Thanks benji we'll have to wait and see. So I've checked over what difference a 6point trailing stop loss would make on this particular trade. First of all my risk would be increased to 0.6% of capital. The trade would haver resulted in a 1.8point loss which is not much difference in this particular trade.
I'm not so convinced the 6point trailing stop loss would make a beneficial difference, in my view, even though I haven't back tested it. What I have back tested is what I'm going to stick with.
I'm not so convinced the 6point trailing stop loss would make a beneficial difference, in my view, even though I haven't back tested it. What I have back tested is what I'm going to stick with.
Sorry I missed your question last night, scalping is fine in the real market ie futures but many spreadbetting companies disapprove of it if you are making money. With your stops being so tight I'm betting that they take you out quite a lot by moving 'their' price around a few ticks.
Anyhow time will tell but I think that's what will happen. You know with your 5k you could have opened a proper futures account and have plenty of leverage available and none of the shenanigans with SBing.
shadowninja
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Lucky you can turn off the £ profit/loss. IG doesn't allow this feature so I constantly mutter to myself the current pip size of profit/loss. Fortunately, I'm at home... so I can mutter to myself in the nude. Thought I'd share. 
My stop loss is normally 10 points. As for your stop loss I can not see the difference between 5 and 6 stop loss. I am new tho!
I am hoping that the FTSE 100 will rise above 5030.0 - but I am hoping.
I am not an expert! I wish I was. I will just keep reading my books!
Good Luck!
I am hoping that the FTSE 100 will rise above 5030.0 - but I am hoping.
I am not an expert! I wish I was. I will just keep reading my books!
Good Luck!
I didn't know that. What's the benefit of this? Are there any links you have I can look at? Do you talk about leverage like CFDs work?
FTSE can pick up after about 13.00 but anything can happen, could even stay dead or fall the rest of the day. With a 10point stop loss and an aim of 6points in the day, it sounds as if the odds are against you. You could have two losses in a row -20 and you'd need over 3 wins of 6+points to cover it. That means you have to have a lot more win trades than losing trades.
If you're on a 10point stop loss right now you should have been stopped out already. About 5008 is the lowest the FTSE went after you took your trade. Have you moved your stop in hope the market price rises?
Or am I missing something?
If you're on a 10point stop loss right now you should have been stopped out already. About 5008 is the lowest the FTSE went after you took your trade. Have you moved your stop in hope the market price rises?
Or am I missing something?
Scalping is a highly specialised procedure. I trade in the mornings and try to get as few trades as possible into the session. That is not scalping. It is trying to find the high/low for the session and, although I try hard, it takes me three trades quite often. So I use close stops so that I can regain my losses. hopefully, when I am successful.
5 points with Footsie, mate, is very close. I use 10 and that is provisional and always under review, depending on how volatile the market is at the time.
The main benefit is that you are trading through a regulated exchange with other market participants. Presently you are effectively betting against a bookie based on the price the bookie decides to give you, not the true price of the market. They may widen the spread or move the price around to some degree as they see fit, you can bet it wont be to your advantage.
You are also scalping which SB companies frown upon if you are winning, although they are probably tolerating you as long as you keep losing.
When you trade futures your broker facilitates the trade and you pay a commission, they have no interest in whether you win or lose as its not 'their' money.
Regarding leverage it basically means you can trade at lets say $12.50 per tick (pip, point etc) for every $500 in your account (for the e mini S&P 500 that is). This is the maximum and would not be recommended unless you really know what you are doing and even then would be on the risky side. The point is that the leverage is available if needed, you dont need tens of thousands to get started.
The main point is that you will be seeing and trading true market prices, you wont pay a spread so you can in theory scalp for one or two points and still make money.
Do you ever try using weekly pivots to identify the high/low, often works very well.
No, I work off the bars. I find that that is as good as anything else that I tried.
Okay, so I've made my second trade for the day and it was a wining trade of 1point. I executed one bar too late which is same as yesterday. One bar earlier which was the correct entry would mean I would be up 6points. I think psychology was in play there, small amount of doubt and delayed execution. Other than that I don't think the trade could have gone any better.
The feeling of being at the break even point eliminates a lot of emotion and my trade management was on point. I think if I had another loss I would become fearful and very doubtful. My hands are steady and I'm ready for the next trade.
I have now taken into account the spread, as I was basing my stops on the chart which shows the middle price between the buy and sell. This small consideration has allowed me to stay in the market for longer.
The feeling of being at the break even point eliminates a lot of emotion and my trade management was on point. I think if I had another loss I would become fearful and very doubtful. My hands are steady and I'm ready for the next trade.
I have now taken into account the spread, as I was basing my stops on the chart which shows the middle price between the buy and sell. This small consideration has allowed me to stay in the market for longer.
