Day trading is definitely more profitable and safer than Swing / Position trading

This is a discussion on Day trading is definitely more profitable and safer than Swing / Position trading within the Swing & Position Trading forums, part of the Methods category; Hahaha..hi ya splitlink, I take it you use finspreads judging by your graph provider, what are these spikes that people ...

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Old Feb 23, 2008, 9:08am   #33
 
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Hahaha..hi ya splitlink, I take it you use finspreads judging by your graph provider, what are these spikes that people keep going on about...It's becoming a joke...its the same thing all the time and has been for years...oh..the market just spiked but only on my platform...could you find the time to post just one example on graph of a spike that so often occurs so I and others could look.

Thanks.

On the footsie it wouldn't have been a nasty surprise if you were long....




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Originally Posted by Splitlink View Post
Last night gave an example as to what can happen in overnight trading. As long as you are prepared for these sort of things--- OK! But a nasty surprise for a lot of short traders on Footsie and one of the reasons that I prefer day trading.

I have not checked as to why that happened, but it did. Curiously, it was not a flash spike as they, often, are but took an hour to develope.

Split
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Old Feb 23, 2008, 9:30am   #34
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Originally Posted by Lee Shepherd View Post
Hahaha..hi ya splitlink, I take it you use finspreads judging by your graph provider, what are these spikes that people keep going on about...It's becoming a joke...its the same thing all the time and has been for years...oh..the market just spiked but only on my platform...could you find the time to post just one example on graph of a spike that so often occurs so I and others could look.

Thanks.

On the footsie it wouldn't have been a nasty surprise if you were long....
No, I don't go looking for spikes to prove my point which is, it doesn't matter what it is, or what caused it. It happened. I have traded overnight and follow Barjon's Swing Trading thread but have come to the opinion that I prefer to be out of the market before the close unless I,already, have made a good profit on my day trade and am willing to take a chance.

But chance, it is, IMO.

Looking at that chart. It isn't finished yet, it's only Saturday morning!

Who's going to forecast how that will open on Monday? How is he going to arrive at his conclusion, by calculated TA analysis or pure guesswork? How is the happy long trader going to feel if it goes the other way before he can get out?

Split
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Old Feb 23, 2008, 9:41am   #35
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I think it may have been caused by news in the US and all SB companies give a quote for FTSE out of hours based on what other indices are doing.


Paul
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Old Feb 23, 2008, 9:59am   #36
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I think it may have been caused by news in the US and all SB companies give a quote for FTSE out of hours based on what other indices are doing.


Paul
News does terrible things to overnight traders, Paul!

Some time ago, I had an overnight trade on the Daily Mail Trust---DMGT. It was decided overnight that the company was not going to sell its free press arm. The shares opened with a crash the next morning!

I would not be surprised to see Footsie open with a stop seeking crash on Monday, only to pop back up again within a short space of time. Neither would I be surprised to see it not happen.

I prefer to be watching, then, rather than sweating through my Sunday church sermon.

I have come to the conclusion that God is not a capitalist, as so many Americans believe.

Split
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Old Feb 23, 2008, 10:10am   #37
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Split,

What time period is used here - 5 minute, 15 minute?

Grant.
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Old Feb 23, 2008, 10:42am   #38
 
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Quote:
Originally Posted by Splitlink View Post
Last night gave an example as to what can happen in overnight trading. As long as you are prepared for these sort of things--- OK! But a nasty surprise for a lot of short traders on Footsie and one of the reasons that I prefer day trading.

I have not checked as to why that happened, but it did. Curiously, it was not a flash spike as they, often, are but took an hour to develope.

Split

If it gets a bit higher on Monday
I will be able to short it again
made a lot of points over the last few week doing this
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Old Feb 23, 2008, 10:48am   #39
 
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Splitlink,

Could you explain to me what the ftse 100 has in correlation to the ftse 100 futures and do these two effect one another...?

Do you have the ftse 100 closing price and ftse 100 futures closing price?

Thanks.
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Old Feb 23, 2008, 12:32pm   #40
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Splitlink,

Could you explain to me what the ftse 100 has in correlation to the ftse 100 futures and do these two effect one another...?

Do you have the ftse 100 closing price and ftse 100 futures closing price?

Thanks.
FTSE futures price is the cash price plus cost of carry (expected dividends and interest cost of a hedge). It's theoretically arbitrage free. You won't be able to arb between the cash and futures bets as there's an overnight carry cost.

Actually, I lie. Once in a blue moon, they'll type the cost of carry number in their model a bit wrong, and then there'll be an arb.

Anyway, regarding the big overnight move, as Trader333 says it's down to moves in other products. I had a look at some sites last night, and if I recall correctly the spread is 10 points. If someone paid me sufficiently, I'd be more than willing to quote a 10 point spread in ftse all night. All you need is to know the correlation of the ftse against the ES. To know the approximate range of movement. And to then use an autospreader to quote the price.

Good luck!
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