What to trade?

Last one I promise...

Curiousity still getting the better of me...

If you could add a reason why on it aswell, it would be appreciated!

expecting the DOW or US stocks to lead but looks like currencies at the moment, early days mind...

Could one of the mods add another option for 'other - oil to orange juice' on the end?

You've come all this way and read the posts so theres no point leaving without clicking on an option!

(I feel like one of those evil people on a street corner with a clip board!)

chrisw

added as requested - let's hope it gets a few votes.

jon

Why is it necessary to make a choice? I'm interested in stocks at major turning points, such as March/April two years ago. Otherwise, they're not worth it to me. I trade the indices on the intermediate-term and daytrade eminis because of the predictability.

A time for each in its own turn . . .

dbphoenix said:

Why is it necessary to make a choice? I'm interested in stocks at major turning points, such as March/April two years ago. Otherwise, they're not worth it to me. I trade the indices on the intermediate-term and daytrade eminis because of the predictability.

A time for each in its own turn . . .

Click to expand...

Not saying a choice has to be made and the options are open to select more than one. I was merely interested and curous to how popular different markets are, and which attracts the most attention. There are many who start out and trade Indicies as they are so well known but the options are so varied, how and why does one end up trading the market of choice or, like you say, do many chop and change as opportunities arise.

chrisw said:

the options are so varied, how and why does one end up trading the market of choice

Click to expand...

For many, it's trial and error, as with a job or career or car or spouse. For others, it's the result of deliberate consideration and effort. If one doesn't know what he wants, the difficulties begin almost immediately. I rarely encounter beginning traders who have any idea what they want, other than to "make money". Clearly this is not in fact what they want.

dbphoenix said:

I rarely encounter beginning traders who have any idea what they want, other than to "make money". Clearly this is not in fact what they want.

Click to expand...

It certainly is what I wanted, and why I started, and why I still trade.

245 views and only 20 votes!

Currencies have the edge

The Leverage and Liquidity offered in the currency market is unrivalled.

Case in point:

Hottest stock over the past year has been Google (GOOG) - w/o question. Investment doubled in the first month and now stands at 150% above the starting price. This is a spectacular performance by any "normal" measure..

In the currency market "doubles" are a daily occurrence thanks to the leverage and liquidity mentioned above. An astute currency trader would have taken the same investment and grown it many times beyond what GOOG has returned.

Uk stocks are the ones I trade the most (75% of trades), a few US stocks (no NASDAQ as they are too volatile) and the FTSE and DOW indices. Being that my trades are based on fundamentals it is much easier to achieve a very high strike rate on UK shares than would be possible in highly volatile instruments like commodities and currencies. Besides, there are far too many variables that move currencies on a daily basis and I do not possess the ability to master such markets. Shares in a particular company can only stay out of line with the underlying fundamentals for so long.

Part of the reason I stopped trading the FTSE and DOW was the factor of too many variables that could move them and find currencies much easier. I use TA rather than fundamental analysis but naturally pay attention to fundamental factors that will make a difference, and find them much easier to keep tabs on.

I occasionally trade UK shares as well using both methods, swing rather than day, but I'd miss currencies too much and would miss the volitility too much.

So where are all the wisdom filled constant posters votes...............

Currencies are the winners!

Cheers to those who participated

Or maybe not?

chrisw

I am going to discuss trading strategies in the Index Futures.I feel are much better to trade than currencies. These strategies can be used for YM S&P NAS markets and most trading styles. These are a few thoughts that you might explore if you haven’t already. . I feel that the Mini-Dow offers the maximum amount of opportunities and is a very user-friendly market What exactly makes the Mini-Dow move? Some might say the Mini Nasdaq or Mini S&P's. But what makes them move? Cash markets Stocks.bonds,

Start to watch the stocks and sectors that move these markets. For instance, when Microsoft and Intel are making a move, the NDQ is going to be affected. I find that I am able to pick and choose better entries and exits using this method. The larger market moves are more obvious when watching the stocks that comprise them. also take a look and the bonds and see what they are up to,

Because the Mini Dow isn’t a lead market, you have the luxury to sit back, be patient and get in at the right time for the right reasons. I might accumulate a short position while watching IBM, and GE and some of the oil stocks sell off, and make a profit in the YM because I saw this move coming.

Another strategy would be to know the players in your market and familiarize yourself with how they trade. . Whenever I change markets I take a few days and watch who is in there, what they are doing and why. Who is trading a 100, 50 or 1 lot? I try and to notice patterns or traps. For instance, does the 500 lot bid always disappear after a few of the offers are lifted? Or what orders cancel after an up-tick or down-tick of prices.

trading doesn't have to be stressful, so I sit and wait. i am not always right, but I wait unitl it is the right time to get in - . My stats don't really indicate that I over trade I think instinct and intuition is very important. But I can't speak for every trader or TELL you what is the right way of trading and what isnt. I can only comment on what has worked for me. I trust my "Feeling's"

But I know for sure the currency market don't offer you (early signs) of early moves intarday like the indices.

CJ

I appreciate you sharing your thoughts and they have offered an insight into markets I don't know that much about.

The purpose of this thread was more for my curiousity, benefit of newbies and the unsure and to get a general picture of the members of this board and the overall tendencies.

I actually trade currencies and I'm completely happy and at ease with the opportunities, not to say the indicies aren't as good, its just I have never had much luck on them, much more with currencies.

That said, I am thankful for your post as I have learnt something and hope others who reasd this thread will also be educated.

Cheers,
Chris