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Strategy for trading the ASX 200 daily

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Re: Strategy for trading the ASX200 daily

nunthewiser said:
dunno about your pitchforks but ive entered a BHP short as of today


happy to drop it like a hot spud if wrong also
Click to expand...


dont actually trade BHP, so dont know what its doing.

but APF rules say:
consider short at pink circle (which i think is around todays prices),
at which time price may find resistance and retreat to lower orange line

good luck!
 

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Re: Strategy for trading the ASX200 daily

clayton4115 said:
yes TH, now i have stop losses in place!
Click to expand...

I would start with position sizing. That was obviously completely out the window.

Just no way in hell you could be trading daily and lose 2 months of gains on a 2% move.

Just no way that should happen.
 
Re: Strategy for trading the ASX200 daily

Trembling Hand said:
I would start with position sizing. That was obviously completely out the window.

Just no way in hell you could be trading daily and lose 2 months of gains on a 2% move.

Just no way that should happen.
Click to expand...

Unless his 2 months profit was $12
 
Re: Strategy for trading the ASX200 daily

Trembling Hand said:
I would start with position sizing. That was obviously completely out the window.

Just no way in hell you could be trading daily and lose 2 months of gains on a 2% move.

Just no way that should happen.
Click to expand...

This is an exert from the highly authoritative finance publication called CMC Markets Trade Review (Feb 2009).

TR: How much or what was your biggest win?
RM: My biggest win was in February 2008 the market fell about 3% overnight and I was short in the Aussie200 and the US30, I woke up to around 600% increase on my account.
Click to expand...

To gain 600% in the account with a 3% move means you will need to use the full leverage of 200 times!! It also means that a 0.5% move against him would have wiped him out.

Key lesson: Go hard or go home.

Note: RM is some CFD trader interviewed by CMC.
 
Re: Strategy for trading the ASX200 daily

Rreading this thread brings back memories of when i thought i knew it all... i guess i still dont know it all... and probably have heaps more to learn....

keep at it... read, ask, try, over and over again until u hone your skills...

if u're asking about strategies... that's 2nd on my list of things...

Like the others above have mentioned... capital management is far more important than anything else... learn position sizing, Risk/Rewards, etc... ASF is full of information on those topics... but more importantly... learn to take a loss when things are too hot in the kitchen... that way u will live with enough capital to trade your way back... don't blow it all!

If you must ask strategies... I like MA's... that doesn't mean that it will suit you! My style of trading has changed much over the years... when i was a beginner.... i was using all sorts of things...

Fib's, PSARS, RSI, MACD, STOCHS... you name it... i tried it... what u use, doesn't matter... as long as you've back tested whatever strategy (and also forward tested it)... and the results looks positive, then as long as you have good capital management.. you're going to be profitable... (with good discipline too!)

About the ASX200 strategy... the most favourite of mine is the fade
if DOW goes up,... ASX200 will go down
if DOW goes down... ASX200 will go up...

i still do not understand why that happens...

Timing the entry is the fun part... and more importantly... when to exit - whether it's a loss or a profit Hopefully the later...
 
Re: Strategy for trading the ASX200 daily

can anyone tell me, why there are different chart times? like 1 min 5 min 10 min etc?

why is this so and what time frame do you prefer.
 
Re: Strategy for trading the ASX200 daily

clayton4115 said:
can anyone tell me, why there are different chart times? like 1 min 5 min 10 min etc?

why is this so and what time frame do you prefer.
Click to expand...


https://www.aussiestockforums.com/forums/showthread.php?t=14640

You already have a thread on this.

Like i said.. It depends on your trading style. If you hold for an average of 1 year, a 1 minute chart isn't going to be much use...

But if you trade intraday, a 1 week chart isn't going to be much use!

Thanks
Brad
 
Re: Strategy for trading the ASX200 daily


Hi, my = At the bottom of the markets we see whipsawing and bottom bouncing so a trailing stop and/or profit target would be a healthy choice.This could be part of your trading plan before opening a trade and if it helps ... write it down and follow it to the letter.
 
Re: Strategy for trading the ASX200 daily

yes thanks but im with city index and they dont have trailing stops

anyways do ppl look at the small picture and then look at the big picture when trading?

for example. i like to trade daily and look at the one minute chart to see any trends in which i can jump on ride it out and then exit

but if the trade goes against me, i think to myself, well why close the position at a loss when I see further falls in the market over the next 3 months or so and that the market will fall further to my open price, rather than crystalise a loss why not wait it out till the market does go further down and perhaps take a small profit?

after all we are in a bear market and i feel the market will penetrate below 3000 sooner rather than later

my current daily chart has all bearish signals!

what are your thoughts?
 
Re: Strategy for trading the ASX200 daily

clayton4115 said:
what are your thoughts?
Click to expand...

Sounds like you need to figure out what time frame you actually want to trade.

And learn money management. Although you probably wont until you blow up at least one account, seems to be standard for everyone (myself included)
 
Re: Strategy for trading the ASX200 daily

clayton4115 said:
anyways do ppl look at the small picture and then look at the big picture when trading?

for example. i like to trade daily
Click to expand...
Contradiction of trading daily is holding onto a loss which you hope will turn around.
after all we are in a bear market and i feel the market will penetrate below 3000 sooner rather than later
Click to expand...
So you have a bearish bias day trading yet the ASX200 is not bearish everyday.

my current daily chart has all bearish signals!
Click to expand...
Can anyone tell you how to trade?You can only trade on what you believe and with the experience you have, in my opinion.
 
Re: Strategy for trading the ASX200 daily

clayton4115 said:
rather than crystalise a loss why not wait it out till the market does go further down and perhaps take a small profit?
Click to expand...

You know, i bet the people in the bullish market that ended in '08 had this exact type of thinking.

Why make a loss when up until now the market has been bullish? I can hear them saying that in my head right now. Sooner or later your going to realise that your losing position is just getting more rotten and you are going to have to cop that loss.

I'd rather take my loss sooner than later

If i were you i'd read up on some basic risk management.

Nick Radges book titled Adaptive analysis of australian stocks is a great one for risk management, i'd suggest you pick up a copy and read the first 50 pages. Once you have done that read them again

Thanks
Brad
 
Re: Strategy for trading the ASX200 daily

thanks, im sure you all are getting fed up of my ignorance i have decided to put stop losses if my trade hits a $200 loss, im just got it in my excel spreadsheet now this equates to 4% of my capital.

this all comes through experience i suppose.
 
Re: Strategy for trading the ASX200 daily

clayton4115 said:
thanks, im sure you all are getting fed up of my ignorance i have decided to put stop losses if my trade hits a $200 loss, im just got it in my excel spreadsheet now this equates to 4% of my capital.

this all comes through experience i suppose.
Click to expand...

Firstly, i'd suggest not risking more than 2% of capital as a maximum

Secondly i'd suggest that you define your stop losses using a technical point on the graph rather than a point as a percentage of your capital.

That way you-

Define your dollar risk (in your case 4% of capital.. say you have $100000 capital that is a $4000 risk)

Define your entry point (say $10)

Define your stop loss (say $9.50)

THEN decide how many shares to buy, in this case it would be $4000 / 0.50 (50 cents being the risk per share)

Your position size would be 8000 shares

Thanks
Brad
 
Re: Strategy for trading the ASX200 daily

clayton4115 said:
this all comes through experience i suppose.
Click to expand...

Actually you should stop. simple as that.

No MM. in trades without even knowing what time frame you are trading. no idea of expected moves. No edge. No set-ups. No idea of where you are going.

Get a map before you set out again.
 
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