Why Can't I Trade with the Trend

I shall begin by placing the first stone......

STEP 1 THE TREND

- Determine if there is a MEANINGFUL TREND present

There are two types.

The meaningful ones:

Downtrend = lower highs, lower lows
Uptrend = higher highs, higher lows

The ones you should ignore (for now) because they require greater
skill to consistently profit from or
simply, the sideway ones:

Congestion/Indecision = higher lows, lower highs (Symmetric Triangle
formations)
Consolidation = horizontal lows/highs

As you get more experienced you can profit off consolidation by fading
support/resistance but for now, stick only to
the meaningful trends.

Again, as you get more experienced you can profit off symmetric
triangles (HL LH) because they tend to give birth
to POWERFUL new trends but for now I would rather you stick to the
meaningful trends.
 
Quote from Flashboy:

Every trend day or period like the last 3 days I always have trouble trading with the trend.

I'm always looking for that turning point so I can hop on for the big score..

I most likely need to work on my plan for trading with the trend.. and force myself to do it until I become more comfortable..

Anyone else have this problem?
More...

Like most trading-related problems, the solution is fairly straightforward:

1. Analyse all your trade decisions, each time you make one.
2. Decide what mistakes you made.
3. Work out the causes of those mistakes.
4. Figure out a way to avoid the causes occurring again.
5. Design and use implementation methods that ensure the causes/mistakes do not occur again.

For your error, it sounds like a pre-exit checklist with a question asking "Is there a trend in place? If so, do not exit until a genuine reversal signal has been given" would help.

Then, you just have to follow your "don't exit a trend until a true exit signal has been given" rule. If you can't follow it, you will keep screwing up until eventually the repeated lost profits get so annoyingly large that your psychology will change and your discipline will improve. Stick at it.
 
You guys realize your responding to comments made 6 years ago? Everyone has different ideas of trend trading. All about your style.
 
Quote from bigb:

You guys realize your responding to comments made 6 years ago? Everyone has different ideas of trend trading. All about your style.
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It's especially funny when you realize that this thread was started by a counter-trender. He was trying to pick tops and bottoms, an act of hubris, foolishness and/or desperation no matter how you slice it.

In order to trade with the trend, first you have to find the trend. When I see stuff like "higher highs and lower lows", my eyes glaze over. By the time you can draw a decent "trendline" (whatever the $&#* that is), the trend is pretty much exhausted, unless you're in a bull or bear market. The real key is find the short trends as early as possible and ride them to the end. Nobody is going to reveal an indicator that does that.
 
Quote from kut2k2:

...The real key is find the short trends as early as possible and ride them to the end. Nobody is going to reveal an indicator that does that.
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not true on two counts

#1: Revealing any true indicator or solid method approach never diminishes its effectiveness one iota, not one smidgeon, not one drop. The idea that someone's "edge" can be negated by public revelation is just an oft-repeated fallacy.

#2: Trend-following indicators exist, they are effective and they can be part of a true cash-collecting machine. BUT the operator of that machine MUST be able to overcome their strong instinct = desire to fade the indicator and counter-trend trade.

Buying into a decline or selling into a rally are the stronger human tendencies than following a known, trusted trend filter tool. So basic human nature itself protects any true trend-following tools or methods by human flawed design :cool:
 
Quote from hank rollins:



think about it.... you never know when the "trend" is going to end, and what part of the "trend" you entered the trade in. if you have a winning trade...you can say---i caught the trend, i am with the trend. a losing trade, obviously you are not with the trend. you only KNOW for sure about the trend after you enter the trade and the trend is directly related to your success in the trade or lack there of.
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You are right, man always select a beautiful chart and tell us how to use trend make money in hindsights
 
Quote from HATEtheRisk:

If you cant trade with the trend, then trade against it.
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Exactly. Countertrend trading strats proven to be more profitable for intraday trading.
 
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