Need some clarification about trade management

This is the first month where i am net profitable and i really like the journey of learning from mistakes. Please bear with my doubts about trade management for a while… :slight_smile:

I give my entry when the hourly momentum comes in line with that of daily with a pivot break in 15min chart. Using this, im getting proper entries and i can see some paper profits. But i really dont understand when i have to take profits (stop trailing). I exit the positions when the hourly momentum goes in the opposite direction of that of the daily.I ended up in taking so little from the trade and when i take the profits, market just rallies after my exit. :smiley:
Can someone help me with this? What i have to look for once the entry was given to trail the stop?

Nice to hear back from you Jagadeesh about the progress in trading.

I believe Momentum indicators are leading indicators, that means they have to be used as ‘Alert’. Then, confirmation has to be obtained from the Trend Indicators which can be used to ‘Confirm’ whether to take the trade or not.

Map your trades on the chart of the scrip and try to incorporate other indicators one by one in iterative and incremental manner.

You are mentioning that the market just rallies after you exit a trade. At that point of time, study which indicator was hinting the market rally.

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Thanks for that sdg. :slight_smile:
As i give my entry after the pivot break in the direction of the daily, do i really need a trend indicator as im purely following the price action?? If i need to, then what exactly are the trend indicators that i can study about and incorporate in my trade plan??

The decision to enter a trade is taken through direction of the daily chart and the decision to exit a trade is taken through the momentum indicator in hourly chart. In hourly chart, there will be more whipsaws. Try taking decision to exit through the momentum indicator in 2Hr chart.

yeah… i will try that from now… :slight_smile:

Also, alternatively u can try another thing. Retaining the hourly chart, try increasing the parameter values of the momentum indicator to higher values and through that take decision to exit.

So i think i got the point. Correct me if im wrong. Leading indicators like stochastics and all, keeps us alert. Take the entry signals from the lagging indicator as it confirms the alert. Am i following you?

yes. You are correct.