All traders are trend traders :)

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

 

What if you're not trading direction?

 

All traders expect/want price to move to their profit targets but all traders do not expect a trade to trend after they enter the trade.

For example, if a trader has a profit target of 5 points and the trade moves to the profit target...trader exits the trade with a +5 point profit even if it reached that +5 profit without being a trend.

The word "expect" is not a good approach to trading while knowing a trend to a high-frequency trader may not be a trend to a scalper. Just the same, a trend to a scalper may not be a trend to a day trader. Just the same, a trend to a day trader may not be a trend to a swing trader. Just the same, a trend to a swing trader may not be a trend to an investor.

My point, just think about your profit target.

wrbtrader

 

Trading is no much more than simply catching a trend.

 

i used the word "expect" because traders don't know in advance how far the trade will move in the trade direction. it could move to their profit target or anywhere between their initial stoploss and their profit target. we are both saying the same thing about scalpers, daytraders, or swing traders. its all a matter of how long you "expect" to be in trades.

"My point, just think about your profit target." i agree that one consideration is to think about the profit target prior to the trade, but there are other factors you have to consider prior to taking a trade. hence, the question i posed.

thanks for your comments on my post. what questions do you consider/answer prior to entering a trade. the 3 questions i posted are basically what i consider prior to entering any trade.

cheers
toucan

 

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

 

i don't think its about catching trends. everyone trades differently. some trade trends, some trade against a trend, some trade reversals or ranges, etc. but the bottom line is when you are in a trade, you think price will move in your trade direction. if you think price will move in your trade direction, then prior to entry, i believe you should at a minimum think about price direction, start of price direction and how long price will move in the direction of your trade.

what do you consider prior to taking a trade?

thanks for your comment
toucan

 

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.

 

I think about all of that, as well as ....... trends are not always present. In the timeframe one trades in.

And no in my case I don't adjust my preferred timeframes. I wait for price to trend again however long it takes.

 

thanks for your point of view. we have similar ideas about the fuzzy nature of trading that go beyond just a hard profit target.

cheers
toucan