Making Money On The Trends with Better Trades

 


Making Money on the Trends with Better Trades

A CEO-Level Framework for Sustainable Trading Performance

Introduction: Why Trends Matter in Professional Trading

In both business and financial markets, trends define direction. CEOs do not build companies by reacting randomly to short-term noise; they align strategy with long-term trends. The same principle applies to trading. Making money consistently in the markets is not about predicting every move—it is about aligning capital with dominant trends and executing better trades within them.

Trend-based trading is one of the most robust and time-tested approaches in financial markets. It allows traders to benefit from momentum, reduces emotional decision-making, and supports scalability. For executives and professional investors, trend trading is not a tactic—it is a framework.

This article explores how to make money on trends by improving trade quality, decision structure, and execution discipline from a CEO-level perspective.


Understanding Trends: The Market’s Strategic Direction

What Is a Trend?

A trend is the general direction in which a market moves over time. In trading, trends are typically classified into three categories:

  • Uptrend: Higher highs and higher lows

  • Downtrend: Lower highs and lower lows

  • Sideways (Range): No clear directional bias

For professional traders, trends represent market consensus. Fighting a trend is equivalent to running a business against macroeconomic reality—possible in rare cases, but usually costly.

Trends Reflect Collective Behavior

Market trends are not random. They are driven by:

  • Institutional capital flows

  • Monetary policy

  • Economic cycles

  • Investor sentiment

Understanding trends means understanding how large players allocate capital. CEOs who grasp capital allocation naturally adapt well to trend-based trading.


Why Trend Trading Works Over the Long Term

Asymmetry and Momentum

Trend trading benefits from asymmetric returns. Losses are controlled and limited, while profits can grow significantly as trends extend.

This mirrors business strategy:

  • Limit downside risk

  • Allow upside to compound

Reduced Decision Complexity

Instead of constantly predicting tops and bottoms, trend traders ask a simpler question:

“Is the market trending, and am I aligned with it?”

This reduces cognitive overload and emotional interference.


Better Trades Begin with Better Market Selection

Not All Markets Trend Equally

Professional traders do not trade everything. They select markets that show:

  • Clear structure

  • Strong momentum

  • Sufficient liquidity

Examples include:

  • Major Forex pairs

  • Index futures

  • Liquid commodities

From a CEO mindset, this is resource allocation—capital is deployed only where probability and efficiency are highest.

Timeframe Alignment

Better trades occur when multiple timeframes align:

  • Long-term trend (strategic direction)

  • Medium-term trend (tactical execution)

  • Short-term structure (entry precision)

This top-down approach mirrors corporate strategy cascading from vision to execution.


Defining “Better Trades” at an Executive Level

Quality Over Quantity

Better trades are not more trades. They are:

  • Well-defined

  • High-probability

  • Aligned with trend direction

  • Executed with clear risk parameters

Executives understand that overactivity often reduces performance. The same applies to trading.

Characteristics of a Better Trade

A high-quality trend trade typically includes:

  • Clear trend identification

  • Entry on pullback or breakout

  • Logical stop-loss placement

  • Favorable risk-to-reward ratio

  • Minimal emotional interference


Entry Strategies Within Trends

Buying Strength, Not Weakness

One of the most common mistakes is trying to “buy cheap” in a downtrend or “sell expensive” in an uptrend. Better trades involve buying strength in uptrends and selling weakness in downtrends.

This aligns with a core CEO principle:

Invest in what is already working.

Common Trend Entry Models

  1. Pullback Entries
    Entering after a temporary retracement within a trend.

  2. Breakout Entries
    Entering when price breaks above or below a key level in the direction of the trend.

  3. Continuation Patterns
    Flags, channels, and consolidations that signal trend continuation.

Each method prioritizes alignment over prediction.


Risk Management: The Foundation of Better Trades

Risk Is a Business Variable

In executive leadership, risk is quantified, managed, and accepted—not ignored. In trend trading, risk management defines survival.

