Trading the trend

[DanPickUp]

Yes, very true...we as traders should be trend followers....and not trend starters. So if the trend is down, we should train our mind not to entertain thoughts of being brave and do bottomfishing.

But people are never happy trading the current trend...when the trend is down, they try to buy and try to catch the bottom and when the trend is up, they try to sell every rally trying to catch the top.Why do they do so ? because they find excitement in going against the trend but that gives them large losses and then they get into hope mode that the prices will come back to their levels which never happens....then the losses finally become unbearable and then they book losses and the market reverses....and this continues ....

Smart_trade

Dear ST

Are you sure they find excitement in going against the trend or are they may manipulated from the big boys, which control the look of the chart and so have the control of the market, to do so.

DanPickUp

 

[Smart_trade]

Dear ST

Are you sure they find excitement in going against the trend or are they may manipulated from the big boys, which control the look of the chart and so have the control of the market, to do so.

DanPickUp

No Dan, I have never believed the big boys manipulation ....it is our own faults that we get into troubles. Big boys are ruthless operators and they show no mercy in punishing us when we make wrong trading decisions...and we are in a competitive business...so we better be ahead of the big boys. We have tremendous edge or advantage that we can turn very quickly. And big boys cannot hide their actions for long....it becomes clearly evident on the charts.

Look at the NF chart of yesterday afternoon.....there is NO indication of any buying ....but still people bought at every dip ( even though the trend was clearly down ).Why did they buy ? they thought that the market will turn form there and they will get the excitement of catching the reversal at the exact bottom.....and they lost money in the end as markets kept going lower....

ST

 

[DanPickUp]

No Dan, I have never believed the big boys manipulation ....it is our own faults that we get into troubles. Big boys are ruthless operators and they show no mercy in punishing us when we make wrong trading decisions...and we are in a competitive business...so we better be ahead of the big boys. We have tremendous edge or advantage that we can turn very quickly. And big boys cannot hide their actions for long....it becomes clearly evident on the charts.

Look at the NF chart of yesterday afternoon.....there is NO indication of any buying ....but still people bought at every dip ( even though the trend was clearly down ).Why did they buy ? they thought that the market will turn form there and they will get the excitement of catching the reversal at the exact bottom.....and they lost money in the end as markets kept going lower....

ST

Maybe they tried to play a double bottom on the daily chart?

 

[Smart_trade]

Maybe they tried to play a double bottom on the daily chart?

Possible...but double bottom to be bought when the market is showing that it is holding the bottom.

I know people who are holding loosing positions from last many days and hoping that the market will come up...it might come up but they lost the opportunity of making money in the downturn.....they are holding loosing positions and adding to it and it affects the psychology so much that I am sure if at all market comes up, they will try to get out at minimum loss...but they could buy when the uptrend starts....why buy in the downtrend ? And if the market cracks further they will be miserable...so in the downtrend and then the uptrend ( which may or may not come soon ) what maximum they could achieve is breaking even if they are lucky and brave whereas the trend trader will make money in downtrend and the uptrend both....and will always be with the trend....

ST

 

[lokanathpai]

Good going!!

Have a look at his..
http://www.traderji.com/derivatives/66114-trend-following-trading-system.html

 

[lokanathpai]

This is one more good thread by Uttam Kamalesh about Trend Trading:

http://www.traderji.com/commodities...dities-gold-silver-crude-oil-natural-gas.html

Don't think that this is about commodities.. understand the concept... can be applied in any market...

 

[lokanathpai]

Just read this post / Story.. it is a good read...

http://www.traderji.com/commodities...ilver-crude-oil-natural-gas-5.html#post576631

 

[DanPickUp]

Possible...but double bottom to be bought when the market is showing that it is holding the bottom.

I know people who are holding loosing positions from last many days and hoping that the market will come up...it might come up but they lost the opportunity of making money in the downturn.....they are holding loosing positions and adding to it and it affects the psychology so much that I am sure if at all market comes up, they will try to get out at minimum loss...but they could buy when the uptrend starts....why buy in the downtrend ? And if the market cracks further they will be miserable...so in the downtrend and then the uptrend ( which may or may not come soon ) what maximum they could achieve is breaking even if they are lucky and brave whereas the trend trader will make money in downtrend and the uptrend both....and will always be with the trend....

ST

Dear ST

I think we could go on here like a ping pong game, as I could come up with the question: Who made the chart looking like it did in the daily chart?

Trading also has to do a lot with believes and there is enough space in the market to destroy or support every body's beliefs and ideas.

Thanks for the chat on such a good level and from my side thanks to thread owner to have the patient to let us chat a bit in his thread about:

Trading the trend and nothing else.

No need to point to other threads.

Good trading / DanPickUp

 

[Smart_trade]

Dear ST

I think we could go on here like a ping pong game, as I could come up with the question: Who made the chart looking like it did in the daily chart?

Trading also has to do a lot with believes and there is enough space in the market to destroy or support every body's beliefs and ideas.

Thanks for the chat on such a good level and from my side thanks to thread owner to have the patient to let us chat a bit in his thread about:

Trading the trend and nothing else.

No need to point to other threads.

Good trading / DanPickUp

Ok...point taken Dan.....we agree to disagree.

Enjoy the weekend...

ST

 

[DanPickUp]

Dear VIKAS

By the way: Any post on trend channels?