Stop loss lesson and D4F

[juanbyte]

DW

The market traded 35 points higher than the buy and 55 points lower than the stop.

There was no spikes that day, it traded higher than the buy for about an hour.

The trader has to be reponsible for the trade, Enzo is correct he should be able to monitor and manage the trades at all times.

Enzo

If these 2 trades were your plan, if you were able to monitor the trades, would you have done anything differently?

 

[emasiello]

Juanbyte,

I would have shorted at 10298 (if it hit it!) as planned but stopped out when it reversed (20pts). And then taken profit once it hit 10400 (poss 10/20pts with trailing stop loss), obviously missing out the pts between 10300ish and 10380.

And then would have shorted again at 10300ish (as originally planned) and taken profit after 10/20/30pts with a trailing stop loss.

That would have been the plan, but its always easier after the event. One thing to bear in mind I trade based on Esginal numbers not D4F.

I havent checked the D4F chart for Thursday but I'm sure it will show a spike at 13.32 (10298) if not, I need to speak to them because according to my statement it shows a pending trade executed at 13.32 at 10298, resulting in the mentioned loss.

Enzo

 

[juanbyte]

Enzo

According to sierra charts at 13:32 the mkt droped to 10295
at 13:44 it was @ 10275

Did you trade on the employment news release at 13:30?

13:30 and 15:00 are very volatile times for trading.

Market moves fast on data releases see
http://biz.yahoo.com/c/e.html

Hope this helps

 

[emasiello]

OK, thanks for the help. I was intending to trade on the back of the news but did not have time.

if this is correct I am mistaken and need to start learning how to read charts. Have enjoyed the thread though, has it has now made want to contribute more to the forums and subsequently learn more from them.

On a side note, the data I receive via esignal is great but the charting tool is not, unless i subscribe to the top package. Should I invest in Sierra or Tahoe etc..?

Enzo

 

[Vaco]

I use D4F CFDs and I have to warn you that if you are going to trade the indices with stops DO NOT LEAVE THE STOPS ON out of normal market hours i.e 14:30-21:00 gmt as the spreads on the bid/ask is phenomonal and I mean it really really sucks.

As for their cfd spreads on stocks, they are very close to actual market normally about 1c on each side of the outside bids, so how do they make their money?? well try placing a trade for more then 300 shares and you may as well make a cup of tea whilst your waiting

 

[Splitlink]

This does not sound like TA, it sounds like pivot points which I personally think are utter nonsence.

Hi Juanbyte,

Pivot points have been selected as a guide for entering and leaving trades by a lot of well known posters. I agree with you, I have tried to work out a good trading system with them but they don't make sense to me. That does not mean to say that they are no good, just that I do not trade with what I do not understand. If others can, then good luck to them.

Split

 

[dc2000]

Emasiello have you looked at trading the mini Dow Direct Market with spiketrading you can bracket orders allowing you to set buy price, stop, and limit for each trade a great idea if you have set targets and can't watch the screen all day.

Allso if you expect the market to move a large amount ie FOMC days binarys can be a good fixed price option

 

[emasiello]

Emasiello have you looked at trading the mini Dow Direct Market with spiketrading you can bracket orders allowing you to set buy price, stop, and limit for each trade a great idea if you have set targets and can't watch the screen all day.

Allso if you expect the market to move a large amount ie FOMC days binarys can be a good fixed price option

Apologies for not responding sooner, have been away for 5 days house hunting in Spain.

Thanks for all the feedback, its been interesting. I havent looked into mini Dow direct but it sounds interesting, I will do a search on the board and see what I find. I will probably contact you via PM if i get stuck (do you mind dc2000?) also re CFDs I do think its the way to go at the mo, what does the 300 shares equate to in terms of GBP per point.

Enzo