after exit; position continues to go in the direction of signal, what do you do?

[PKPet]

When you are trading using BTD signal or any trading method and close the trade (without a change in the signal direction) but the position continues to go in the direction of signal, what do you do? Get back in or wait for a new signal? In this market I don"t like hold over the weekend. Thanks

 

[TRADERSAM]

Whenever I exit a trade I will not get back in. I trust my exit and leave it alone after exiting, especially if I made profit on that trade. No sense in giving it back by getting greedy. Even if the signal is still valid, I prefer to wait for a new setup rather than chase. That’s just my way of staying disciplined.

 

[BenTen]

Profit is profit, but you can also consider leaving some runners behind rather than closing your entire position if the trend is still intact.

 

[PKPet]

Whenever I exit a trade I will not get back in. I trust my exit and leave it alone after exiting, especially if I made profit on that trade. No sense in giving it back by getting greedy. Even if the signal is still valid, I prefer to wait for a new setup rather than chase. That’s just my way of staying disciplined.

The trade was profitable. I exited early because of the weekend. The EU trade deal will be an impetus for more upside. I agree with your logic.

 

[PKPet]

Profit is profit, but you can also consider leaving some runners behind rather than closing your entire position if the trend is still intact.

It was profitable. I am a swing trader and will stay usually until the signal changes. This year has been difficult because of changing weekend narratives.
I enjoy your teachings and trading setups. Thank you again

 

[TRADERSAM]

Profit is profit, but you can also consider leaving some runners behind rather than closing your entire position if the trend is still intact.

Totally, profit is profit. I’ve actually started doing that too sometimes — taking some off and letting a small piece ride. But if I close the whole thing, I just walk away. I know how I am with FOMO, so it’s better for me not to look back.

 

[PKPet]

In the same vein if the the trade goes against the signal that is generated how long do you stay in the trade before you exit? If you trade a limited group of stocks and ETFs such as only using SPY and QQQ the wrong trade will disappear showing the original trade. How long does it take to be wrong before the signal reverts? Do you use stops or wait til the signal changes? Thanks

 

[BenTen]

In the same vein if the the trade goes against the signal that is generated how long do you stay in the trade before you exit? If you trade a limited group of stocks and ETFs such as only using SPY and QQQ the wrong trade will disappear showing the original trade. How long does it take to be wrong before the signal reverts? Do you use stops or wait til the signal changes? Thanks

You should have a stoploss level figured out before you enter into a trade. It would certainly help with the decision-making process in the event that the trade doesn't go as expected.

 

[dart966]

 

[useThinkScript]

What you are asking, is a common plight for reversal daytraders. Many sell because they rode the initial retracement, hit their profit target, and exited.
Or simply because they do not hold overnight or over the weekend or during economic announcements, etc...
And thus they find themselves out while the instrument continues its upward trend.

Textbook daytrading:
Profitable daytraders love to start out with a reversal trade when available: the buy low -- sell high strategy

Here is an example using the VIP Buy The Dip:​

https://usethinkscript.com/threads/buy-the-dip-basic-chart-setup.14773/​

Buying dips can be highly profitable. The initial surge tends to be the biggest momentum (biggest candles), thus greatest profit in the shortest amount of time.​

At the end of the day, the daytrader exits and pockets his profit.​

After exit: The instrument is still trending.

The daytrader must pivot from a reversal strategy to a trend strategy.​

In Bull Markets, Strong High Growth Instruments do not dip often so trend strategies are more common than Buy The Dips but riskier. Your analysis must find clues that the trend will continue.​

Here Is The Difference​

Reversal Strategies:

Buying Dips of strong long-term uptrending stocks on bullish days is profitable because these trades want to retrace upward and have the liquidity and institutional investment to do so.​

Trend Strategies:

• Are more advanced.
• Require more analysis.
• And a strong understanding of support and resistance.

Improperly applied trend strategies (IE: entering on random buy signals) is why >80% of daytraders fail.​

1. daytrading trend strategies are predicated on riding the overall market trend:​

https://usethinkscript.com/threads/market-review-trend-is-your-friend.20968/​

2. and trading instruments likely to outperform that market trend:​

https://usethinkscript.com/threads/identify-the-big-movers.20100/​

3. and finding optimal entry zones:​

https://usethinkscript.com/threads/good-strategy-basics-in-thinkorswim.8058/​

​

@PKPet
As long as the requisite analysis supports it; yes, it is possible to re-enter the trade and ride the continued trend upwards.