>Apocalypto<
20.03.2012
- Joined
- 2 February 2007
- Posts
- 2,233
- Reactions
- 2
CanOz said:Following your thread closely fellas, just got IG markets this week.
Looks like it may be a while before i try and trade anything but shares though, gotta get a feel for this. Please keep posting, its helping a great deal.
Cheers,
Trade_It said:hey man forgot to add that.
trading the indexs on IG are very fast paced make sure you really study then before you trade them sick to the minis at the start $25 a poit really adds up quick!!
Hi TI & Canaussiuck,
Seeing how we are all learning here, just thought I'd run my current IG markets mini 200 $5 position sizing strategy with you for comments. It's working fairly good in these conditions.
Entry criteria not discussed, only position size and stop loss strategy.
First, I determine my maximum position size my funds allow me too (my maximum I allow for trading risk), which is currently 20 contracts.
Next, allocate/divide this to entry levels eg open the first position with 5 contracts, set stop level 5 points away - setting the stop at order entry makes you disciplined so as to not let losing positions get out of hand. Now if entry was correct, open second position of 5 at 5 points away, and adjust the first position stop loss to initial open price (break even).
Continue 5 X 5 & adjusting stops for next 10 points and contracts till max position obtained (20) or exit criteria is met. Each time adjusting stops of previous open positions to 5 points away from current open position, so that if/when the last position is opened the first position is 10 points in the money (ITM), the second is 5 points ITM etc. Then, reset stops every 5 points away from then on, let profits run with tight stops or close on exit criteria.
The most you are exposed to lose is $125, but pyramiding in to gain.
Use at your own risk
UF - your stops are they GSL or standard? I get the feeling your stops are standard, other wise you wouldn't get a 5 point minimum? Have eitheror of you traded gold,oil or other commods yet?
Keep the posts coming please, as i value your experiences. Thanks guys.
Cheers,
Another thing to be mindful of is that gold and oil etc are traded in other currencies so you will end up with a foreign currency account with IG if you do trade these. You will at some stage have to convert back to $AU at the prevailing IG conversion rate if you want $AU back.
What are your thoughts on hedging the position with a currency trade? Or could this add salt to a wound?
Cheers,
What kind of strategies do you use for finding entry/exit points and setting stops when trading CFDs?
I have a plan to do more research on T/A and get a good understanding of a number of tools to use, then find some software package that will help me to use the charts etc... then paper trade for a couple of months.. to try and refine a strategy, and then start off with a small account of say a couple grand with IG Markets.... and see how I go.
If any of you guys have some suggestions I would love to hear them.
Thanks for taking the time to read my post....
codeowl.
Not sure if is worth while as
a) probably take up too much margin capital to hedge effectivly &
b) the small variation in exchange rate (over the course of the trade) won't make a big difference to the profit/loss anyway, assuming CFD trades are short term eg max of 1 week maybe at most?.
c) just another thing to keep an eye on/take up time. I try to keep the number of open positions to a manageable number.
UF
Trade_It:
I saw your post where you said:
"I have always been very interested in trading the xjo. CUZ IT HAS NO GAPS!!!"
How do you mean it has no Gaps. is this the case with all indexes?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?