DowJones Advice Needed

[Perrington]

Hi all

Iam relatively new to trading, and find the volatility of the Dow is quite interesting to say the least.

My question is, what are the factors that make the Dow move up and down so much throughout the day ? My first instincts tell me that Government data, company performance and crude prices are the main indicators, am i on the right track with this ?

Also what other indicators affect the price of the Dow ?

Where do I go or subscribe too, in order to get the company data in real-time before it fundamentally changes the market, (or is this too much to ask). Are there any free services ? even delayed ones will do until I see how certain results affect price.

Do any of you traders make money from trading the Dow based on the factors I have mentioned, if so, could you point me in the right direction please.

Thanks for any help and advice any of you offer.

 

[ChartMan]

Hi all

Iam relatively new to trading, and find the volatility of the Dow is quite interesting to say the least.

My question is, what are the factors that make the Dow move up and down so much throughout the day ? My first instincts tell me that Government data, company performance and crude prices are the main indicators, am i on the right track with this ?

Also what other indicators affect the price of the Dow ?

Where do I go or subscribe too, in order to get the company data in real-time before it fundamentally changes the market, (or is this too much to ask). Are there any free services ? even delayed ones will do until I see how certain results affect price.

Do any of you traders make money from trading the Dow based on the factors I have mentioned, if so, could you point me in the right direction please.

Thanks for any help and advice any of you offer.

The first mistake is thinking that by getting company data real time, you're going to be able to take advantage of it. The market doesn't work like that!. By the time the news hits the street, the market has long since factored it in.
What does affect the price is the general market statistics such as "non farm payroll" figures or interest announcements. These all happen at regular intervals( daily). Those that have open positions during these announcements are taking a huge risk, so generally it's not done. You might get lucky , once or twice, but sooner or later you'll get burnt.
There's no easy way to get rich trading the Dow or anything else.. You just have to go with the flow and learn its characteristics. There's plenty of other discussions re Dow strategies and trading under "INDICIES".
If you want more volatility than the Dow, look at FX threads....

 

[josbarr]

And keep an eye on earnings announcements.

 

[DIN]

first, remember what the index is constructed from, 30 stocks on a price weighted basis, i.e. the stocks that have a bigger $ price make the index move more than those with a smaller price. This is important as very good or bad news or United Tech or CAT (that have high $ prices) will move the index. - this is even more important during earnings and warnings.

second, you nead to read, read and read some more to get a feel for sentiment and what is going on, what is moving the market, lately its been oil, in the past its been corporate scandal, who knows what it will be in the future, the point being it changes all the time and you need to have a feel for how the market will take it.

third - and this is strongly linked to number 2, you need to be aware of when the major economic releases are, e.g. last friday in month (In think) relased at 1.30 UK time, weekly employment data thursdays 1.30pm, look for the 4 week average figure, consumer sentiment etc etc. these data cab compound other news that is around, e.g. terrorism scare plus bad economic data = down days

The important thing is to absorb as much info as poss, observe and then form your own opinion. takes time but if you are into it then its fun (at least I think so anyway)

good luck with it.

 

[DIN]

sorry, I'm talking about payrolls in point 3. should jave read thru it before sending!

 

[Perrington]

Thanks for your input gentleman,

I suppose there is no quick fix, just a matter of observing, and linking together events with price movements.