SB bias bites the dust?

[ChartMan]

Today,I was playing around with the diferences between CMC/Fins on the dow.
What I foumd was this ( bearing in mind the index was generally up all day)...
The charts used by CMC ,whilst a bit naff, DO provide us with a useful "biased" view of their prices. From these charts, one can draw support/ resistance trendlines and clearly see breakouts.In adition, the CMC tick seems to occur very much faster than Fins so you can get a feel for what the price is likely to do.I found that every time the price dropped a bit on AIQ charts, cmc charts seemed to be more stable, yet fins dropped their usual 10- 15 point bais to the downside.
This led me to some conclusions:-
1. I could hold a position that appeared to be going badly against me WRT fins because I had faith in the AIQ charts, and CMC wasn't tanking to match fins.
2. I could pick bottoms on fins very easily by watching the cmc ticks steadily increase, often jumping 4 or 5 points.This was the signal to go long, whatever the fins price.
3. I could hold my winning positions and not get panicked out by tracking AIQ RSI/CCI and cmc price/charts. Fins seemed to jump all over the place and I felt comfortable with staying in.
Overall , I enjoyed "playing" around today, but it was hard work, and I still managed to make a few mistakes, but overall I was very pleased compared to my usual efforts.
What it would be like in a faster market, be it up or down , I coudn't say......

 

[options]

Hi Cm,
Couple of points of interest to add about cmc.
I used cmc's updated software for the first time yesterday. Must say it is an improvement. At one point I had a sell order go through at the start of a downward bar and some 20 secs later covered it for 4 points on the same bar! Couldn't have done that a couple of weeks ago. (on my charts, not cmc's)
I was so impressed I e mailed the tech guys to say well done.
Got a reply back from their IT director, and they are working on new charts for the September upgrade, and hope to include Bollinger and slow stoch. I asked them to forget Bollinger and replace it with fibonacci, though I can't see 'em taking much notice of me.
Their charts are based on their prices, or so I have been informed, and not the underlying market price as I thought.
But it's good that they are striving to improve the charting software. It certainly needs it.

Options

 

[Miki]

Martin, I am not quite sure why do you waste your time playing with SBs.

Their whole operation is flawed with bias – it’s like casino fixing the roulette wheel in their favour.

The only reason they exist is because the British public is not aware of viable alternatives.

That’s why they say that the “ignorance is bliss”.

Sorry to be so aggressive, but I just hate when people are being taken for a ride.

Brits are known as “people who don’t complain”.

Maybe it is the time for that to stop.

We want cheaper cars, we want cheaper jeans, we want cheaper real-time brokers.

We deserve better!

Now, where is that Hyde park spot…

 

[Hughmac]

Miki

OK! OK! we hear you!!

but for those who are still ok using CMC then its important that you reference their charts when opening/closing a position etc.

The link to cash /futures prices is tenous to say the least (depends on how fast or volatile the market is so frequently the only real point of reference is the CMC chart itself!

cheers

Hugh

 

[ChartMan]

I've said it before Miki, There are those that have a nice big pot to play with and the world is their oyster.They can afford to drop 25K$ and go get trading US style. Then there are those like myself, that have limited funds and therefore have 2 choices. Play fins, or do nothing. So the purpose of my posts re fins is to try and find a way to a least a small edge to redress the horrible imbalance that we all know exists. Sure scalping is a nightmare, but the longer term opportuities ARE worthwhile when they occcur. Tonight is a good example. I got 103 and 123 in 2 trades plus lots of small ones- winners and losers. When the wind blows in your favour, you HAVE to ride the winners.
If I had 25K$ to trade with , there is no doubt in my mind that I would be looking at S&P/Eminis.

 

[Miki]

Martin, I am not quite sure where this 25K$ came from…

You only need that kind of money to daytrade stocks – not e-minis!

I started trading e-minis with $2,000 only!!!

I must admit it was a little bit tight and hairy in a few places but I’ve done it.

