Make millions trading the financial markets

[combotrader]

Prop shops have a long tradition in German and Uk interest outrights and spreads. Shops like schneider mainly spread - whereas others like Marex and Futex do mostly directional (outright stuff).

As SL said - Bund is easier to trade than say most currencies. Part of this could be cos its a specific market with certain large speculators whereas everyone and their 2nd cousin is trading say cable and the euro.
If you draw some moving averages and use them on a 5min chart of Bund, also looking at the 15/30min chart you will see some great moves. But then Bund dies a painful death and trades in a very narrow range. These narrow ranges are great for scalping with small size. But the big money as always is in the big swing if you, like me, are an outright trader. And never ever for get the news - most scalper are on the news.....
CT

 

[Shakone]

Hi Skill, forgive me for my ignorance, but I just don't see why you would trade for a couple of ticks.

I'm sure people can make it work if they choose the timing correctly, but with spread costs, why would you do this? The risk reward is a nightmare, and the spread is killing a lot of your good judgement.

 

[crude_lover]

Hi Skill, forgive me for my ignorance, but I just don't see why you would trade for a couple of ticks.

I'm sure people can make it work if they choose the timing correctly, but with spread costs, why would you do this? The risk reward is a nightmare, and the spread is killing a lot of your good judgement.

its because they are encouraged to do so by the arcade as the more round turns they do the more the arcade makes off them, thats the plain and simple answer. they would rather have someone make £100 in 10 trades than £100 in 1 trade.

 

[Skill Leverage]

I don't scalp using the news, in fact I very rarely trade numbers.

crude_lover has given the usual but incorrect reason given for prop houses training you to scalp rather than position trade. If you were going to back someone to trade, and help them to build an account that they could support themselves from, would you want them to learn their craft using £500 stops or £10 stops?

Also, it's far, far easier to be consistent as a scalper than a position trader, as a function of basic probability. If you, as a trader, have a 65% success rate with your trades, if you only trade once a day you will have far more losing days than if you traded 200 times a day.

My bread and butter is scalping, but I've taken half a point out of the Bund on more than one occasion. At the end of the day, being a prop trader is all about acting in your best interests - I find it more comfortable to be constantly in and out, and it means I am not constantly suffering massive swings in my P&L. Yes, the firm and my clearers make a lot of money from my trades, but it's simply one of my business' overheads.

 

[Skill Leverage]

Skill Leverage,

I'm not a scalper, but I do trade Bunds in a small way (only spread betting though). Still trying to get a proper handle on what moves the damn things (I do have some ideas, but it still seems a bit of a black art). Yes, I can see that when Trichet speaks it's going to do something, but what moved it, for example on 1st Oct? Hell of a jump.

Also, any idea why the trend changed around 22nd-23rd September?
Edit: Looking again, this time at Daily chart, it was more like a breakout (1st Oct) of the range, to continue the longer term trend.

Thanks.

Hi mate,

I'm at home at the moment so can't see any charts etc. will take a look at the days you're mentioning tomorrow and let you know what I see. It's kind of hard to separate the days in my mind to be honest!

SL