Since this post has gotten a lot of attention over the years, I\'ve listed the top solutions per platform at the bottom of this post.
Original post
I use Supervisor for development. It just works. When ever you make changes to a .js file Supervisor automatically restarts your app with those changes loaded.
Here's a link to its Github page
Install :
sudo npm install supervisor -g
You can easily make it watch other extensions with -e. Another command I use often is -i to ignore certain folders.
You can use nohup and supervisor to make your node app run in the background even after you log out.
sudo nohup supervisor myapp.js &