Hi Ben and Goldbug,
Welcome to T2W.
1. Which indicators do you use, and what do you hope to learn from their movements?
It's a bit of a generalization but, nonetheless, it's fair to say that indicators are about as popular as a fart in a lift right now. Some folks will tell you that they simply don't work and if they do, that they won't do so for very long. E.g., a moving average cross over will work well in a trending market but, when the market becomes rangebound (which it inevitably will sooner or later), they fail miserably. Others will say that they work just fine. In reality (well, my reality anyway), how well they do or don't 'work' is based upon the expectations you place upon them. To my mind, a 10 period moving average does a consistently good job of displaying the moving average over the previous ten periods - 100% of the time. Ditto with a 20, 30, 40 and 50 period MA etc., etc. Does it tell me which trade to enter / not enter and where to set my stop or take my profit? No, it does not. Does it make me a better or more profitable trader? No, doesn't do that either. It just shows me in a clear and graphic way the moving average over the past X periods.
Where does this leave us? IMO, the best way to approach to indicators is to start with a specific problem that you want solved. For most traders, top of their list is when to get in and out of trades. Generally speaking, indicators aren't great at doing that because, like us, they can't predict the future. However, they can do some things very well that are extremely useful to traders. For example, many traders of U.S. equities (and other markets too) use ATR as a means to measure volatility and, from that, they can work out their position size and stop placement. So, if you have a specific problem you want solved, then look and see if there's an indicator that can solve it - not the other way around. If you think there's an indicator that's going to make you a fortune - you're likely to be disappointed. After all, if such an indicator existed, we'd all know about it and be using it!
2. How long do you trade in a session / how many trades do you generally complete in a session?
The number of trades will vary from one trader to the next and range between zero and many hundreds. The answer for each of you (and everyone else too) is to trade the number of times that your methodology indicates that you should. The figure this generates isn't important. As for the amount of time one trades, this too is governed by the trader's methodology and trading plan. Some peeps set time limits, some set profit targets and stop loss targets and carry on until one or other of them is hit. It really doesn't matter much what you do. But what does matter is that you do what you're most comfortable with and works for you the best. One man's meat is another man's poison.
3. Where do you recommend putting the stop loss? I often just watch closely and close it if it's a bad trade.
Arguments have raged over this question for years and will continue for a while yet no doubt. There's no right or wrong answer: again, it's what works best for you. To 'watch closely and close it if it's a bad trade' strikes me as being a perfectly sensible approach - with the caveat that I'd recommend an emergency stop - set beyond where you might expect to get out - just in case of a software freeze, power cut or some other system failure.
4. Are there any good methods for newer spread betting traders to get going?
Yes - read the Stickies and FAQs in the First Steps Forum!
Enjoy.
Tim.
