Trading ideas anyone? Something a bit creative

[jack TR]

This is my first post but view the forums regularly. I've spent a lot of time getting to grips with the fundamentals and technicals. I trade mainly equities and bonds but currently on the look out for new products to trade or even spreads to get involved in.

Spreads like gold/silver come to mind but was hoping others may have better ideas???

 

[Rhody Trader]

My advice would be to stay focused rather narrowly as you start. Once you've developed a solid trading methodology you may be able to branch out, but for the time being picking one main market to follow is likely your best course. It will keep you from getting too scattered and falling behind the learning curve as a result.

 

[TradeCamp]

Jack, curious as to why you're on the look out for more exotic markets to trade, is it that the markets you're trading haven't been profitable or are you just bored? Trading out of boredom is something to be avoided as highlighted in this article

Remember- Infrequent traders are frequently the most successful.

 

[Claudia123]

'Remember- Infrequent traders are frequently the most successful.'

Very good comment from TradeCamp - this is something I have learnt or am still learning. Overtrading or trading just to be in the market can be costly.

 

[tomorton]

Yes jack - stay with one high-volume market that has clear charts until you really understand its behaviour. There are plenty of people who only trade the S&P their whole career. If you can short that one market as well as buying, you might only need that one market, but if you can only be long or in cash, that would be a good reason for a second market, so that if your primary is ranging or dropping, you can still go long on the other - IF - the two markets are uncorrelated.

 

[jack TR]

i take on all the points and advice. To be more specific, I trade mostly the Eurostoxx, FTSE, Dax, Mini S&P equity futures but also the Bund, Bobl and Schatz futures. I had found that during June it was tough to identify a high conviction market due to the many correlations between these products. I can trade from both the buy and sell side but try and stay within my overall directional bias.

I specifically take on the point about trading infrequently but that leaves plenty of time for product development which I am keen to develop. Personally think there is huge opportunity out there and since I am still relatively new at this, I was hoping someone would be able to shed some light on what they have been trading and how they made money in June?

 

[Stewenson133]

an idea? try enter and exit random (dices style)

some profs say market are random?

use random.

than focus on position management.

just an idea.

 

[Claudia123]

an idea? try enter and exit random (dices style)

some profs say market are random?

use random.

than focus on position management.

just an idea.

Trade random and laws of averages says 50/50 - take out your broker fees you lose. Play roulette on the red or black - laws of average says 50/50 but oops up turns 0. To get ahead in any trading/gambling you need an edge.

 

[TradeCamp]

I was hoping someone would be able to shed some light on what they have been trading and how they made money in June?

Jack, the markets were pretty flat in June, again going back to the issue of trading frequency, there's a great quote that goes:

“No man can always have adequate reasons for buying or selling stocks daily”

Just because the markets are there you don't have to trade them all the time. I come from within the industry and I can assure you that a majority of people lose money from 'over-trading' (covering the spread each time remember!). We need to focus on waiting for an opportunity and the right trades not trading frequency (the selloff that happened after the NON FARM results is an example of a good opportunity that a lot of people missed, even just catching a fraction of the movement would have been profitable).

Again, all the best in your trading adventures!

-------------
Tradecamp.co.uk - No 'bs' trading education

 

[Stewenson133]

Trade random and laws of averages says 50/50 - take out your broker fees you lose. Play roulette on the red or black - laws of average says 50/50 but oops up turns 0. To get ahead in any trading/gambling you need an edge.

yes of course
spread+commission+tech problems (Murphy law)
mine just a ph. provocation

 

[Calinor]

some profs say market are random?

Of course they are random, if they weren't they would be deterministic, and we would know tomorrow's exact value today. Being random doesn't mean you can't make profitable trades. I suspect what you meant to say is that the probability of going up is the same as the probability of going down. This is not always true and I wonder how many of the professors who say so, actually trade?

I also agree with the above post that risk management alone won't be able to make you money alone. You will need some sort of edge too.

 

[Stewenson133]

edge or read my signature