Other methods of trading the Dow...

[nkruger]

As a new trader, I would be grateful for some advice on trading the Dow with something other than spreadbetting. There are lots of threads from members complaining about the methods of the SB companies once a trader gets profitable.

What other methods have members used successfully to trade inra-day & End of Day ?

Thanking you all in anticipation.

Nick

 

[dcraig1]

Futures - YM
ETF - DIA
Options

 

[Jack o'Clubs]

Look at trading the YM futures through FuturesBetting/TwoWayFutures. Direct market access through a spreadbet wrapper, so best of both worlds. Disadvantages are that comms are relatively high (say compared to Interactive Brokers) and that as a new trader you might not want to trade in YM size (equivalent to $5/point in spreadbet terms) or put up FB's £5k min account size.

 

[nkruger]

Thank you dcraig1 and Jack o'Clubs. Forgive my ignorance, but could explain what YM Futures & ETF - DIA are ??

Thanks a million.

Nick

 

[Jack o'Clubs]

YM futures are the 'mini-dow' futures product based on the Dow-Index. See here: http://www.cbot.com/cbot/pub/page/0,3181,1560,00.html

ETFs are Exchange Traded Funds: ie you trade it on the (US) stock market, just like a company share, but it moves with the Dow. DIA is the three-letter code for the Dow - type it into any stock quote system and you'll see.

 

[nkruger]

Thank you very much Jack o'Clubs, that's a great help. In the last half an hour I have a weeks worth of reading. Brilliant. The cbot link was especially useful......

Happy trading,

Nick