Key principles:

  • Risk a fixed percentage per trade

  • Never risk capital you cannot afford to lose

  • Accept losses as operational expenses

Letting Profits Run, Cutting Losses Fast

Trend trading reverses the behavior of amateurs:

  • Small, controlled losses

  • Fewer but larger wins

This is how long-term profitability is built.


Position Sizing: Scaling with Intelligence

Size Follows Conviction, Not Emotion

Better trades use position sizing based on:

  • Account equity

  • Stop-loss distance

  • Volatility

Executives recognize that scaling prematurely increases systemic risk. Sustainable growth requires measured expansion.

Compounding Through Consistency

Trend trading allows capital to compound naturally over time, much like reinvesting profits in a growing business.


Trading Psychology: Executive-Level Emotional Control

Detachment from Individual Outcomes

CEOs do not judge strategy based on one quarter alone. Trend traders do not judge performance based on one trade.

The focus is on:

  • Process

  • Consistency

  • Long-term expectancy

Avoiding the Need to Be Right

Trend traders prioritize being profitable, not correct. This mindset shift is critical for making better trades.


Performance Review: Treating Trading Like a Board Meeting

Trade Journaling and Metrics

Professional traders track:

  • Win rate

  • Average win vs loss

  • Drawdowns

  • Adherence to strategy

This mirrors KPI reviews in business leadership.

Continuous Improvement

Better trades come from:

  • Reviewing mistakes

  • Refining entries

  • Improving discipline

  • Eliminating low-quality setups


Technology and Systems in Trend Trading

Tools That Support Better Decisions

Trend traders use technology to:

  • Identify trends objectively

  • Automate alerts

  • Reduce execution errors

However, tools support strategy—they do not replace judgment.

Automation with Oversight

Just as CEOs delegate but maintain oversight, traders may automate execution while retaining strategic control.


Common Mistakes That Destroy Trend Traders

  1. Trading against the trend

  2. Taking profits too early

  3. Moving stop-losses emotionally

  4. Overtrading during consolidations

  5. Ignoring higher timeframes

Avoiding these mistakes alone significantly improves performance.


Trend Trading as a Scalable Skill

Trend trading scales well because:

  • It is rules-based

  • It reduces emotional decision-making

  • It adapts across markets and timeframes

For executives, this makes trend trading an attractive long-term skill rather than a speculative hobby.


Conclusion: Better Trades Come from Better Alignment

Making money on trends is not about catching every move. It is about aligning with market direction, executing fewer but higher-quality trades, and managing risk with discipline.

From a CEO-level perspective, better trades are the result of:

  • Strategic alignment

  • Structured decision-making

  • Risk-first thinking

  • Long-term vision

When trading is treated like a business—governed by systems, metrics, and discipline—trend trading becomes one of the most powerful methods for sustainable profitability.

In the end, the market rewards those who follow trends with patience, clarity, and leadership—not those who fight them.

Summary:

One thing I learned, when I decided to trade in the stock market, is how important it is to learn from someone that is actually walking the walk and trading. Let me clarify that even more, making money in the market!



Keywords:

better trades, bettertrades, investing, investments, finance



Article Body:

Dear Traders and Friends:


I have been having a blast trading this last week. I made $7,300 on KKD, $1,700 on FRX, $2,000 on QQQQ and am doing well in my open trade entering FRX to the downside.


I am putting a day of my commentary here for you to see the value of using THE DEDICATED TRADER website as a trading tool.


One thing I learned, when I decided to trade in the stock market, is how important it is to learn from someone that is actually walking the walk and trading. Let me clarify that even more, making money in the market!


I have been shocked to find out how many people out there that are big name authors in the stock market that do not trade or have a negative trading record. What I mean is the rumor is they are no good at trading!


I do what I teach! I am one of very few stock market authors who not only talks the talk, but I walk the walk. I place my trades on my daily commentary for you to learn from. And this has been very valuable for my readers.


