Anyone successfully trading ASX intraday ranges with CFDs?

[>Apocalypto<]

Hi TH,

After reading your blog I have a question.

Wouldn't there have to be a gap of one point between the buy/sell of a future ?

Don't see how they could be the same price, which means the difference between futures and CFD still exists but would be less than your example.

I don't trade these things but I am interested in trading the SPI200, that is why I am reading

If I am wrong could you please explain why /how

thanks

Hey Macca,

there is a 1 point spread on the spi to my knowledge

 

[Trembling Hand]

Hi TH,

After reading your blog I have a question.

Wouldn't there have to be a gap of one point between the buy/sell of a future ?

Don't see how they could be the same price, which means the difference between futures and CFD still exists but would be less than your example.

I don't trade these things but I am interested in trading the SPI200, that is why I am reading

If I am wrong could you please explain why /how

thanks

Hi Macca
Yes you are right there is a 1 point spread on the SPI and its can even jump out to 3 or 4 points when it gets real wild. But 98% of the time its 1 point. The thing that makes the difference is that because you can join the BID or ASK and its so active (about 25,000 contracts per day) you can mostly get your order filled playing the spread rather that with CFDs having to always buy/sell the other side of the spread. I will post some more about this. Maybe even set up a cam or video camera to show the market depth screen in real time and put that on my blog. Of course if your time frame is larger than intraday you don't have to give a toss about the spread. But on a smaller time frame that is where the skill comes into it. Maybe even more than any Chart reading TA stuff.

Stay tuned

 

[Edwood]

intra-day range?? wots that? last 2 hours have been trading within a 6pt range

 

[professor_frink]

intra-day range?? wots that? last 2 hours have been trading within a 6pt range

Been fun hasn't it

With the HK markets shut and the golf course waterlogged, I thought I'd see if I could play on the spi

Had a stop limit order waiting to go off since about 11:30...... and it's just been hit. Woohoo

 

[Trembling Hand]

Hard day to get an easy read, lots of volume because of the roll over of new contact. Lots of funny buggers with big orders going off everywhere.

 

[Trembling Hand]

Been fun hasn't it

With the HK markets shut and the golf course waterlogged, I thought I'd see if I could play on the spi

Had a stop limit order waiting to go off since about 11:30...... and it's just been hit. Woohoo

You enjoying this run?

 

[>Apocalypto<]

I opened a long over the IGXJO last Thursday so they have all been good runs thus far.

market really came back today looking like a confident finish.

 

[professor_frink]

You enjoying this run?

Yep
Had a target for 64, so only have 1 on now- next target of 81. Think that might be a bit ambitious, but I'll see if I can hold out for it.

Noticed on your blog, you had your eye out for the break- did you get set?

 

[Joules MM1]

I opened a long over the IGXJO last Thursday so they have all been good runs thus far.

market really came back today looking like a confident finish.

nice stuff, TI

follow the power, squeaz the shorts.........

 

[Trembling Hand]

Yeah i was on it but flipped it out a long time ago.
Like 15 points off the days highs................ so far

:bonk:

 

[professor_frink]

Yeah i was on it but flipped it out a long time ago.
Like 15 points off the days highs................ so far

:bonk:

A profitable trade is a profitable trade

81 has been hit I'm out.

 

[Joules MM1]

the index is providing swings both sides in a clear manner todate, with no overalpping x-wave type stuff.........this particular fute mimic (cfd) is a good alternative benchmark to use in conjunction with the levels in the cash in terms of extreme ratios and supports in post-cash plays.........if targets aent quite met in the cash the cfd may provide the signal that an exhaustion and reversal at that degree of trend is already met in terms of liquidity flows (both ways)........

J

 

[Trembling Hand]

this particular fute mimic (cfd) is a good alternative benchmark to use in conjunction with the levels in the cash in terms of extreme ratios and supports in post-cash plays.........if targets aent quite met in the cash the cfd may provide the signal that an exhaustion and reversal at that degree of trend is already met in terms of liquidity flows (both ways)........

J

Are you saying a CMC CFD contract that is based on the SPI TICK for TICK but reset set at an arbitrary level by CMC should be an indication of trade set ups???? come on this "contract" is Rubbish. Use the XJO or SPI not something set by a Market Maker. It Has been 30 points or more below the SPI and XJO as recent as two weeks ago and has been like that for a long time now. Then this week it has been "repriced" since the falls. Even if you have to use a CFD contract to trade watch what the smart money use not this.

 

[SevenFX]

I opened a long over the IGXJO last Thursday so they have all been good runs thus far..

How much of a stop do you guys use, as I'm with IGmarkets (web) trading the SPI (Forward200-SEP07) and feel whether I'm generous or not, I get stopped out nearly everytime, no matter how good my channels n s/r lines are...????

I'm using 8-12 pts spread, and guessing if I'm wrong with picking my entry, I rather know sooner, than later. And hate to think about more contracts atm.

Running out of fingers, as most of them are burn't since intraday trading with IGmarkets.

