All things FTSE

[smccreedy]

Hi

This is my attempt to unite the Weekly index thread and day trading the FTSE thread.

I like the idea of an 'All things FTSE' thread as there is a cross over of ideas.

If some posters are posting longer term charts and ideas on where the FTSE is heading it can only benefit the shorter term guys and vice versa.

I'd also like to open up discussion on how people trade ie what size and timeframe.

I've made no secret of my belief that Direct Access is the way to go as from personal experience it seems much easier to make money this way.

All I'd say is that if you are making money spreadbetting you'd be making a lot more direct access with better fills, smaller spreads, lower costs and if you want a larger size too.

I hope the posters who are using day trade the ftse and the weekly thread don't mind my idea of a definitive FTSE thread.

Thanks

Stephen McCreedy

 

[smccreedy]

To get the ball rolling here are two FTSE charts, one week hourly and three months daily.

I'm a firm believer that even if you are scalping to see which way the balance of power is can help.

If the market is steadily going higher it alerts you to perhaps take smaller sizes and losses and profits when scalping the short side.

It also tells you hold on longer for your long side scalps as they might go further faster than you imagined possible.

My personal position is that I am short of the Jun FTSE from 6,472 around where we are now, I've dipped in and out once or twice to slightly improve my standing but essentially I'm holding this short based on the US Futs getting softer.

If it starts to go against me I'll be out fast as this market could put on 30 points with no retrace off one vague bit of data.

Stephen McCreedy

 

[smccreedy]

Here they are!

 

[demontaz]

New thread

Hi smccreedy,

I will post my trades in here from now on to try and get with the rolling ball (trend is your friend :cheesy: )

For those that have not read my other posts, I am trading only the FTSE index and now also some FTSE 100 stocks. This is because of the lower margin required which suits my lower bankroll.

Smccreedy, I like the idea of Direct Access but at this time I can not afford it. This is something I would like to aspire to

Recap on my trades:

Had a SHORT this morning for a +5
Currently LONG @ 6450 with +15 locked in
Also LONG on Tesco @ 456.7

* All my trade entries and exits include spread as not to skew results

Thanks

Jay

 

[smccreedy]

Great long.

Are you posting cash prices, ie you are trading the Daily FTSE contract?

I was 16.5 points up before comm this morning before going short at 67,79,94 (rule about averaging losers springs to mind!).

The 94 should be salvagable and perhaps get a little closer to the 79 but I have to accept the rush of blood and very wrong trading will cancel out this morning's winnings and perhaps more.

I won't keep all three open overnight so will have to look for some kind of weakness to exit one or two of them.

Fingers crossed for some pull back at some point!

Stephen McCreedy

*All prices are June Future ie 67 is 6467 etc.

 

[demontaz]

FTSE prices

I know what you mean about rush of blood trading, I always try and say to myself "Why are you in such a rush to lose money?

But sometimes I do the stupid thing and chase the money.

I was a little worried at my LONG as it looked like it was gonna go south but then it exploded.

My prices are all Daily cash prices from Finspreads. I will probably hold them overnight as I can watch them. I do know that the FTSE spread increases to 6 (from 2) at around 18:00 BST. So if that stops me out then so be it, I have locked +30 so I won't be stingy.

Jay

 

[smccreedy]

Good work.

For me I'd exit now as some shakedown going to the close wouldn't be that surprising as people will doubt (wrongly or otherwise) the sustainability of wall street gains overnight.

You can always get back in.

Stephen

 

[demontaz]

Yeah it does look like it is topping, my MACD is making lower highs, but I will let my SL take me out. It is only 3 points away from it so may as well leave it.

My Tesco trade is looking ok as well, SL moved to +0.3 locked

Jay

 

[smccreedy]

Ok well if you're trying to devlope a plan and that plan means getting stopped out for exit than good for you to sticking to it.

On balance second guessing your stop will most likely get you a little more profit four times out of five and give it back and more that other time.

If you can devlop the discipline to stick to your plan you're already ahead of 90% of traders out there.

That means they're going to be sending money from their account to yours and not the other way around.

Good for you, and well done on that trade.

Stephen

 

[demontaz]

Thanks Stephen,

I appreciate all the information you give me. I was indeed stopped out for +30 but as I said earlier, that's fine by me.

Lets see what tomorrow brings

Thanks again

Jay

 

[Ziff]

Hi

This is my attempt to unite the Weekly index thread and day trading the FTSE thread.

I like the idea of an 'All things FTSE' thread as there is a cross over of ideas.

If some posters are posting longer term charts and ideas on where the FTSE is heading it can only benefit the shorter term guys and vice versa.

