Entertainment at 25 Euros a pip - are you mad!!! lol I've been SB'ting FTSE and Dow (max fiver a throw) on 2, 3 and 5mins charts - that's nervracking and fun at the same time. I don't have the courage to go any higher than £5/ pip. Do you a use a triple or dual MA or some other indicator for trading this?
I drink a lot of coffee, Bahman! Seriously, I don't skip but I watch this index like little girls might watch a rope go round. I don't wait for either extreme of the swing because I want to get into the game, of course I also want to get out again without grazing my knee. If you have a decent wedge to tide you over a mishap, you needn't lose. I know that many here say you must set and take a loss but that's not usually what I do. I recognise an unambitous range and trade that. If it goes against me, I am confident that it will come back and I have enough margin with the broker for a bad (or even worst) set of circumstances. For example, I am about 55% sure that the DAX won't go below 4400 today. I am 85% sure that it won't go below 4000 this week and I am 99% sure that it won't go below 3500 this month. These are my 'moving averages', if you like. I am going long because there is better potential, IMO for upside. I set an entry point which is pretty low but not the lowest that I expect for the day because I want to play. I set a sell limit at least 40 points up from entry but may make that level the stop if I'm watching when it triggers and the DAX looks like overshooting. Midterm, I think that 4850 is very achievable. If one is patient, that is €8750. Who's with me?!
It's been suggested by some that the DAX is a lot easier to trade, less volatile than the US/UK and is more agreeable with charting. May get back into the indices here after the rollercoaster that is known as the US markets!
I traded the DAX a little bit this evening, only $2 a tick though.
Its range is better than the FTSE, eg tonight it was +110 while the FTSE100 was only +60. As Monaco says, the range is your friend. I'm pretty new to spread betting but play on inordinate movements. If the DAX or FTSE are up/down by more than 3% then I'm pretty sure there'll be a correction. With a generous buffer (as much as my account allows, perhaps 400 points) I'm sure that I can make a gain of 20-30 points, if not immediately within a couple of days. If the index falls further in the wrong direction I forget about the first trade and work the new ranges.
From what I've seen the FTSE is safe(ish) within 3850-4050. If it strays to within 40 points of each extreme I take the opposite. The highs have been tested, but the lows could be tested next, hence staying well within the limits and taking small quick profits of 20-30 points. Tonight I was successful 5 times out of 5 and made $16 average each trade. Small fry but I'm still only learning. If I did it all day I could make $400 a day, which is a decent income, just need to hone the skill.
Currently $48 down on a $2 per point long on the DOW. It fell 110 points today, overcooked in my opinion. My buffer allows it to fall to 7497, which I hope it wont, I've set my limit to take profit at 7944.
As for the DAX, what's your opinions of a safe range at the moment? Sell at 4590, buy at 4420?
Should've made myself clearer above. What I mean is that if I open a spread and it falls further then I forget about it and open another. I leave the first one open until it recovers, and trade on the new ranges with the old one in the background, if that makes any sense!
Norbert - I've only traded DAX a few times (i'm overdosing on FTSE mostly). Totallu with you on the methodology. You are working in good ranges and small £/tick is (I think) right way to start, this way you don't lose any money (generally) and open other positions as you get the hang of it. Pretty soon you'll see patterns emerging: swing points, resistences and supports. You can then open positions with a (higher dgree) of confidence. But beware the will be days when the indices will spike very quickly and sharply. Good luck
another good day on the ftse (dabbled dax). Norbert - if you get the FTSE chart for day, using 15/50/ and 200 MA and look at from 8am to 2pm, you will see what I mean by the comments in last post. Good luck
Dax - good uptrend. Hourly chart, trend/sppt line on 1/4/09, 21/4/09, 28/4. MA's also showing strong uptrend. Yesterday would have been good entry on pullback to sppt line. That has given over 50 pips sinc yesterday - not bad.
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