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Day Trading Lynas

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Gringotts Bank said:
S: 1.14
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skyQuake said:
LYC's range can vary quite a bit. No point taking a 1c move when theres a big move going on in the SPI re the IMF bailout
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Therein lies the problem day-trading a stock because intra-day moves become reliant on the overall market to an extent but can also be left behind on a good move by the overall market, making it unpredictable and therefore harder to trade. Also very expensive to trade.


Don't mess around, open an account with IB or similar and learn to trade the SPI or other index if you want to trade indexes, CFD's for index trading are a waste of time imo, expensive and unreliable to a certain extent.
 
Gringotts Bank said:
I'd rather trade an Aus index cfd, but the commissions are just enormous. I think it was something like $187 for $50000
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That doesn't make sense.

Someone like IG quotes with 1pt spread so to buy at bid and sell at offer straight away will cost you one point round trip.

Index at 4000 points so $12.5/pt is all you need for a $50k position size... so effective commission ~$12.5.

Unless you are using $50k as 2% margin and have a position size of $2.5m...
 

lol yes I added a few too many contracts! I was minus 5k in a few seconds.
How can I get a quick calculation of how many contracts = a 50k position size, no matter what the index value?

One contract (Aussie 200) just bought at the offer cost me $25, is that right?
 

I hope that's just demo!

There is no commission in CFD indices. They quote an all-in spread, which is 1pt for IG, and spread is different between different providers. Each provder also has different tick value as the contract size. Standard contract might be $25/tick. But you can find people who do $0.1/tick.

The face value of the contract doesn't actually matter that much, what matters is obviously the tick size. But if you want to trade $50k face value (for whatever reason) you can simply calculate that to be $50k/index value.

So that's $12.5/tick with the ASX200 at 4000. 12.5 contracts if they are $1/tick. 125 contracts if they are $0.1/tick...

Before you trade for real though I trust you will actually read up on the contract specifications related to CFD indices. They are not futures.
 
Will try both LYC and Aus200cfd today.

LYC B: 1.20 was the open - edited
Aus200 2 contracts at 4077.9
 
sorry I'm doing 10 things at once. Buggering up this thread.
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GG
Full marks for putting the idea out there.
But

Its a gut feel theory with many flaws already mentioned by those here.
Even the back testing has inherent flaws.

Seriously you need to look at how you do this.
 
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