Best way to trade the Dow Jones?

[Andrewt84]

Hi Guys

I am a newbie please can you share with me your tips to trade the Dow Jones, I have been watching the share price movement off the stocks at Marketwatch.com is this the right thing to do? or do you just watch the % change ?

Kind regards
Andrew

 

[timsk]

Hi Guys

I am a newbie please can you share with me your tips to trade the Dow Jones, I have been watching the share price movement off the stocks at Marketwatch.com is this the right thing to do? or do you just watch the % change ?

Kind regards
Andrew

Hi Andrew,
Welcome to T2W.

Apologies in advance if this sounds harsh but, given your question, the best advice anyone can give you is not to trade anything, be it indices, stocks, forex or anything else. You need to learn about the topic first and then, when you think you have a basis of a trading plan, test your theories using paper money on a demo account. My personal view is that you'd be better off not trading a demo account until you have a basic foundation of knowledge. The reason being that the mechanics of opening and closing trades is very quick and easy to learn and, chances are, you'll enjoy beginners luck and think it's waaaaaay easier than it really is. Then you'll jump in with real money and get your ar$e handed to you on a plate. Learn first, test on a demo account second and then go live with a real money account third. If you want to know where to start learning, check out the first two links in my signature.

I realise none of the above answers your question. There are 1,001 ways to trade any market and the only tip you need to know at this stage is to learn all you can about the market(s) that interest you. The Dow is an equity index, therefore, besides the links already mentioned, check out these two stickies: Essentials Of Indices and Essentials Of Stocks
Enjoy!
Tim.

 

[realizniguhnit]

Hi Guys

I am a newbie please can you share with me your tips to trade the Dow Jones, I have been watching the share price movement off the stocks at Marketwatch.com is this the right thing to do? or do you just watch the % change ?

Kind regards
Andrew

Look into the E-mini DOW

 

[blanca]

I agree with Timsk, in fact he gave you the best advice ever, at this point you are just starting and trading is not an easy and fast activity you can learn quickly.

There are as many strategies as traders exist, demo trading is one choice and keep learning. Please do not think people do not want to help you, but the steps to follow are read books, learn, practice all by yourself, not even experienced traders can teach you how to trade their personal style, which might only suit for each individual, also personality and maturity plays a role in trading.

The reason why Timsk gave you this advice is because your question let us notice you are not ready for trading, at least not yet, but someday you will and we wish you luck

 

[vcir]

There's a very old thread here:
http://www.trade2win.com/boards/first-steps/5785-trading-dow-jones-strategy.html

Download the attachment on the first post and read the discussion... Great material

All the best

 

[Vicorka]

Hi Guys

I am a newbie please can you share with me your tips to trade the Dow Jones, I have been watching the share price movement off the stocks at Marketwatch.com is this the right thing to do? or do you just watch the % change ?

Kind regards
Andrew

Look not just into a change in price, look into a change in DJI volume and a change in DJI volatility. When you analyze only price change you see only a part of a picture. You need volume and volatility as well to understand why a particular price change took a place.

 

[laozi]

I'd get a demo account, keep trying, keep losing, keep blowing up, keep improving, never letting any one single loss exceed 1% of your total balance.

Once you consistently increase your balance, try for real. Demo doesn't really prepare you for real trades, being good in demo doesn't mean you will be good for real, however, being rubbish in demo definitely means you will be rubbish for real!

When ready to make the transition, do it really small. FinSpreads allow tiny trades, down to 6 pence per point for newbies.

 

[NVP]

stay demo till you make consistent morey....then start on small stakes as you will lose money again when you initially go live with real money

then after the knocks you shou;ld start to make money ........but the groundwork and foundation has to be laid first ..........no escaping it..........sorry

N

 

[Npard23]

Dow is only 30 stocks and price weighted. If you are trading based on macro fundamentals, the S&P 500 is a better instrument because its more comprehensive. For volatility and movement the Russell 2000 is the best index trade amongst US stocks.