SP500 with the trend !?!?! etc

[Lombiz]

Hello,

I have read too much about what people think and how and what do do when trading. Problem obviously is that many people talk about swing/daytrading stocks without much leverage so I dont think same rules applies to highy leverade CFDs.
Ie if above SMA 200 only long vice versa.

I pretty much only trade SP500 CFD (with big leverage and sizeable positions)
On my screen I have EMA 9,20 SMA 50,200 MACD regular settings and Slow stochastic
Time periods 5m,15m,1h
There are a lot of knowledge here so I would highly appreciate some feedback.

Q1: Do you only enter trade with the bigger trend like 1d,4h etc?
I feel I miss so many trading opportunities so I dont follow that rule.
Even the 1h takes forever to turn so I often only look at max 15m. Bad idea?

Q2: Do you trade indexes when regular market is closed?

Q3: I often take positions based on stochastic crossover, MACD signal line crossover(in that order) even if EMA 9/20 hasnt crossed yet.
I find EMA 9/20 too slow for signals. Would you wait until all line up or disregard EMAs more than to see if prices has come too far from the averages?

Q4: Should you always let the market open for a while to see the "real" trend of the market. Is the futures market too thin to really show any really value? (except mimicing Europe etc)

My biggest problem is that I am a bit of tradoholic. Which is my biggest drawback.
I have a hard time being out of the market even if I should wait for perfect setups.

Any feedback would be great.

Thanks in advance.

/P

 

[malaguti]

We are probably all different, Lombiz so my two cents worth would go something like this..

I have read too much about what people think and how and what do do when trading

.
You can read and read and read, its what works for you that matters. some is good advice, others is useless advice. This might be perceived as useless if it doesn't fit in with your own style.

Problem obviously is that many people talk about swing/daytrading stocks without much leverage so I dont think same rules applies to highy leverade CFDs.
Ie if above SMA 200 only long vice versa.

The same rule applies mate. What is leverage, other than the ability to risk more? Your trading approach is still the same, just your risk changes.

I pretty much only trade SP500 CFD (with big leverage and sizeable positions)

given your experience level, this seems like a very bad idea

Q1: Do you only enter trade with the bigger trend like 1d,4h etc?

yes always

I feel I miss so many trading opportunities so I dont follow that rule.

Its not the quantity of trades you take but the quality

Even the 1h takes forever to turn so I often only look at max 15m. Bad idea?

If your trend definition is based on the hourly, then yes its a bad idea. you will have many opportunities to enter/re-enter. possibly your strategy is not giving you enough opportunities to re-enter a trend. Work on that in my opinion

Q2: Do you trade indexes when regular market is closed?

personally, never

Q3: I often take positions based on stochastic crossover, MACD signal line crossover(in that order) even if EMA 9/20 hasnt crossed yet.
I find EMA 9/20 too slow for signals. Would you wait until all line up or disregard EMAs more than to see if prices has come too far from the averages?

I don't use indicators, for the very reason you stated already, that it takes so long for the indicator to match. work on identifying price action within the trend, and an indicator can help, but should not necessarily be the basis of entry

Q4: Should you always let the market open for a while to see the "real" trend of the market. Is the futures market too thin to really show any really value? (except mimicing Europe etc)

Why dont you work on the statistics of your method..identify the portion of losing trades, and did those losing trades occur in the first 30 minutes for example. A trade journal will help here. keep a log of all trades you make

My biggest problem is that I am a bit of tradoholic. Which is my biggest drawback.
I have a hard time being out of the market even if I should wait for perfect setups.

I've said it already, quality over quantity. if you feel the need is greater to enter a trade, than the reasoning behind it, you will fail in the long term as this is nothing more than gambling

 

[Lombiz]

Actually I have been trading for several years but trying to finetune my approach.

My question about the trend was that the big trend has been up for many month so I should never go short then!? I guess I got your answer that I can base my trend on any timeframe I prefer.

Thanks for your answers..

 

[malaguti]

Actually I have been trading for several years but trying to finetune my approach.

My question about the trend was that the big trend has been up for many month so I should never go short then!? I guess I got your answer that I can base my trend on any timeframe I prefer.

Thanks for your answers..

my apologies then Lombiz for my remark about experience. And yes, if your trend is based on hourly, etc then I would never go against that. I will always still look at daily and weekly however. Never forget those. You should already have an idea then as to where all your trends are on each timeframe, and where support is likely to come in.