Hi everyone, my first thread... What in your opinions are the bestmost realiable FTSe 100 indicators. The 5, 10, 20 and 50 day moving averages seem to be pretty good for prices over the week. However is there a particular techinque or indicator for scalpingthe FTSE, or would you say that Scalping is mianly luck?
rathcoole_exile
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mate, I'd suggest that you have a lot more reading to do before you can start asking those kind of questions.
For your own protection, otherwise you'll run off with the first answer someone credible gives you.
If you succeed in the short term, you won't understand why and you'll blow up sooner or later; if you don't succeed by accident, you'll blow up even sooner.
My advice would be to read the FAQs and First Steps, then move on to trader_dantes Making Money thread, then over to Jayjay's divergence thread and wherever else takes your fancy later, such as Jasont's log.
At the same time, read John Carter's Mastering the Trade and Mark Douglas' Trading in the Zone.
Scalping, by the way, is not about luck. It's probably one of the hardest ways to make money in the world. Bar none.
As someone once said, trading is simple, but it ain't easy ........
there are no short-cuts I'm afraid. just months if not years of pain, tears, frustration, ecstatic highs, paralysing lows.
And it's going to cost you. I don't mean training courses and seminars, forget all that old bollox. Everything you need is available here on T2W and in those books I mentioned (I'm sure others will suggest additional titles).
I mean it's going to cost you to learn how to trade - you have to make your contribution for your education, your contribution to the markets.
Welcome and best wishes for a happy and succesful trading career.
Garry
For your own protection, otherwise you'll run off with the first answer someone credible gives you.
If you succeed in the short term, you won't understand why and you'll blow up sooner or later; if you don't succeed by accident, you'll blow up even sooner.
My advice would be to read the FAQs and First Steps, then move on to trader_dantes Making Money thread, then over to Jayjay's divergence thread and wherever else takes your fancy later, such as Jasont's log.
At the same time, read John Carter's Mastering the Trade and Mark Douglas' Trading in the Zone.
Scalping, by the way, is not about luck. It's probably one of the hardest ways to make money in the world. Bar none.
As someone once said, trading is simple, but it ain't easy ........
there are no short-cuts I'm afraid. just months if not years of pain, tears, frustration, ecstatic highs, paralysing lows.
And it's going to cost you. I don't mean training courses and seminars, forget all that old bollox. Everything you need is available here on T2W and in those books I mentioned (I'm sure others will suggest additional titles).
I mean it's going to cost you to learn how to trade - you have to make your contribution for your education, your contribution to the markets.
Welcome and best wishes for a happy and succesful trading career.
Garry
chilltrader
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savioursofpop
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agreed - excellent post. no easy way to learn this trade - and ignore all who say there is. I would only add another couple of more practical notes I've learned the hard way.
1. always only risk 2% of your total capital in any one trade (i.e. my stop loss is set so 2% is the maximum I can loose).
2. when you loose - go for a run, get out the house - generally reset yourself - don't jump straight back in
3. give 20% of everything you win to charity - what we do is one of the dumbest, most useless, non value adding pass times ever invented - by donating to people who actually do something useful with their lives, you're restoring some sort of karmic balance!
I also found John Murry's "Technical Analysis of the financial markets" particularly useful.
1. always only risk 2% of your total capital in any one trade (i.e. my stop loss is set so 2% is the maximum I can loose).
2. when you loose - go for a run, get out the house - generally reset yourself - don't jump straight back in
3. give 20% of everything you win to charity - what we do is one of the dumbest, most useless, non value adding pass times ever invented - by donating to people who actually do something useful with their lives, you're restoring some sort of karmic balance!
I also found John Murry's "Technical Analysis of the financial markets" particularly useful.
I find a reliable FTSE100 indicator to be the S&P. We tend to follow the US market and this index is its' major element. Study of the FTSE in isolation will lead to much confusion because it is virtually a derivative of the US stock market: short-term moves in particular may appear to contradict orthodox TA without a picture of what the S&P did after the London close 5 hours earlier. Action short-term of the S&P itself is quite often 'suggested' by the Nasdaq but TA of the S&P is always rewarding.
savioursofpop
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thanks for that - very useful - from my own point of view I keep an eye on Wall Street but not to this extent - tomorton (isit tom?) - are you suggesting its actually easier to scalp the S&P rather than the FTSE?
Chorlton
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Hi Saviour,
Just wanted to add to one of your comments.
Even though I understand the undelying message of this comment, as it is exactly written I would disagree with it for the sake of newbies reading it.
Losing trades need to be easily accepted and brushed off. A lot of the time a successful strategy will consist of more losing trades than winning trades. The key is to accept this. If every time a losing trade happens, you do something different (ie. walk away, go for a run, etc) then it will make it difficult to mentally accept losing. Not overcoming this hurdle will impact on future performance.
All IMO & All the best,
Chorlton
Just wanted to add to one of your comments.
Even though I understand the undelying message of this comment, as it is exactly written I would disagree with it for the sake of newbies reading it.
Losing trades need to be easily accepted and brushed off. A lot of the time a successful strategy will consist of more losing trades than winning trades. The key is to accept this. If every time a losing trade happens, you do something different (ie. walk away, go for a run, etc) then it will make it difficult to mentally accept losing. Not overcoming this hurdle will impact on future performance.
All IMO & All the best,
Chorlton
No I'm not. It might be easier, but I don't know as I swing trade rather than scalp. In fact I have tried scalping and have found it just the hardest way to make money consistently and avoid a coronary. With regards the S&P, I basically pay attention only to price, that is, by way of high-low bars and candlesticks, though significant MAs like 50 and 200 often show likely S/R levels, and I do pay a little attention to volume, RSI and stochastics, but only for confirmation and likely turning points. When I enter a position, it is on price action alone. But I do find that if the S&P is making e.g. a clear reversal pattern out of a bull trend, the FTSE will mimic this, without perhaps ever developing a similar clear pattern.
