China's FTSE 100 swing trades

This is a discussion on China's FTSE 100 swing trades within the Trading Journals forums, part of the Reception category; Originally Posted by China Diapers Hey. FTSE 100 because I am UK based and am more familiar with the stocks ...

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Old Aug 17, 2012, 11:00am   #9
D70
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Re: China's FTSE 100 swing trades

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Originally Posted by China Diapers View Post
Hey. FTSE 100 because I am UK based and am more familiar with the stocks and what's going on in the news.

It's early stages so if it turns out FTSE stocks are too expensive I will look into trading US stocks.
Assume you're doing this on CFD or spreadb'ting.
If so, make sure you check the cost of spread before trading. Put in a threshold of max cost of spread. For example, BP is relatively cheap, Paypoint is relatively expensive.

If you have to trade forward months vs rolling cash. Rolling cash is cheaper than the forward months (unless you're holding the trades for a long time which I dont think you are).

Costs are EVERYTHING.
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Old Aug 17, 2012, 11:31am   #10
 
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Re: China's FTSE 100 swing trades

China Diapers started this thread The amount of money I am using is too small to justify CFD's so using spreadbets, rolling cash.

I will keep an eye on the spreads, thanks.
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Old Aug 17, 2012, 11:34am   #11
 
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Re: China's FTSE 100 swing trades

Agree with D70. the spreads on FTSE 100 stocks vary wildly, so maybe create a spreadsheet of the FTSE 100 and input the spreads of each stock from your broker, and then calculate the percentage that the spread is. Then you can filter out any stocks that are too expensive.

For example on IG index as I type BP is 453.75 - 454.75, which is a 0.219% spread, whereas Paypoint is 685.8 - 696.7, which is 1.56% spread.

So if you insist on trading the FTSE stocks, then give yourself a spread limit as D70 said and don't trade anything that is above it, as starting a trade 1.56% down is just silly. Max of 0.5% or less ideally imo.
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Old Aug 17, 2012, 11:47am   #12
 
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Re: China's FTSE 100 swing trades

China Diapers started this thread OK OK OK. I will do some research this weekend and if it really is a no brainer to trade US stocks I will have to consider it
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Old Aug 17, 2012, 11:48am   #13
 
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Re: China's FTSE 100 swing trades

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OK OK OK. I will do some research this weekend and if it really is a no brainer to trade US stocks I will have to consider it
Good stuff
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Old Aug 17, 2012, 12:29pm   #14
 
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Re: China's FTSE 100 swing trades

Here's an excel file with the FTSE 100 stocks and the bid, offer and spread % for you to fill out. Just put the bid and offer prices in and it will calculate the spread for you.

I've set the GOOD highlight to be anything under 0.5%, but you can edit that to whatever you want. For example if you want it to be anything under 0.25% then this would be the formula:
=IF(D2>0.0025,"BAD","GOOD")
Attached Files
File Type: xls FTSE 100 Spreads.xls (39.0 KB, 113 views)
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Last edited by isatrader; Aug 17, 2012 at 12:52pm.
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Old Aug 17, 2012, 12:51pm   #15
 
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Re: China's FTSE 100 swing trades

China Diapers started this thread Thanks. Glad I started this thread.
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Old Aug 17, 2012, 1:00pm   #16
 
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Re: China's FTSE 100 swing trades

Here's the S&P 500 stocks excel file. Same thing but with the good set to below 0.25%. Again you can change to whatever you like once you've put in the spreads.
Attached Files
File Type: xls SP500 Components Spreads.xls (89.0 KB, 203 views)
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