Advice on CFD providers

[Wysiwyg]

People use CFD's wrong. A trader should use them to increase exposure to the NUMBER of positions, thereby increasing the odds of striking a winner.

Cheers,


CanOz

I like that idea and will consider using it to "pepper" a turning point target.Say a target low on the dow of 7700 and place 5 long entries at 15 point intervals above and below. 7730, 7715, 7700, 7685 and 7670.With a 30 point stop loss on each.

That is a 60 point zone to get it right though the T.A. work would have to be pretty darn good.

Worst outcome would be all entry points tripped and stopped out for a 150 point loss.Or US$1500.

 

[CanOz]

I like that idea and will consider using it to "pepper" a turning point target.Say a target low on the dow of 7700 and place 5 long entries at 15 point intervals above and below. 7730, 7715, 7700, 7685 and 7670.With a 30 point stop loss on each.

That is a 60 point zone to get it right though the T.A. work would have to be pretty darn good.

Worst outcome would be all entry points tripped and stopped out for a 150 point loss.Or US$1500.

If thats what your account can take then sure, its no different than taking more equity positions, other than having the same instrument in common.

Cheers,


CanOz

 

[skc]

I like that idea and will consider using it to "pepper" a turning point target.Say a target low on the dow of 7700 and place 5 long entries at 15 point intervals above and below. 7730, 7715, 7700, 7685 and 7670.With a 30 point stop loss on each.

That is a 60 point zone to get it right though the T.A. work would have to be pretty darn good.

Worst outcome would be all entry points tripped and stopped out for a 150 point loss.Or US$1500.

Sorry to hijack the thread but just trying to better understand the thinking behind your "pepper" technique.

Your first long @7730 has a stop at 7700, but you also has an open at 7700... aren't you better off just not closing the first long and not opening the third long (at 7700), and you save yourself some brokerage / spread?

You can achieve the same outcome by just having 2 longs to open at 7730 and 7715, and stops at 75 points each. Same total risk, same no. of open positions but 3 less transactions than previous setup.

 

[Wysiwyg]

Sorry to hijack the thread but just trying to better understand the thinking behind your "pepper" technique.

Your first long @7730 has a stop at 7700, but you also has an open at 7700... aren't you better off just not closing the first long and not opening the third long (at 7700), and you save yourself some brokerage / spread?

You can achieve the same outcome by just having 2 longs to open at 7730 and 7715, and stops at 75 points each. Same total risk, same no. of open positions but 3 less transactions than previous setup.

I like the 2 long variation skc.When the low gets put in can happen quickly and it is hard to know when the downward drive will pull up.Buying on the bounce up would be less risky.