Hi, I'm new here and looking for advice on a strategy which seems kind of obvious, so I'm looking for the catch. I used to trade Forex so I'm used to fast trades. Since pronounced movements in the Dow Jones index are usually followed by similar movements on ASX200 what is wrong with entering the market long or short to take advantage of a fairly predictable movement either up or down? For example, if the DOW went up by 80 points, perhaps go long on XJO for 40, with a stop loss at -25? And vice versa in a bear market? Where there is no clear direction I would stay out.
Also, what would be the best instrument for this kind of trade - index mini? And can you exit within minutes like on Forex?