FTSE 100 intraday trading - JUNE 2003

[bonsai]

Somebody asked me a little while back about how many points
they should be 'targeting' in order to assess whether they were
trading well. Unfortunately I can't remember who it was but the
following thoughts may be helpful all round.
In my Day Chart , I have been trying to assess how many points
each day has yielded. I have done this with a very conservative
approach, using the concept of trading the swings. Definitely
not what an expert scalper might achieve.
So far, the figures look like this
JUNE
6 -30

9 -30
10-10
11-70
12-20
13-70

16-60
17-30
18-60
19-60
20-30

23-50
24-25
As you can see, considerable variation on a day to day basis.
On the smaller days, the trick is to avoid over trading and losing
money.On the larger days, you need to get in fairly early and
ride the moves.
I would suggest you keep track of how well you are doing relative
to these figures.

In summary, there were 200pts avialable in week 1 and 240 pts
available in week 2
If you caught half of those points you would have netted about 100pts
and 100pts at £10 a point for 50 weeks is £50,000 per year.
and if you spreadbet, there is no silent partner taking a 40% slice.

You dont have to take undue risks but you must be patient.
Ftse is a slow mover.

 

[boy]

dont you sleep bonsai?

 

[bonsai]

Up lad: when the journey's over
There'll be time enough for sleep
(Housman)

 

[boy]

nite nite kind sir.

 

[bonsai]

think we may be trying to reach for 4100 ?
internals look weak though.

 

[mully]

It appears not to be able to make up it mind, trading 15 points between 4075-4090 on Deal4Free for the last 150 minutes. Waiting for the break, but fully aware that the Fed announces at 19.15 to-night.

 

[ChowClown]

...went short at 74.

 

[ChowClown]

..hmm, could perhaps have stayed in longer but need to do something, so out for +14.

 

[bonsai]

v.g
did better than me, unfortunately
in late and out early for +8
sb's turn that quote on a sixpence.

 

[ChowClown]

..more luck than judgement, just realised there's support at 4060!

 

[bonsai]

as is often the case . when we have a down turn everybody gets bearish but
if we can make a higher low here, we may have started the next rally.
against a low of 53, we may have a low risk long trade very soon.

 

[mully]

Make or Break time

 

[ChowClown]

..long at 63.....oh dear...out for -13

 

[kevin546]

Hi Bonsai

Interesting post re available points against points actually achieved. I was rather surprised when I discovered that one group of FTSE floor trainee traders have a daily target of 10 points. This made me set myself much more realistic targets and except small gains rather than always looking for more. Better to always take something as a profit is not a profit until it is banked and after all any profit is a good profit. LOL I now look for 20 points from a morning session and 40 for a complete day but happy if I just come away with something. As can be seen 20 is very easy to get so if I get more then this is a bonus rather than a MUST at all cost approach. Mind you of late it has become much slower and maybe 10 points per morning session may become my new target. As always the object must be to keep repeating gains and thus produce a good profit continually overtime.

Kevin

 

[kevin546]

it's a downtrend so far today!

 

[bonsai]

kevin
interesting about trainees

its very easy to push too hard ? Ftse has only so many points to
yield and our trading systems will never catch them all.

there are problems though in thinking in target terms.
We could get a whole week of 20 pt days when its probably best
not to trade at all. That is where Elliott etc can provide clues by
setting out a road map.

not sure about it being a downtrend day. Has the makings of a bottom ?

 

[kevin546]

Re downtrend I was stating what it had been so far at that time as you will appreciate on an intraday basis it can easily change especially when the US is playing.

Kevin

 

[bonsai]

kevin : gotcha

nice bounce off the low this afternoon. At least as strong as the
earlier fall ?
and was back above the 50% fib before the auction.

now if Mr Greenspan says the right things, he may create a
following wind to break above the down trend line from 4200

 

[bonsai]

Looks like somebody is trying to put a bottom under
the recent fall or maybe it was just a day when they
stood aside and waited ?

 

[kevin546]

Bonsai,

2 nice trends today making it all worthwhile, remember I use those funny lines on my 2m chart LOL.

As for targets it is something I have at the back of my mind but each deal is dependent on certain criteria, I just have 20 points as a guide it helps me not to focus on much larger gains which was a failing of mine when I first started out. I now look for 5 points from 1 of my IB deals and on a good day there will be about 20 and usually over 10. This style allows for trading where you may not always be available to trade for long periods or at the best times of the day. Still working on my D4F trend approach and still get itchy fingers when I am +20 in a deal must try to just let the trendline do the work for me.LOL

Kevin