I'd also like to open up discussion on how people trade ie what size and timeframe.

I've made no secret of my belief that Direct Access is the way to go as from personal experience it seems much easier to make money this way.

All I'd say is that if you are making money spreadbetting you'd be making a lot more direct access with better fills, smaller spreads, lower costs and if you want a larger size too.

I hope the posters who are using day trade the ftse and the weekly thread don't mind my idea of a definitive FTSE thread.

Thanks

Stephen McCreedy

Right !

Is the main meeting place for FTSE traders ?

See you here tomorow for some live trading ?

Ziff

 

[smccreedy]

Yes, I'll be around. It's looking like more to the upset unless the US REALLY sells off, 40 or so points profit taking won't be enough a real sell off to spook the bulls otherwise I'd think it will be business as usual to the upside.

Stephen McCreedy

 

[demontaz]

Me too

Ziff, what are your strategies / analysis for the FTSE. What kind of indicators do you use?

 

[smccreedy]

My current set up has been a 5min chart with a 9 simple average as a defining line between buying and selling. I don't always buy or sell on a cross of it but if a market is trending strongly I'll use pull backs / bounces to it as a point to get with the trend.

I also use MACD and RSI as indicators for perhaps when something is overcooked or for when a quiet area is going to break out.

I 'scalp' I suppose it would be called and a typical day might be 10 trade with profits and losses in the region of a few ticks and a net balance of maybe 12 ticks a day.

That is all fine in theory but of course it's the blowouts that undo the weeks of good work. They are less and less now and in the main I'm pleased how I'm doing.

If only I could keep it up, make a few £s and walk away each day I'd be doing fine. Same old story for most people I guess, self sabotage reducing how well we are doing.

This would be a typcial FTSE chart for me although the last couple of days' price action has been quiet strange actually which makes them look funny.

I trade direct access through Interactive Brokers which costs £2.06 to open and close a trade. I trade from one to three contracts (£10 - £30) a point depending on conviction.

Stephen McCreedy

 

[demontaz]

Morning

Morning

Well another day at the 'office'

I opened a LONG at the opening bell @ 6500.5

SL at breakeven

Tesco trade still open and in profit

Jay

 

[smccreedy]

Morning

I was a little later in this morning as usual as I was quite relaxed about my ovenight short.

The open has taken me by surprise I must say. When I left last night the US had softened a little.

Can't see and major news to justify this and the volumes in the US didn't set the world alight. Still it doesn't make sense to stand in front of a train so I'll stand aside for now.

Stephen

 

[demontaz]

True about the train...

I have looked back over a few days / weeks and it seems that the 8 am direction usually holds for some decent points, on rare occasions it seems to do a major reverse and drop like a stone only to come back up a hour later or so.

My TA said LONG from about 7:35 this morning but it was too early to open as the spread was still 6 and that would mean a risky trade (my stops are always 10, including spread)

 

[smccreedy]

It's a spike through recent highs but we'll see if there is enough in the tank for it to keep going.

During one of the best trading spells I've ever had I made a rule not to trade untill 8.30 or later.

It worked for me as the open can be hard to judge. If you have a position from the night before it's even more emotive. In my case last night I went home short after closing half of my position at 6485 last night around 5.30pm only to see the market around 50 points higher this morning. This can lead to averaging down a losing trade (Sin number 1) and all sorts problems, you can set your mindset that it 'has' to fall for the rest of the day when really it might stay up here or even creep higher.

I think not trading till 8.30 can be a useful rule. I deliberated got to the office later today as I am often here around 7.30 and that can lead to you 'wanting' some action by 8.00 whether it's a good trade or not.

Stephen

 

[Ziff]

Me too

Ziff, what are your strategies / analysis for the FTSE. What kind of indicators do you use?

Nothing complicated............I use a 7 and 20 EMA on a 5 min chart with MACD. 10 point stop on all positions and close one third as soon as in 10 -12 points profit, moving the stop on remainder to BE. Then trail it...........

Do you trade cash or futures demontaz ?

 

[demontaz]

My trades

Hi Ziff,

I also trade the MACD, I started yesterday with also a 7 / 20 ema cross but I felt I was getting in too late. I now trade the MACD with a confirming ema on a 5 mionute chart. Sort of the same but in reverse. So far it has been good to me

My last trade was stopped out at +20. This is in accordance to my strategy so I don't mind.

Tesco was also stopped out with a +0.6 profit. Profit is profit no matter how small :cheesy:

I am now SHORT @ 6506.0 I missed the really good entry at 6510 but I was on the tube and I can't get charts on my mobile

Forgot to add that Ziff, I trade Cash prices off of Finspreads