FTSE 100 intraday trading - JUNE 2003

[kevin546]

Bonsai

As you have kindly explained I can understand the predicament that SB's face. I may try 2 x £25 (only when first has been confirmed)and see how I go on positional trades during the morning, at least I would not be placing many deals and hopefully this would not attract to much attention.

However I had intended that my 2 accounts would become equally matched in terms of size when I reach the appropriate limit, to off-set the tax with IB. But it is clear I will not be able to match the size of futures deals with SB. When I was trading above £30 a point I was getting re-quoted by 1 to 4 points on a round trip and this can add up after a while (value for money an all that, what).

Kevin

 

[bonsai]

tax ?

what's that ?


You realise that means you have a sleeping partner who takes 40% off the top !

Hmm, come to think of it, so do I.

but I get compensations.

 

[kevin546]

Bonsai

Had a good laugh at your last.

On a more serious note SB can attract tax as well if it is considered an income. I know SB is gambling and any tax from this is met by the SB companies. If you are trading through SB and you are trading to such an extent that it provides you with an income especially if it becomes your main source of income then you could easily get a nasty surprise from the tax man.

Should this take place then with SB already not having as good a spread on deals and there own prices doing there own thing sometimes, together with the restricted size dealing without avoiding re-quotes and the like; then in these circumstances SB becomes less attractive. If this is not your main income then you may be ok but there is still a chance even professional gamblers on the horses get the old tax bill because it is considered an income. I originally only went for SB because of the tax issue and now wish I had gone with Futures 2 years ago simply because they are easier IMHO. With the narrower spread I find that I can entertain more deals with futures than with SB the FTSE, it makes a nice change to be in profit after a point move. At least I can write losses off against tax and you are always going to get some however good you are at this game.

I did use to trade the FTSE from the 5 min D4F chart but now I would only trade it for a positional play currently using a 15 min chart for this purpose looking for 10 - 20 points per deal, today there were 4. I find this helps to deal with the wider spread and leaves me free to trade IB for the small pointers anything from 2 - 8 points at a time. There were 22 such deals today and most days there are over 10 so plenty of opportunities.

Kevin

 

[bonsai]

A few thoughts on where we may be, but only maybe.
E & OE including change of mind at any time !

 

[bonsai]

Kevin
you can be relaxed about sb's
they are not taxable - period-.

 

[Bigbusiness]

There are many views on spread bets and tax. This thread seems to cover most of them.

http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=5008

 

[bonsai]

Big Business

yes I know all about the chatter on that thread.

and that's just what it is, chatter

 

[bonsai]

morning all

still pushing up against the top of the channel !

I suspect it is just waiting , waiting for the right moment
and then a quick 50pts north ?

what do you think ?

 

[rglenn]

I think you are right there Bonsai

North is where it's going - but I wonder if its waiting for the Yanks! before the big move

 

[bonsai]

if you study these moves you will find that the ftse is a good
leading indicator for the dow.

but it can be subtle and crude.

the number of rallies over the years that have started at 4.10pm
are amazing.

when the market makers smell whats in the air, they are not stupid.
They make it expensive to join in and get as far away from safe stops as quickly as possible thus increasing our risk if its a false alarm.

 

[bonsai]

we are already 60 pts away from the stop !

 

[jonnyy40]

I've got Lord Jamla sitting in with me today.

 

[bonsai]

?

 

[jonnyy40]

Lord J says any answer I give will be beyond your comprehension.

 

[bonsai]

are you having a bad day jonnyy ?

 

[jonnyy40]

Maybe,I put an up bet,ftse june yesterday at 4105, logged on at 7.55 and it was at 4131 so took £260. should have left it alone.

 

[bonsai]

tough, but it may come back.

in fact I am almost counting on it.
I passed the opening move up as I thought it might get stuck
so I am waiting for an entry.

and there is that juicy gap opening this morning.

 

[bonsai]

its midday and unless you went with a bed and breakfast
its difficult to scrape a living out of this so far.

now looking around 130 for possible entry.
but I may have to wait and wait and wait.

 

[jonnyy40]

Everyones just sitting down to watch working lunch for some inspiration.

 

[jonnyy40]

very slow