In addition to my commentary, I have a mentorship program called TRADERS TALK, where you can pay to spend four hours a week in a private Webshop with me. We go over any trades or whatever you want to learn, including my trades. It is very powerful, and I have been able to watch people go from a beginner level to about three years experience in just a few sessions.


Here is my commentary for Friday, June 6th:


Market Notes - Friday, June 06, 2003:


COMPLETION OF QQQQ TRADE: 3PM EST


I closed my QQQQ trade from a few hours ago using a GTC I set about 1/2 hour ago to just take 50 cents. I was filled for $2.95 on my 40 contracts listed below for a profit of $2,000 before commissions. Not bad for a Friday.


My other trades are going well - RED, RED, RED...I love the downside.


TRADES: 12:00 EST


1. I purchased 15 contracts of FRX puts. August $60 puts $5.90 FHATL. I will stop out if it breaks the high of today at $55.90 if it does not head back down right away. I will then trail it down to around $52 to profit.


2. I just purchased 40 contracts of the July $33 QQQQ puts for $2.45 QAVSG. I will stop out with an alarm if it breaks the high of today at $31.47 and does not turn back down right away. It gapped up today on Intel's good earnings report but is getting weak as I type. I usually do front or next month out on the QQQQ. I will trail it down for profits.


Good MORNING & Happy FRIDAY!


The markets are looking very green at the market open, and my trades for today are all down ones (that is if the markets were down). Perhaps in a few minutes we will get a reversal????? I doubt it!


Anyway here were my candidates if the market was down:


DOW: AA AXP DD XOM


NASDAQ: CMVT INTU JNPR MOLX NXTL SANM SPOT


I had no up trades. We seem to be in the middle of a trend for most stocks, and we are in a very sweet uptrend.


That is about all for today. If I do place a trade I will put the comments above this section later today.



So even though this message is short, it is a powerful one...BE CAREFUL WHO YOU LISTEN AND LEARN FROM!


The stock market is very powerful. If you learn how to trade, and do not short change yourself by trying to trade without necessary tools, you can have TIME & MONEY FREEDOM beyond your wildest dreams. I would love to help you!


Last, I just want to mention my trade on the QQQQ�s. It is one of my favorite things to trade. It is an EXCHANGE TRADED FUND that actually owns all of the NASDAQ 100 stocks in it. MSFT is the heaviest weight so I do watch what MSFT is doing for a direction. It obviously follows the NASDAQ market.


But as you can see by my trade listed above, I was able to buy 40 contracts at $2.45 a share for a cost of $9,800 and my delta was .71. The stock only moved about 77 cents to take a profit of 50 cents � making me $2,000 in about two hours. SWEET!


What I love about the QQQQ�s is that they have strike prices every one dollar! That means the July 33 calls I got when the stock was at $31.30 were only $2.45 with a delta of .71. That is incredible. You see, I could spend $5 - $8 per share on regular stocks to try and get that high of a delta, but it is so cheap on the QQQQ!


A lot of people miss the boat, thinking the QQQQ does not move enough to make it worth trading! What a mistake! I love trading this, and it only needs small moves to profit � but your investment is so small compared to trading stocks.


If you had only done 10 contracts that would have been a $500 gain from $2,450 before commission which is 20%! In a few hours 20% is phenomenal!!


All you need to do is pretend the QQQQ are a stock. Look at support and resistance the same way you do already, and choose a strike price with a delta of .70 or higher for a short term trade and trade it up on support and down on resistance.


I will be doing a course on this soon. I will probably offer a free one hour class on my site to introduce you to it. I think you can see why I am so excited about it, and I hope you might catch the fever.


I teach a two day class twice a month, check it out on my site! I will be in Atlanta on June 19 -20th�come see why students say I was their miracle they needed to become a better trader!


Happy Trading!


Darlene Nelson with Better Trades