JITASH, re your post of 19-11-2003.
Your strategy on the Dow is sound. In the last couple of months, American traders seem compelled to respond to any positive economic news by piling into equities. The surge seems to happen most often in mid-afternoon - their time - and then falls back. There have been a lot of opportunities to make money using the strategy you describe. I hope, though, that you give consideration to selling when the low-range bet you bought has at least doubled in value, as the market falls back, and don't simply wait in the hope that it will reach your range before closing. As I see it, turning a profit consistently is more satisfying than 'winning' the bet.
Also, think about this strategy - when the DJ price has risen quickly to the 70/80 level you'll get a good price on the High Ranges for Wall St to finish up <100pts (or down) - and an even better price, of course, if the market has already risen above 100pts. If you're confident that the market will finish below100pts, then place a bet here. Over time, it will give you a better return than buying the 0-20 range and hoping that the market falls back far enough to give you a winning hit. This strategy, of course, works in the opposite direction, in a falling market.
Good luck
Your strategy on the Dow is sound. In the last couple of months, American traders seem compelled to respond to any positive economic news by piling into equities. The surge seems to happen most often in mid-afternoon - their time - and then falls back. There have been a lot of opportunities to make money using the strategy you describe. I hope, though, that you give consideration to selling when the low-range bet you bought has at least doubled in value, as the market falls back, and don't simply wait in the hope that it will reach your range before closing. As I see it, turning a profit consistently is more satisfying than 'winning' the bet.
Also, think about this strategy - when the DJ price has risen quickly to the 70/80 level you'll get a good price on the High Ranges for Wall St to finish up <100pts (or down) - and an even better price, of course, if the market has already risen above 100pts. If you're confident that the market will finish below100pts, then place a bet here. Over time, it will give you a better return than buying the 0-20 range and hoping that the market falls back far enough to give you a winning hit. This strategy, of course, works in the opposite direction, in a falling market.
Good luck
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