Does Anyone make money on indices?

[Zenda]

I was talking to a World renown trader yesterday - A succesful one! he asked what I traded - I said simply USA shares - He asked me if I knew anyone who made money trading the indexes - I couldnt think of one! - However you may know differently! Like to hear from successful index traders (DOW & FTSE DAX etc).......

 

[Trader333]

It depends what you mean by Index ? Do you mean SB the index or do you mean trading the Index future ?

There are a number of successful Index futures traders who regularly post on here, I however dont trade futures.


Paul

 

[Zenda]

Spreadbetting the FTSE & the Dow daily me thinks - Long term futures - are usually succesfully traded as hedges - etc.

 

[options]

Short term intraday ftse/emini dow real futures.

Longer term swings on the sb's for tiny stakes.

 

[sidinuk]

Oh John why do you do this!

On another thread you have posted your finspreads account showing quite a number of index trades over a one week period, presumably to prove how easy it is to make money. Now here you say that you don't know anyone who successfully trades indexes.

And people accuse me of inconsistency!

 

[Finlayson]

I only trade indices ......particularly the DAX & SWISS, find the FTSE little more difficult, but my strategy does work on the FTSE.

the person I learnt from, really has only ever traded one index successfully for years.

cant see what difference it should make as they are only instruments & if u r just trading 'events' in the market, then it is just about learning your own personal choice of instrument

jay

 

[kevinmcm]

Yes. S&P 500, sometimes FTSE. I trade on a private board where some of the traders make a living from DOW trading alone.

Kevin.

 

[stevem12]

Yes John, thank you for asking.

This is such a thinnly veiled advert for the originators course that it beggers belief!!

Consistant profits can be made with any instrument, as long as you have the method, money management and mentality right.
And to my way of thinking, the right mentality is not getting shirty on other threads when people asked,reasonable, questions about ones results/method

Steve

 

[FTSE Beater]

Hi JohnB

To name just a few:

Skim
JPWone
St.Luke
JonnyT (I'm not 100% sure, but I'm sure he is)
Mr.Charts

Apologies to all those I've forgotten, the memories not what it used to be

 

[Trader333]

FB,

I dont think Mr Charts trades indices, did you mean Chartman ?


Paul

 

[FTSE Beater]

Hi Paul

No, I believe Mr.Charts dabbles in the indicies occasionally - ah ok, maybe shouldn't have been on the list
Now I think about it, I know more profitable stock traders than index traders

 

[Trader333]

I may well be wrong but if so I havent seen it posted.


Paul

 

[JonnyT]

For the record I have not made any profits on Index trading. After nearly two years I'm down around £1500.

I've not done this seriously as I have a full time job so have basically been tinkering and trying to write Black Box solutions.

Now I'm at the point where I have backested and forward tested positive expectancy systems. I'm now going to play them seriously through Software I've written to integrate with IB.

The back test results are very good and if I get what they have historically then with money management I could get a 300-400% return in 1 year.

To that end I have cashed in PEPs and ISAs. I'm mixing day trade and position trade systems on the ES and position trading a basket of Commodities. Position trades are via Spreadbets for now as the spread isn't an important factor for such trades given the Tax Free status.

I'm also considering buying a system and running it through TradeStation 7.1 There are several commercial systems that have returned 150%+ per annum over long periods without money management. i.e. single contract etc etc.

This time next year I will either be very wealthy or have given up.

JonnyT

 

[Trader333]

JonnyT,

You have obviously put a lot of work into this so I hope it all goes well for you.

Cheers


Paul

 

[JonnyT]

Hi Paul,

Thanks. It sounds like the Stock trading has transformed you.

JonnyT

 

[DanielLambert]

John,


You should go into the chat room , there are numerous guys (and girls!.... BB take that dress off!) who trade full time every day on DAX , S&P and Dow who make decent livings!

 

[Mr. Charts]

FTSE Beater is quite right. I have traded FTSE futures and emini S&P and Nasdaq futures - on the real market with direct access and very successfully over a period of time. However, I do find day trading US shares much more profitable, consistent and far less stressful. Shares are actually much easier and more intellectually stimulating.
JonnyT,
You are following a long and winding, much travelled road. There isn't a Holy Grail and like normal travelling it can sometimes be fun, but unlike normal travelling, you are very unlikely to arrive anywhere.
It's a bit like trying to fly with British Airways.

 

[JonnyT]

Hi Richard,

I agree no Holy Grail.

The problem I have is that I currently have a well paid job in IT. I am sick of continuously having to take exams just to stay still. I'm 40 next Birthday and want out.

I also have a young family. To trade US stocks I would have to give up my job. This is a huge risk given the circumstance. I fully accept that discretionary trading on US Stocks is the way to go long term. However I will feel happier if I have other established cash flows.

My battle plan is thus:

1) Establish strategies that generate a positive return on Indices using black box technology. Some do work, but I accept it may be a rocky path.

2) Attend Mr Charts course and maybe Naz's at a later date.

3) Trade US Stocks in conjunction with the black boxes.

4) For my family and I to be happy.

JonnyT

 

[bonsai]

JB
I specialise in ftse trading.

my question is how can people not make money trading the index ?

 

[grubs50]

JonnyT,
maybe u r spending too much effort and money on tools and software and not as much effort into understanding the principles and fundamentals of trading. U can make money from anything as long as u have the self-belief.