newbie needs advice on SB strategy...please

[silverpuma]

Hi, I have went through the igindex training Tradesense and with a initial £350 after 8 trades both long and short I have made the tidy sum of £14 These trades where really to see how the platform worked and as an introduction to SB for me. With IG I could trade in points=0.20p, then ).50 and finally 0.70p so it was a good place to practice.

Now to my question. This is probably old hat to most of you but is this a reasonable way to trade the footsie 100 or say Rio Tinto (because of its large price movements).

1. Say the FTSE is sitting at 4500 and I don't have a clear sense what the markets doing.

2. Is it a fair strategy to, for example, place 2 orders: one to buy the FTSE if it moves up to 4550 and the other open to order sell if the FTSE falls to 4450.

3. This way I'm covering am significant market moves. Of course I'm not getting in at the bottom or top of a move but I'm catching it perhaps midway and can set a stop to get out with a small profit......if all works out ok

I don't know any of the technical terms for this except I think this may be momentum trading??? Any advice or correction would be great and well received...........thanks

 

[foredog]

1. Say the FTSE is sitting at 4500 and I don't have a clear sense what the markets doing.


DO NOTHING!!

2. Is it a fair strategy to, for example, place 2 orders: one to buy the FTSE if it moves up to 4550 and the other open to order sell if the FTSE falls to 4450.

There's as good a chance it'll hit your entry and fall back than it'l go up further, the market may be in a channel and not be breaking out.

Although i do know of a trader who has a methodology which has trades a fixed point from the open, it's a st and leave method where he aims to make maybe 300+ points on the winners but only 50 losses. the link is in one of the links in my signature if you want to read it. (infinite yield)

 

[silverpuma]

Thanks foredog, I'll have a read at your link in signature.

Although i do know of a trader who has a methodology which has trades a fixed point from the open, it's a st and leave method where he aims to make maybe 300+ points on the winners but only 50 losses. the link is in one of the links in my signature if you want to read it. (infinite yield)

 

[shadowninja]

Straddles just don't work (or everyone would be doing it as it's so simple).

That said, test it out FOC on ETX.

 

[alan5616]

Hi, I have went through the igindex training Tradesense and with a initial £350 after 8 trades both long and short I have made the tidy sum of £14 These trades where really to see how the platform worked and as an introduction to SB for me. With IG I could trade in points=0.20p, then ).50 and finally 0.70p so it was a good place to practice.

Now to my question. This is probably old hat to most of you but is this a reasonable way to trade the footsie 100 or say Rio Tinto (because of its large price movements).

1. Say the FTSE is sitting at 4500 and I don't have a clear sense what the markets doing.

2. Is it a fair strategy to, for example, place 2 orders: one to buy the FTSE if it moves up to 4550 and the other open to order sell if the FTSE falls to 4450.

3. This way I'm covering am significant market moves. Of course I'm not getting in at the bottom or top of a move but I'm catching it perhaps midway and can set a stop to get out with a small profit......if all works out ok

I don't know any of the technical terms for this except I think this may be momentum trading??? Any advice or correction would be great and well received...........thanks

It's funny how, because we live in the UK, our first trading steps are usually taken on the FTSE. This was, certainly, the first market I traded. In fact, this is one of the most difficult and erratic markets to trade. If you want to trade equity indices why not consider the DAX, Dow or Russell 2k. Imho, these markets offer greater opportunities for profit.

As shadowninja says; straddles don't work. This is not the best way to trade. Why not consider the forex markets? They have high liquidity and plenty of momentum.

 

[silverpuma]

Straddles just don't work (or everyone would be doing it as it's so simple).

That said, test it out FOC on ETX.

Ah, so its called "Straddles" I guess this makes sense Sorry for being so dense but what is "FOC on ETX" Thanks

 

[silverpuma]

It's funny how, because we live in the UK, our first trading steps are usually taken on the FTSE. This was, certainly, the first market I traded. In fact, this is one of the most difficult and erratic markets to trade. If you want to trade equity indices why not consider the DAX, Dow or Russell 2k. Imho, these markets offer greater opportunities for profit.

As shadowninja says; straddles don't work. This is not the best way to trade. Why not consider the forex markets? They have high liquidity and plenty of momentum.

Thanks for the advice. I'll have a look at the forex markets and the DOW, DAX .

 

[jackolan]

what is "FOC on ETX"

FOC = Free of Charge
ETX = Financial Spread Betting | CFDs | Spread Betting Accounts | ETX Capital

 

[Claudia123]

Agree with Alan5616 forget FTSE - try forex GBP/USD, EUR/USD to start. I'd be careful trading the Dow until you have a bit more experience but just my opinion.

 

[jak672]

Silverpuma, with respect, you seem pretty clueless. Thats perfectly understandable as a newbie. I'd recommend reading 'Come Into My Trading Room' by Dr Alexander Elder - it is the single best book on trading I have read, and will really help you. Also if you are interested in trading, you need to have a system. Doesn't have to be too complicated, but simply putting in a couple of limit orders blindly won't cut it. Look into fundamental analysis if you're interested in longer term trading, or technical analysis if short term orientated. They are by no means exclusive to these time periods, but definitely more suited to their respective ones. Good luck!

 

[silverpuma]

Silverpuma, with respect, you seem pretty clueless......... Good luck!

Thanks for this jak672..........I think....... But you're right and I do need to spent some time reading and learning. I'll look up the book you mentioned in amazon as a possible purchase.

But ME....clueless.....you don't know the half of it. With some of the mistakes that I have made over my 50 years ringing in my ears "clueless" nearly sounds like a compliment!!!!!!!