I wouldn’t recommend such a small starting capital to others – but I had enough experience to pull it off.

You need to watch e-minis behaviours for a long time before you even think about placing your first trade.

 

[options]

Miki,
Where do you get your charts from for the e mini's please?

Options

 

[Miki]

I use eSignal (was with QQL but they are no longer providing the best charting in the universe – sorry slight bias ).

 

[Naz]

Its interesting to note that even before the $25k day trading rule came out.there was a considerable amount of people,many on this site that had the oppertunity to change over but didnt.Now this $25k rule seems to be used as some kind of excuse.Remember you can still open an account for less than that if you dont want to daytrade.As others have said the e minis can be traded for considerably less than $25k even now.

I think maybe many traders find a comfort level and use what they feel easy with.There is a fine line perhaps between people betting on the markets with a betting company and others trying to become maybe more professional by taking the process further.

I am not saying that to be rude.But to point out that there are many different types of players in the market.Hopefully enough of them who want to scalp will look beyond the sb companies.

General discussions like this giving information to people help them to realise there are alternatives.

 

[monarch]

Naz

I find what you are saying interesting as I posted a thread on the brokers board last week about the capital required to start trading the Nasdaq.(If you could read it and give your opinion I would be grateful)
A couple of questions please,
When you say you don't need $25K if not daytrading?
and excuse my ignorence but what are emini's?

Thank you again for your valuable posts.

Nick

 

[Miki]

monarch, you could start here:

http://www.cme.com/products/index/products_index_enasdaq100.cfm

...and then here to watch it for free:

http://finance.lycos.com/home/livecharts/default.asp?symbols=NQU2

 

[Cigar]

Monarch

If you wish to daytrade US stocks (ie Microsoft et al) more than 4 times a week, you need $25k in your account.
If you hold overnight, it is not a daytrade. If your strategy is to hold for days rather than hours, you don't need $25k in the a/c.

A lot of people trade futures contracts, these are the e-minis.
(I actually trade the dax futures). The value of these contracts is very high to the average person, so the broker asks for a margin to be held in your account. This varies broker to broker. Typically it is $2/3/4k. You can long or short futures, and there are no daytrading rules.
My broker asks me for $3500 margin per contract and a round trip is $7. 1 point on the dax is valued at 25 euro (~£17), so, if the dax futures go up 10 points, i earn 10 x 25 euros (and vice versa)

If you go down the futures route, please check the charts of several..look for a 'nice' chart, you don't want something gapping around, because you can be sure it will gap against you. I chose tha dax because it had a decent chart, and seemed to respond well with my favoured indicators.

Don't rush into it... times on your side ..... good luck

 

[monarch]

Thank you both for your comments very helpful.

Monarch

 

[SP23]

Anyone here who uses CMC seen the demo ?

How does it compare with the fulling working version ?

 

[Riz]

Hi SP23

The demo only gives you the technical picture, when you do it for real, you find out its not an all automated system and a dealer at the other side often interfers by holding you and often requoting subsequently...that goes almost without exception esp. when market moves at the time of placing the order..

Riz

 

[SP23]

Damn !!

Been doing quite well on the demo .... oh well, thought it was too good to be true

How about the CFDs, same story?

 

[Riz]

More or less...as far as others mention it, as I only have a s/b acc with them...

Riz

 

[sltsang]

I'll second that, trading for real on CMC is much more difficult these past few days, more and more orders are being held/requoted, oh instant fills garrantee it's going against you, well for me anyway. As for CFD on CMC, I know 2 people having the same problems as SB.

 

[options]

Since CMC have speeded up the software these last few days, I've found them very good to use. instant fills and no requotes. I can't fault that.
It seems that others are still having problems though.

Options

 

[Riz]

Yes Options, very strange in the chatroom I've seen 2 people trading the same market one complaining about being held long and requoted often while the other one's order going through straight away...

Need to work harder on that imagination excersize to find out what's going on lol

Riz