Tips for trading Dow CFD

[abs2011]

Hi guys,

I usually trade on the FTSE 100 CFDs, planning to trade on the Dow (due to work commitments). I have not been as successful trading the American index, as with FTSE. The volatility of Dow always catches me out. I can overcome that problem by placing bigger stop losses, but then I'm also risking more capital per trade. So any tips from anyone who had similar issues would be most welcome. I will try to reply to as many posts as possible.

 

[piparb]

Hi guys,

I usually trade on the FTSE 100 CFDs, planning to trade on the Dow (due to work commitments). I have not been as successful trading the American index, as with FTSE. The volatility of Dow always catches me out. I can overcome that problem by placing bigger stop losses, but then I'm also risking more capital per trade. So any tips from anyone who had similar issues would be most welcome. I will try to reply to as many posts as possible.

The reason why you stopped out is the volatility , so you must trade when the Dow is
ranging after and before he make long moves .
I only trade at night or after 18:00 , so the volatility is low and the moves are slow .

:cheesy: slow moves better than fast

 

[abs2011]

The reason why you stopped out is the volatility , so you must trade when the Dow is
ranging after and before he make long moves .
I only trade at night or after 18:00 , so the volatility is low and the moves are slow .

:cheesy: slow moves better than fast

Hi piparb,

Thanks, I will be trading after 18:00 from next week due to work commitments. This might prove helpful as you said.

 

[juniorh]

Hi piparb,

Thanks, I will be trading after 18:00 from next week due to work commitments. This might prove helpful as you said.

Is that 18:00 GMT or 18:00 EST US time after regular hours. If it's US time are you affected by the wider spread that occurs during over night trading?

 

[abs2011]

Is that 18:00 GMT or 18:00 EST US time after regular hours. If it's US time are you affected by the wider spread that occurs during over night trading?

Its going to be 18:00 GMT. I'm from Cardiff, Wales.

 

[juniorh]

Ok so that be within US lunchtime (5pm to 7:15pm GMT) which is when volume on the US indices dips and then picks up again after 7:15pm. 7:30pm has a higher chance of reversal opportunities. I have time chart breakdown that I got from Online Trading Academy (OTA) and iTradePod and L2ST.co.uk have produced similar time lines that include descriptions of what happens at various times throughout RTH and ETH and what affects it has on volatility . I can dig it out and post it if anyone is interested.

 

[looker1491]

Ok so that be within US lunchtime (5pm to 7:15pm GMT) which is when volume on the US indices dips and then picks up again after 7:15pm. 7:30pm has a higher chance of reversal opportunities. I have time chart breakdown that I got from Online Trading Academy (OTA) and iTradePod and L2ST.co.uk have produced similar time lines that include descriptions of what happens at various times throughout RTH and ETH and what affects it has on volatility . I can dig it out and post it if anyone is interested.[/QUOTE

Hi, I am interested to learn more.
It will be good if you can provide the link here. Thanks