Weekly points target for Dow and FTSE

[grubs50]

As someone who likes setting weekly trading targets, i am seeking opinion about what can be regarded as the minimum weekly points target that a half decent trader should aspire to make trading the Dow and FTSE...................and if the type of trading i.e day or swing is a factor i would love to have suggested targets for both scenarios...........and finally it would be nice to know the reasons or even formula on which ur suggestions are based.

Thanks

 

[Richbynature]

I don't believe in targets - only a system that is clearly profitable in the long run. I trade Eur/US$ and make about 25 pts per day there (can't compare that to equities as spreads are tighter on fx).

 

[frugi]

I like china white's method:

Take a look at front end volatility. For the S&P (a reasonable enough proxy for the Dow) I believe this is derived from the VIX or VXO. At present it is about 18.5% (annualised) as they are both around 18.5 (not absolutely certain about my interpretation here).

Obtain the DAILY volatility given 252 trading days in the year:

18.5/square root(252) = 1.17%

Dow is 10250. 1.17% is 120 pts a day.
SPX is 1118. 1.17% is 13 pts a day.

This is the daily range one can expect.

If you pocket half of these points daily you are doing very well and a third is not bad. So I guess that means 200-300 Dow pts a week is the target to meet...

 

[andrewmooton]

Anyone know any good strategies to net 200 - 300 dow points per week?

 

[Bigbusiness]

Yes, buy when it is going up and sell when it is going down. Gets at least 300points a week every time

 

[andrewmooton]

was that a joke or serious?

sorry if i'm being a bit slow

 

[donaldduke]

200-300 a week sounds like a lot.
Aim for 500 a month with small drawdowns instead, and then you can trade
at say 20 pounds a point and make £10,000 a month.

 

[andrewmooton]

Donald,

Would you be willing to share or do you know of any strategies that would allow you to get 500 points/month?

I'm spread betting by the way and I only have about £500 - £600 to start with.

Cheers

 

[Bigbusiness]

Andrew,

It was a joke. Have you looked at Chartman's threads? There was a summary of his methods but I can't seem to find the link. Perhaps someone can post it here.

 

[andrewmooton]

Thanks BB i'll try and find them

 

[schoe]

Andrew, Many people on this board have spent several thousand pounds and several years learning to trade and become profitable. 97 % of spreadbetters lose their capital, everyone thinks they can do better that the others its called ego your biggest enemy in the markets. This is not an easy game to play and nobody is going to give away a system that makes 500 pts per month, they would just keep it quiet and trade it themselves.
You wouldn't expect to be able to perform brain surgery without studying for many years, trading is the same.
On the face of things trading sounds easy, it can go up or down 50/50 but the markets arn't like that in reality they whipsaw go sideways and stop you out before reversing to drive you nuts. Thats the dilemma when do you take your profits, when do you cut your losses, its all about judgment and it takes years to learn I for one am still pracitising and am under no illusions as to how tough it is. I've been on about 5 courses, been to nightschool, bought systems and methods and only now am getting close to becoming a winning trader.
I suggest you be very careful with your money as you will lose it without question if you start trading with your knowledge and if you start off by winning that is even worse as a disaster will be around the corner. I have heard of one trader who
Saved for two years to enter the market.
Built up £5000 of trading capital,
Spent £2000 on a course and software,
Started trading 1 day after his course,
HE LOST £6000 IN 26 MINUTES, HE COULD NOT MEET HIS MARGIN CALL,
HE HAS CCJ'S AGAINST HIM AND WAS PAYING THE DEBT FOR YEARS.
THE date was September the 11th 2001
IT CAN HAPPEN AGAIN.

Sorry to be negative but the most important thing to remember is not what you can win but how much you can lose. 2% is the recommended loss on a trade that gives you a tenner ! Spend your money on books and learn gradually if you start trading you have little chance.

 

[TheBramble]

Mark - very wise advice.

Andrew, with the greatest respect, you are heading for a fall.

You've hit so many different threads on t2w asking for someone to give you a winning system.

The first person that comes along and says they are going to hand you a 'guaranteed' system to make money trading the markets and you are going to go for it.

I don't think anyone on t2w can stop that.

Go for it. Get it out of your system.

When you've lost your first tranche of capital and got over the pain and the 'decision' to never trade again - come back, save your money and start listening to what the good folks here are telling you.

 

[andrewmooton]

Thanks for the advice Bramble.

But the thing is, if other ppl can be successful at it and they have a system which gives them that success then I dont see why I cant be successful too.

 

[TheBramble]

It's not the system that makes the money. It's the trader.

Learn to be a trader - then get your system.

I'm really trying to encourage you Andrew, but in a direction I don't think you want to go.

 

[JonnyT]

Andrew,

You could always try Spot On

JonnyT

 

[TheBramble]

A good system JT with nice results last week. Well done.

But, are you going to stand at Andrew's side and make sure he takes the 35 pip loss each and every time - or stop him exiting earlier than 21:00 BST when he thinks 10 pips is enough for one day?

But you're right - the guy's in a rush and he could do far worse.

 

[schoe]

Thanks for the advice Bramble.

But the thing is, if other ppl can be successful at it and they have a system which gives them that success then I dont see why I cant be successful too.

Andrew, Where are these successful people how do you know they are making money? You only have £600 capital I have spent more than that on a days course! I will say it again 2 %of your capital is £10, the spread on CMC is 5 on the Dow that gives you a stop of 5 points. I will say it more strongly this time you need to WAKE UP, you WILL lose your money unless you are very gifted or very lucky, remember 97 % LOSE why do you think you will be different ?

 

[andrewmooton]

Thanks for your advice everyone.

I really appreciate everything you are telling me.

Bramble, how do you reccomend I learn to become a trader?

The reason I may come across as a bit naieve is because my first introducation to SBing was a book that I baught which led me to believe that I could get started with only £100 and compound my profits untill I got up to £2000 and then I could start making about £700 per week.

I realise that most of you are a lot more expreienced than me and I take your advice on board.

Cheers,
Andrew

 

[TheBramble]

Bramble, how do you reccomend I learn to become a trader?

Grubs & Co will (quite rightly) throw us off this thread if we do much more hijacking on this off-topic topic, so best to go to your original thread for any follow-up. But to answer your question...

I think it's already been pretty much summed up. Check out the 'First Steps' forums on these boards and work your way through the last 30-days worth of posts in each forum. Indices, FX, Options and especially the Trading Psychology forum - it's all background - all education.

If there's anything you don't get and you still can't get after doing a search and a bit of digging around - just ask.

Get a demo account from FXCM and follow JT's EUR/USD break-out system.

Get a demo account from one of the SBs (others are best able to recommend which) and any of the freebie chart feeds and just watch the price and volume. Get a feel for it.

If this sounds really boring then perhaps your interests lie elsewhere. If that's so, you're better off knowing that sooner rather than later. Save you a lot of time (and money!).

One thing I would avoid (and this really is just my personal opinion) - don't go on any courses. There are a few which have received good reviews, but on balance, you're the only and the best person to decide how you should trade.

Once you've started trading and have a bit of background and experience - a coach might be a good investment.

Check out the trading books recommended by others.

Trading is not a quick and easy way to make money - unless you write a book about how trading is a quick and easy way to make money.

Looks like Thailand might have to wait for a bit.

 

[andrewmooton]

JT, what exactly is spot on?

BTW, thanks for all your advice on this thread guys.