I want to trade the dow( cash ), not futures, on a daily basis. I dont want to use an SB firm for obvious reasons so the alternative seems to be IB. Would this be possible, if so is there a type of trading platform where i can input my own settings( until changed ) i.e. amount/tick and stop losses etc so that at a click of a key the trade is instant. Cheers, Peedee.
rossored
Senior member
- Messages
- 2,103
- Likes
- 56
Peedee I'm not being funny, but havent u asked this question about a million times already? 
As Jonny says, you can either SB the Dow cash and have a spread of between 5-11 points depending on broker, or you can trade Dow (YM) Futures via a direct access broker like IB : the mini Dow (so called because of the $5 contract size) offers typically a 1-2 tick spread, and stops etc wherever you choose.
i.e., a $5 future contract bought at, say 9400 and sold at 9420 would net you 20 x $5 less commission and of course you will pay tax on this, which you won't pay on a SB.
Edit :
And yes, you can get realtime charts for Dow futures.
As Jonny says, you can either SB the Dow cash and have a spread of between 5-11 points depending on broker, or you can trade Dow (YM) Futures via a direct access broker like IB : the mini Dow (so called because of the $5 contract size) offers typically a 1-2 tick spread, and stops etc wherever you choose.
i.e., a $5 future contract bought at, say 9400 and sold at 9420 would net you 20 x $5 less commission and of course you will pay tax on this, which you won't pay on a SB.
Edit :
And yes, you can get realtime charts for Dow futures.
Rossored, at least i know people read my threads and take note, thanks for the reply mate, i did have a slight smirk on my face when putting this one on, but to be perfectly honest i dont know where to go into what i want to do( if you know what i mean ). Ill explain, the volume charts i get are good( Market Volume, US ) not a plug by the way, i can get a really accurate indication of where the market is going, but its not futures. Ive been using Trade Index for my paper trading so going from one site to another wipes stupid amounts of time off your trade, thus the title of the thread. Volume charts, instant trades and i may improve. Sorry to ask the question over and over again you never know i may ask it again( in peruvian though so people dont know who it is ). Cheers mate, Peedee.
rossored
Senior member
- Messages
- 2,103
- Likes
- 56
That is pretty much the case mate, yes.
Futures are much more volatile than the "cash" index though.
Have a look at this post that I put on for someone else, it will give you an idea of how cash/futs compare. The chart is about 3/4 of the way down the page on page 2.
http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=6159&perpage=20&pagenumber=2
Futures are much more volatile than the "cash" index though.
Have a look at this post that I put on for someone else, it will give you an idea of how cash/futs compare. The chart is about 3/4 of the way down the page on page 2.
http://www.trade2win.co.uk/boards/showthread.php?s=&threadid=6159&perpage=20&pagenumber=2
Rossored, nice one matey, im finally getting there. I can remember that particular thread though not exactly. I want to carry on using the charts ive got but use them in a relevant way to futures( Dow ), if that is possible( which i think it is ). I also read one of your threads about the ratio of amount of your total bank to the amount you risk on each trade. I personally think that 1% may be a little to low, unless you are wadded, not that you trade 1%, but what you said your stakes where per trade would to me sound a little more realistic, and why not, get your TA off and i cant see any problems unless people get greedy. Cheers mate, Peedee.( P.S. were you serious about that post ), cheers, Peedee.
rossored
Senior member
- Messages
- 2,103
- Likes
- 56
Certainly wasnt me who wrote about the 1% PD. I'm afraid I use a lot more than that each time I trade, but it hasnt caused me a problem so far. I think managing the trade is more important : as long as I know where my stop is and a rough idea of target price, then I know when to ditch it or take the profits.
