Daily Dow

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christoff

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Hi all I`m looking for a little advice so I thought I`d start here.

I`ve been following and trading the Dow @ 50p for a while, using basic TA on graphs of the mini s+p and Dow futures, then trading the moves on Fins.

I`m looking to move up to the heady heights of £2. I also intend to move to D4F . I`ve heard a lot about re-quotes, although I`ve not had it happen to me @50p.

I know this maybe a can of worms but here goes, will I get a lot of re-quotes at this (relatively) low stake? I`m looking to move to the mini Dow futures eventually and am aiming to make the last £1K I need from my spread trading. Would I be better to save the money, this will take about the same time as making it @50p bets, up to 6months, or is D4F viable?

Thanks

christoff
 
I don't have problems with re-quotes with Deal4free but I prefer the Finspreads stop system. With Finspreads I have found they don't stop me out unless the cash price goes through my stop. With Deal4free, one touch with their quote and my stop is triggered.

One other point. Finspreads stops are linked to trades so that when you close a trade, the stop order is automatically deleted. Deal4free don't do this. Each stop or limit order has to be canceled after closing a trade. On two occasions I have been unable to cancel a stop and have triggered a trade I didn't want to be in.

I presume you are using Finspreads and if you are making money with them, I would stick with them until you can open a futures account.

Deal4free are excellent for share bets but I prefer Finspreads for trading the Dow and S&P.
 
genti-thanks for that link, I`ve seen these calculators else where, the levels offer good S/R some days.

Big business- I`ve tested dozens of trades with simultaneous quotes from both firms. This shows I would consistently make more with D4F. Mainly because their closing price is better than fins, so you win more and lose less. But this would only be true if they don`t keep re-quoting. As for stops I never place them in the market but draw a line on my futures graphs, this works well for me.
 
christoff said:
I`m looking to move up to the heady heights of £2. I also intend to move to D4F . I`ve heard a lot about re-quotes, although I`ve not had it happen to me @50p.
Click to expand...
Hi Christoff

Welcome to T2W :)

Just a small thing I picked up on. I wouldn't jump straight from 50p to £2 stake in one hit. I would be more tempted to trade at £1 for a while (if nothing else it's just to get used to the system)

HTH :)
 
If you can make more money with deal4free then it would be worth trying them. I haven't had many problems with re-quotes. Occasionally the software has caused a problem but that seems to happen with all the spread bet platforms. I prefer Finspreads on the phone if anything does go wrong.

Are you sure about not using stops? It's easy at 50p a point but at £2 a point, a large move could cause a big loss. If there is a spike, that is when you will most likely see the re-quotes.
 
Bigbusiness, where can i open a futures account to trade the Dow. It seems sometimes paying a small commission is better than paying a volatile spread. PeeDee.
 
Cheers BB, ill look into this one. Im just trying to get over spreads, they are a pain whatever way you trade if you are into spread companies. Cheers, PeeDee.
 
FB is right , move up slowly- 50p to a pound is a big jump....Has your capital gone up by at least as much? I'm not sure dow futs is a good idea.... S&P500 futs would be the vehicle of choice, with IB perhaps but it's 50$ per contract per point. That's about £5 per dow point.Spread is always 1/4 point, no bias and fees are $12.50. Stick with fins- you know how it works why change?
 
No, Skim, Just a case of brain failure :( Thx for the correction
Gear your bet to the risk limt- absolute max is 1% of capital. So 20 point stop on dow = £20 so thats £2k capital MINIMUM!!!! You'll stay in the game longer. Better still, try 0.1% and a bigger stop say 30 - 40 points.... but thats £20K capital:(
 
alanb41252 said:
What level of capital do you realistically need to trade at GBP 1 per point ?
Click to expand...

Hi Alan

It depends on the size of the stop you are considering using. You shouldn't be risking more than 1-2% of your capital on one trade. So say your risking 30 points = £30. That means your account would have to be £1500 to avoid risking more than 2%

HTH :)
 
1% is probably the norm, but it does depend on the size of your pot. The 'professional' traders who have been in this game years and years will probably trade with 0.25% maximum, and often 0.01% risk per trade.

Young traders look to see how much money they can make; old traders look to see how much money they can lose. :D
 
Well I did say I thought I`d be opening a can of worms :)

Thanks to everyone for their input it`s much appreciated.

as previously stated I intend to move to the mini dow, I`ve seen many people say that the mini s+p is better but I`d have to disagree. I know the e-mini`s are more liquid, but I`m going to take some time to build position size and at the rate the volume is increasing it won`t be a problem for long.

The dow moves between 75-90 percent of the number of points the s+p does (if you take 0.1 as a point on s+p) but the spread is only 40%. Also the s+p moves 10 points in just 4 ticks against 10 for the dow, giving more varied entry and stop positions.

Just my view, once again thanks for input

:D
 
It's the ratio of the dow to the S&P at any one time. It varies between 9.2 and 9.5 ish... One sometimes moves more than the other. 500 stocks in one, only 30 in the other.
 
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