strategies for spreadbetting

[osho67]

This is my first post. I have made losses all the time in spreadbetting. This is not due to spreads or even bias. I just cant manage to pick the right direction. I trade dow -daily cash with finspreads.

I would like to explore what strategies other successful traders use. Please tell me where can I find more information. Thanks

 

[options]

Big picture. Look at 3mth/ 6 mth/ one year chart etc. Decide trend. Learn to trade in that direction. (Last bit is the hard bit.)

Stop using real money for a few weeks at least or you will have none left.

see how you do, then try for real using the smallest amount possible.

Don't change your mind at every hicup.

Study what you are doing. (Should only take about 3/5 years to get a good understanding of markets. Then another 3/5 to get the trading right.)

Lastly; Thank you for all your money.

Options.

 

[BeM]

It's up to the person, some people learn faster, some learn slower, but there are some rules that everyone must apply, especially the psychologic rules. I have been trading the S&P 500 with Finspreads for just about three weeks and of course I've got less than I had when I started but I remember that although the spread kills my profits but whenever I was in control and didn't let my emotions take over I was positive. I'm starting to catch up now and regain some of my losses but there are so many rules to apply and reading them doesn't do much good, feeling them is better but it's much better not to feel too violent hits, then your confidence and also pocket may suffer too much.

 

[BeM]

And... I believe if you can spread-bet successfully then you will do just great in the market, spreadbetting is very difficult, almost impossible if you are trying to catch the daily moves.

 

[shinobi]

Try trading the TradIndex virtual account for a while. Everything is the same as with real money but without the pain! You'll need to register but it is good practice ground.

Keep learning and don't give up.

 

[Skimbleshanks]

Osho67 - if you're willing, can you tell us a little more about the strategies you use? Things such as the charts you are using (1 min, 15 min or whatever), which indicators, your average length of hold, how you determine an entry, and the type of stop you're using, etc. Just so that we get a picture.

If we know that, then maybe a few peeps can suggest some small amendments based on their experience which might be beneficial for you.

 

[jamus]

Follow the Pied Piper!

BeM,
Spread betting can be difficult for the uninitiated but I would not say its impossible. I have developed some strategies and techniques which catch the trendy moves and I manage at least 20 points on a bad day trading the Daily Dow. I think the secret is to see the big picture and trade it. Most people make the mistake of being biased one way or the other, and willing the market to go where they want it to go. Let the market tell you where it is going and you just jump on the bandwagon. I think that is the easiest and most profitable strategy

 

[sifts2win]

I have spread bet the Dow for nearly a year and was actually up for most of it but suffered string of losses so have ceased for a while.

I found the only way was to trade reversals between 20 - 35 mins after the open, another reversal around 90 mins and close out all positions at 5.30 pm our time (their lunch). I use 13 period bollinger bands.

At 7.30pm our time, (lunch over) action usually kicks off again, (often more reversals).

It takes a strong nerve as the best prices come from countering the immediate trend which is anathema to everything you've learned. A CLOSE outside the band on a 15 min chart gives fairly consistent signals of imminent reversals around these times.

It has taken me years to discover this but again trading it is harder than it seems when you look back at the charts. The problem comes when the reversal doesn't happen. You lose your money FAST ! With FinS I immediately place a stop 35 points out max !

It could be improved I believe using better entry techniques to cut down false signals and in my experience you've got to take every trade as they come almost mechanically. I am selective and all the ones I leave would have been winners and lately all the ones I take have been losers. (Sound familiar ?)

Hope it gives food for thought.

 

[osho67]

I use quote.com for live chart. Mostly I use 5 min or 10 min chart . I also prepare manually p & f chart and enter a buy when I have two crosses (box size 10 points) . When 5 min chart reverses I close my position. I have broadband but apart from that I have no other tool.

 

[Skimbleshanks]

Ahhh, we're getting there - you're using point & figure to trade. There is someone called Weez who pops into the chatroom late US market hours who trades Dow using PnF.

I'm pretty sure she was using 10 point boxes and 5 box reversals. And then someone else called Bullet was using a two box break of trends.

Unfortunately I don't know too much about PnF. I've just bought the book Point & Figure Commodity and Stock Trading Techniques, but haven't got as far as reading beyond the first page (just lack of time).

Perhaps someone else here can give you some pointers.

 

[BeM]

I didn't say it's impossible like totally, I wouldn't do it then, it COULD be impossible for some strategies, for others it could be okay.

 

[ChartMan]

I have found that trading the 100MA on 1 min chart is a good starting point. Look back over the archives under " dow intraday". Trading in that direction can pay big rewards, it can also cause a few whipsaws. Basic rule is don't trade when the price is within +/- 20 of the 100MA on a 1 min chart.
That sounds simple, but it isnt, and care is still required.

 

[sifts2win]

Chartman,
"Don't trade +/- 20 of the 100 ma" ? Do u mean only enter a trade when above or below by more than that ?

 

[ChartMan]

yes- that will help prevent you entering a trade with a good likelyhood of being whipsawed out. Once dow is outside this " band" it tends to stay out. When it is inside, it tends to stay inside until such time as it decides to breakout, in EITHER direction......If you really want to play safe , use +/- 30

 

[sifts2win]

Thanks Chartman,

Using Futuresource Dec Dow yesterday I paper traded an easy 30 points profit, shorting from around 8910 to the close using your method plus Helens 'rules'.
With all the bells and whistles from Sierra and My track who knows ??
Thanks v. much for help and Helen for more websites and pointers etc.

A good w/e to all.

 

[osho67]

Dear Chartman
I cannot find "daily dow" mentioned by you anywhere. Please give some more directions as how to go there. Thanks.

 

[ChartMan]

Try searching for just dow or dow intraday....

 

[Splurge]

A good all round system which works very well for beginners. Use a 30 min candlestick chart using a 34ema. Enter the trade in the direction of the completion of the first full bar after it crosses the MA. Stop loss is usually pretty wide at about 5 points trailing, close the trade at approx 35 points. Usually most effective on the S&P. A lot of people use this system for trading eminis so you will need to convert the stops/exit points to suit the spread bet company you use.

 

[JonnyT]

This system has been doing the rounds of late.
I think it has some merit in catching the big trends.

Taking 35 points profit or reversing the trade on a completed candle has yielded around 59 S&p emini points since 20/12/02

JonnyT

 

[JonnyT]

PS currently long @858 at 13:30 US Time 18:30 UK

JonnyT