Is this seriously what trend traders do?

Discussion in 'Trading' started by IronFist, Sep 22, 2017.

  1. 777

    777

    I find you have indeed done serrious studies, studying and thinking in this area.

    Look forward to checking out your work.
     
    #11     Sep 22, 2017
  2. Chris Mac

    Chris Mac

    Are you talking about scalping or trend following?
    What a trend trader do :
    1 know if any asset / equity is in an early cycle/stage (1), advancing (2), maturing (3) or declining (4)
    2 buy breakout in stage 1/2, buy throwback in stage 2/3 and sell pullback/ breakdown in stage 3/4

    Basic in theory, complex in practice. Why ?
    - most people / investor / trader are unable to see the big picture and really don't know what is a trend or a trading range.
    - following the trend is not following the herd. This is quite the contrary.
    It is easier to think "buy low, sell high", rather buy high, sell higher or sell low, buy lower.
    - trend following needs discipline and patience.

    Read, reread Stan Weinstein : Secrets for profiting in bull and bear markets

    CM
     
    #12     Sep 22, 2017
    johnnyrock and Grantx like this.
  3. Newbie traders do this. Move stops to break even after a bit of profit to avoid a loss.
    Professionals have a tested strategy for moving up the stop loss to protect open profits which may have nothing to do with the entry price.
     
    #14     Sep 22, 2017
  4. 777

    777

    It has been my understanding that daytrading US stocks with random entries, after costs and slippage, would not be profitable.

    But I will look into this more.

    Thanks for the work you are putting into this thread.
     
    Last edited: Sep 22, 2017
    #15     Sep 22, 2017
  5. Individual stocks don't trend well (at least on an absolute basis). It's not that they are expensive, unless you trade them too quickly. A holding period of a few weeks or months is fine (assuming you're with a decent broker).

    GAT
     
    #16     Sep 22, 2017
  6. bbpp

    bbpp



    Your understanding for trend is zero.

    Your scenario could not happen to traders who know trend, because if they know trend, they will catch a trend, not fail every time.
    Your scenario could not happen to traders who do not know trend.Because if they do not know trend, they will also catch a trend by chance, not fail every time.
    Your scenario could not happen to traders who always go against trend, because those will not stop when market is against them.



    So your scenario could only happen to such a trader, who can find every trend( I don't believe there exists such a trader), and who lose his mind and decide not to follow every trend, but goes against it, and later he cut on his position at a loss.( I also don't believe there exists such a trader).


    x
     
    Last edited: Sep 22, 2017
    #17     Sep 22, 2017
  7. qxr1011

    qxr1011

    if by traders you mean people that trade for living, then that is not what they do
     
    #18     Sep 22, 2017
    BONECRUSHER, comagnum and Xela like this.
  8. Xela

    Xela


    You were right: I'd counted, just to check, before I read that sentence.

    And I bet I'm not the only aspie here who counts, almost obsessionally. [​IMG]
     
    #19     Sep 22, 2017
  9. 777

    777

    I see why it was looking like we had differing views and was puzzled.

    I was writing about daytrading US equities, except for my specific paragraph about longer.

    Nevertheless, I look forward to reading some of your work.
     
    Last edited: Sep 22, 2017
    #20     Sep 22, 2017