But on a smaller time frame that is where the skill comes into it. Maybe even more than any Chart reading TA stuff.

Hmmm, start to wonder that, as whereever my stops are, it comes down, closes me out, and the of course moves to higher highs.

Starting to feel like IGmarkets have got me on some sorta simulator, and shifting all my wealth from my account to theirs....

Thanks
SevenFX

 

[Gundini]

Can anyone suggest any good stocks for this style of trading? Admittedly the ranges have been narrowing these last few days as the market has been making lower highs.

Yes, there are quite a few good intraday movers, but you have to have your fingers on the pulse...

LEI can move $1 to $2 during the day.

MBL has $1 to $4 range.

PDN can have runs of around 30 cent movement.

RIO is darn right scary, and sometimes lack depth, but big mover.

BHP is also fairly solid, but you have to generally catch movement at the open, around 50 cents.

There are many others but these are my favourites at the moment.

It is not an easy thing to do and you need to be slick on the button. Can be exciting when they go your way, and devestating if they don't. And then there are market notices. I have been caught out a couple of times with these. When ZFX came out last year with an earlier than planed mine wall suring up, I ducked into the loo. On my return, the share had lost about $1.70. I went into a panic and sold, and then the share went back up, but it was the most expensive dump I ever had at $10 a cent...

 

[Captain_Chaza]

I believe the correct answer is

"NOBODY!" ????

By definition Intra-day Trading is the meat/body in the daily candlestick

With regard to the "Heavywieghts" and CFD's the major moves are made overnight in the form of Gaps

Big Fat candles are very rare!

With regard to the Lightwieghts you also take your chances?

Salute and Gods' speed

 

[CanOz]

How much of a stop do you guys use, as I'm with IGmarkets (web) trading the SPI (Forward200-SEP07) and feel whether I'm generous or not, I get stopped out nearly everytime, no matter how good my channels n s/r lines are...????

I'm using 8-12 pts spread, and guessing if I'm wrong with picking my entry, I rather know sooner, than later. And hate to think about more contracts atm.

Running out of fingers, as most of them are burn't since intraday trading with IGmarkets.




Hmmm, start to wonder that, as whereever my stops are, it comes down, closes me out, and the of course moves to higher highs.

Starting to feel like IGmarkets have got me on some sorta simulator, and shifting all my wealth from my account to theirs....

Thanks
SevenFX

Funny this SevenFX, i felt exactly the same when i first got my IG account. So for the last 3 months i've just watched the indexs and concentrated on low risk types of entries with highish probabilities. Here are some more things of interest that i've noticed:

1.) never leave a stop unattended (i.e. overnight), and even better to leave it wide a last resort and mentally set your stop level and stick to it.

2.)Get in and then get out as soon as the trade goes against you. Have a target level and get out at that level or move the mental stop up (or down, obviously).

3.) always watch the other indexs that are active at the time, RE: Profs advice on the Nikkei and the HS.

4.) trade minis, 1 contract at a time and set small goals first. Better to hit lots of singles than to swing for the fences. Build up your confidence.

This is still a work in progress for me, and quite frankly if you don't have the time to follow the markets closely every day it doesn't pay. I don't trade large numbers of CFD contracts, only 1 or two minis. This is just an interest at this stage and i've set aside some funds to use as a learning expense.

Trade It was trading CFD indexs for a while.

Cheers,

 

[CFD]

~~
Hmmm, start to wonder that, as whereever my stops are, it comes down, closes me out, and the of course moves to higher highs.

Starting to feel like IGmarkets have got me on some sorta simulator, and shifting all my wealth from my account to theirs....

Thanks
SevenFX

I know the feeling, work out what to do over night and most of the action is over before I can get on! When I say ok I've missed the move let it go, it continues. When I jump on, it stops or moves very little. This leaves me with a small loss that could have been a small profit, or nothing because I let it go or a loss because I jumped on too late.

 

[Trembling Hand]

I know the feeling, work out what to do over night and most of the action is over before I can get on! When I say ok I've missed the move let it go, it continues. When I jump on, it stops or moves very little. This leaves me with a small loss that could have been a small profit, or nothing because I let it go or a loss because I jumped on too late.

If you are trying to trade intraday. Forget about the opening gap. It has no relation to the trend for the rest of the day. If you trade intraday look for setups that reoccur no matter what the opening gap is. This is a trading edge nothing else matters. If you are getting frustrated its because you are trading with out an edge. With Intraday trading the trend is not your friend.

I have made 19 trades so far this morning. Only 5 have been short. Also this is hard to do this stuff with CFds because of the spread.

 

[CFD]

Intraday, it's just these big overnight moves are not the opportunity I thought they should be. On a swing trade type basis they seem to come counter trend. (Someone should blow pre and post market auctions up!)

I thought a 1c spread was ok, but with any volatility it blows out to 2 sometimes 3c which is a bit rich, although it seems to settle back to 1c ok.

I guess you may be doing well with some long positions later this morning, I have no knowledge of picking bounces during the day. Thanks for the reply.