Day Trade the FTSE

[datav]

Friday

THanks Murraypa. As we can all see from the chart posted, Thusday was another great day for FTSE day traders with a nice steady run down from the R2 at 6260, a brief pause at wednesdays closing price, then on down to the S1 at 6200. from that 60 point drop it was fairly plain sailing to get about 40 points. Afternoon trade in the US took the indeces back up to the opening price to everyones surprise, so another gap up is likely today. That puts us clearly back in the up trend, but as always, follow the price action. Dont place a trade, just because you think that so and so is going to happen...wait for the price to confirm, then place the trade.

Trying to pick the top or bottom, or the exact place the price will turn, is a mugs game. What we can try for is to look for a trend and try to take a piece out of the middle. 60% or more of the move, and you are doing well.

 

[murraypa]

Today's FTSE Futs

 

[datav]

Monday

Great week last week for day traders as we were in a period of consolidation with plenty of intraday volatility from 6150 to 6220 Charts indicate to me that we will see a decline from this high level this week. and if US futures are anything to go by, could be quite sharp. We might see 6100 today. This level is however the bottom of the up trend channel of the last several weeks, so It will be a key area of support and could turn the market back up again, As always, trade what you see not what you expect. I always use the hourly chart to filter my trades. If the hourly chart is down, only take short posions and vice versa.

Safe trading

 

[murraypa]

Trade what you see (if only it were that easy).

A chart for today.

Any eSignal users can find the code to produce this on my eSignal Fileshare under Indicator Combinations (free an' all).

 

[datav]

Wednesday

A couple of days of consolidation aroung the monthly R2 leaves the FTSE ready for some upside methinks. There is the gap to fill from the weekend, and the Dow and S&P have maintained their high level so far leaving the FTSE somewhat below par. So favouring the long side today. Theres an interesting free webinar put on by CBOT/CME tomorrow "Peak Performance trading" worth attending if you are free in the evening on Thursday. http://www.cme.com/edu/

 

[murraypa]

yesterdays chart, plus a little of today's with the pivots I use, as they came up in the chat room yesterday. Hope you can read them.

 

[datav]

Thursday

Well its nice to be right for a change!
The market made a steady run up about 50 points to close the gap from Friday (Future) and then followed the US markets all the way back down again! So there were 100 points to chew on for us day traders. Must confess to having some trouble going up, but caught most of the down side.
Thats left us with a big shooting star on the dailies, which makes me think we will be heading south today. Traders watch out for the monthly pivot point at 6106 for the future and 6090 for the cash. Blow by blow commentary in the T2W chat room, where I try to post my trades, winners and loosers!

Safe trading

 

[murraypa]

A chart, still buying on blue, selling on red

 

[datav]

thanks marraypa. Heres mine.

 

[murraypa]

Thanks datav,

may have to keep an eye on a 360 tick chart, it made it look easy today.

Paul.

 

[ian]

Thanks datav,

may have to keep an eye on a 360 tick chart, it made it look easy today.

Paul.

What's the 360 tick thingy?

 

[datav]

TGI FRiday

Yes, well of course it is easy with hind sight. As I've mentioned before in this forum, the battle is not with the market it is with thyself! The 360 tick seems to generate good candle formations and its my preferred chart for trading decisions. Then the 180 is also good.

End of the week and further declines have so far been avoided despite the slide in the dollar equity markets are holding up reasonably well. daily chart indicates another flat day to me, not that that matters to us day traders. In fact its how we want it. 50 point intraday volatility is perfect for day trading, so "make hay while the sun shines"

 

[Splitlink]

Well, I've given it the best part of two months and am not saying that won't try again but, certainly, I've spent much free time near the computer for no real benefit. From very successful beginnings I have gone below my starting level and have decided to go back to the more restful position trading of UK stocks and not spend any more time on index trading.

I could lay the blame on spreadbetting companies but, because of the money I made when I got it right, I think it is, purely, getting it wrong on my part that is the cause.

Take care and good trading, although this is not a definitive goodbye- I might see an irresistable system that I just have to try! :idea:

Split

 

[ukhero]

Well, I've given it the best part of two months and am not saying that won't try again but, certainly, I've spent much free time near the computer for no real benefit. From very successful beginnings I have gone below my starting level and have decided to go back to the more restful position trading of UK stocks and not spend any more time on index trading.

I could lay the blame on spreadbetting companies but, because of the money I made when I got it right, I think it is, purely, getting it wrong on my part that is the cause.

Take care and good trading, although this is not a definitive goodbye- I might see an irresistable system that I just have to try! :idea:

Split

When you’ve got it wrong, it takes guts to admit it in the forum. I tip my hat to you Splitlink.

I will say, in my opinion, to be successful with individual shares you need a good handle on the Index. So don’t give up!

For what its worth, my first three separate attempts at Spread Betting the FTSE failed with a loss of over £1500. That was two years ago.

I will add, one of the many hard-nosed lessons I’ve learned is, ‘You can not predict the FTSE’s direction every day.’ So why try. Choose your day.

Good trading with your individual stocks and shares and I’ll see back here again soon.

Yours


UK

 

[RiffRaff]

The chat room will not be the same without you.

Good luck Split.

 

[datav]

Well Split, thats the way the cookie crumbles. Try paper trading the index for a while to see if you can develop a method that gives you good results if you are still interested. But afterall, the mark of an intelligent investor is to know when to leave alone. Congratulations on making that decision before too big a dent was made in your trading account.

In the same vein as the post above, I have blown my account once or twice before learning to make money in this game. Its not easy, and requires a different approach to stock trading. Yesterday caught everyone on the back foot I think. Its key to be able to change your thinking and go with the flow, so that earlier mistakes/losses can be corrected.

Now that the trend is re-established to the north, lets see if we make a new high today

 

[Splitlink]

Thanks for the posts. This is a case of horses for courses. I find share trading easier.

Good trading

Split

 

[datav]

Wednesday

HAving re tested the high of 26th Oct, it seems likely to me that we will now see a pull back. The dollar is continuing to show weakness evidenced by the strength in gold and bonds. This is likely to lead to a decline in equities and increases in energy prices putting further pressure on the FTSE. So I will be favouring short positions today. Watch Crude closely over the next couple of days as a significant rise is on the cards now that the congressional elections are over. The FTSE will not cope well if this happens.

Good trading everyone

 

[pssonice]

when, at which level, what a about your stop

nice reading, but no essentials

 

[pssonice]

and ... by the way, your assumption failed totally

.