When trading the trend....

[knifecatcher]

Quote from jsmooth:

I really like the Wilder's DMI (ADX) technical indicator.

Doesn't that just kinda tell whether the price break out or not (no longer overlapping)? If I see price breakout strongly ADX will go up after the fact... but it doesn't really provide new information??

 

[murray t turtle]

Quote from redwagon:

for the successful traders, do you guys get more shares when the stock pulls back or do you take your profit and try to establish a new position when it continues trending.

For example if the stock is downtrending and you get short at 19.50, it drops 5 cents but it looks like it is going to pull back, do you get out and look to short again. Or do you lose some of your profit as it retraces (you don't get ANY shares out) and you short more.

I have a hard time holding on for big winners because I hate lose the profit I just made. How do you guys hold for a bigger profit?

Do you just not watch it?

===========
RedW;

It depends on several things;
take liquid markets like SPY, ES.
5 cents is usually just noise in SPY, unless its in a sloppy sideways trend,non printable noise for sure in ES, minimum tick=00.25

So while dont like to give up a profit in intraday trading;
=======================================
5 cents is noise ,not a trend. 00.25 is noise in ES, but actually took that number earlier this week, cause dont want a profit turned into a loss & looked like it wasnt going to hit target

A scalper may use that nickle target , my scalps are usually failed trend moves .LOL

On ES enter a profit target in IB traders workstation for a certain number of points like today;
& may RE-enter ,later.a smaller or larger target depending .........

Or may exit for a predertermined loss like earlier this week in ES

Experience , moving averages, more years the better to id a trend/friend;
PSAR [parabolic stop & reverse]helps, not used in a mechanical way, but as a principal , of SNUGGING stops as time gets closer to end of day,flat in ES.

Wisdom is profitable to direct

 

[murray t turtle]

Quote from spike500:

The trend is the major move in a certain timeframe. But unfortunately prices don’t go straight forward in one direction, there are always pullbacks. So if you want to take bigger profits you will have to stay in a trade until the trend is finished. If you hop in and out all the time you will, with high probability, miss many big moves.

Being disciplined and willing to give back small amounts to the market are essential to take advantage of big moves. You must be able (mentally), to stay in a trade until the signal to close the trade. There are no gains without pain. When in a trade, NEVER calculate your profits, just follow your system and get out when you have to, not when you want to.
This problem is one of the major reasons why people are unsuccessful. They let emotions take over.

=======================

Helpful points;
and another way to identify a good trend in liquid markets like ES,SPY, the better trends dont pull back much- long or short.

Dont consider a sloppy trend to be a good one even if it ends up making a good move;
lots ,lots,lots of study of average ranges, of hourly candles....,
can also help in letting resason over rule emotions.

Kick it out if its not working right; ,or starts getting sloppy, especially late in day , if the plan calls for daytrading.
Plenty of opportunities in liquid markets