what you're doing, don't trade!

I feel like you weren't responding to my post.

 

[Sprout]

What are you doing to know where important traders are taking profits?

On any timeframe look for the volume peaks. Drill down and again look for volume peaks. Look for the trends and the trend segments. There was a right side and wrong side of the market to be in at the turns. at the turns look on the T&S. Filter for at least 50 contracts and above. Note the price action at those levels. Notice the difference between clusters of price and the empty levels in-between.

 

[HobbyTrading]

I don't use these markers but I agree - each trade should be treated on its own internal merits. And I do use a type of trailing stop as well as a TA dynamic exit signal. But its been several times now that I've seen my basket of trades just tumbling one by one from a hefty total gain to something much less impressive. I've never seen anyone recommend dumping the whole basket to bank what's on the table - does anyone admit to doing this?

You mention that you see your basket of trades tumble, as if they were in unison. That gives me the impression that the positions were strongly correlated with each other. Diversification could have helped here, such that their trends would not change at the same time.
(Sorry for being late to the discussion)

 

[tomorton]

You mention that you see your basket of trades tumble, as if they were in unison. That gives me the impression that the positions were strongly correlated with each other. Diversification could have helped here, such that their trends would not change at the same time.
(Sorry for being late to the discussion)

Your impression is correct, but necessarily so when trend-following. There is no real diversification available if trend-following in forex or equities so this would be a cul de sac for me to explore.

 

[HobbyTrading]

Your impression is correct, but necessarily so when trend-following. There is no real diversification available if trend-following in forex or equities so this would be a cul de sac for me to explore.

You think so? Your decision to use a trend following strategy exposes you to lack of diversification? There is no way out of this?
I guess it depends on account size and the choice of instrument(s) whether diversification is possible.

 

[tomorton]

You think so? Your decision to use a trend following strategy exposes you to lack of diversification? There is no way out of this?
I guess it depends on account size and the choice of instrument(s) whether diversification is possible.

I do think so. Of course, I could diversify more into commodities, overseas equity markets, bonds etc. but that seems like taking on higher risk per instrument in order to reduce risk on more economically tradable instruments, so not something I'm keen on. I don't put faith in diversification in trading anyway, although an essential element if you solely invest. It was a surprise when I started out in forex that if I was in say AUD/CHF, it would move based on something happening to USD or JPY.