Australian (ASX) Stock Market Forum

The transition to Futures trading

My notes from Friday night's session.
Why I looked for a short.
How I planned to trade it.
How I did trade it.

Chart 1 - daily
Chart 2 - 2 weeks hourly
Chart 3 - 3 min intraday

2014-04-13 - short - overnight - daily background chart.png

2014-04-13 - short - overnight 2 week background chart.png

2014-04-13 - short - overnight.png
 
Pav, IBs TWS now supports Multicharts, have you tried it yet?
 
I haven't heard of it before!
What is it?
Would love to try it out!

When you open TWS you will see 2 tabs at the bottom - one named TWS classic and the other Mosaic. Click the Mosaic tab, and then click the file tab at the top left. Highlight the new window option and down the list you should see the Multicharts option. Click on that and it will download Multicharts for you. It's just another charting software - nothing special (for me at least)
 
Is the volume on that daily/27wks chart correct? Rapidly increasing since Mar17, very high since Mar 24?
I've heard IB volume is artificially generated, but is Dec 16 through Mar 3 missing or really that much less?

(Do I keep asking too many questions!??? ;) )
 
Is the volume on that daily/27wks chart correct? Rapidly increasing since Mar17, very high since Mar 24?
I've heard IB volume is artificially generated, but is Dec 16 through Mar 3 missing or really that much less?

(Do I keep asking too many questions!??? ;) )

That was probably when the new contract kicked in - the previous volume prior to that date was still trading the March contract before rollover.
 
Ok sent mate.

Do you generally have Skype up when you are trading?


Others who are keen please send Canoz your email.



Looking forward to the week ahead.
Still favouring shorts at this stage.
 
Ok sent mate.

Do you generally have Skype up when you are trading?


Others who are keen please send Canoz your email.



Looking forward to the week ahead.
Still favouring shorts at this stage.

Skype's on 24/7 mostly....I do shut her down once in a while overnight...
 
The weekend was a good break. Gave me a chance to catch up on some ironing............

Matt ironing money.jpg



But seriously. I love the advice of people like Michael, Canoz, payday etc.
Psychology is key.
Completely new week.
Last week is gone.
It's all about executing processes well.
 
The Skype group can be formed once i add all the participants to my Skype address book. Not sure but i think the group can communicate even when I'm not online, after we get the group formed.

I won't be on the group for long after next week, but will drop in from time to time. We're in the process of buying some property and we'll be traveling to Australia for three weeks as of next week. Then after that I'll be going back into the corporate world for a few years. I'll be wrapping up my futures trading and I'll go back to swing trading Nick's power setups as its less time consuming.

However, I'm very happy to pass on all of my knowledge and trading style that I've developed from 3 years of screen time.... to anyone that interested that has not formed their own profitable trading style...this may give those without much of an idea, someplace to start (which i wish i had when i started). Of course, you have to make your trading your own, so its just going to give you ideas...
 
The Australian market is heading downwards today after a couple of dead cat bounces.

Currently have 2 parcels short with a locked in trailing stop.

Seems to have plateaued for the moment, but I'm not convinced. I've discovered the IG Markets "Client Sentiment" chart which tells me that other people are less short than they were a week ago (back when the market peaked) and are currently buying the Australia 200 (aka bottom picking). This strongly suggests to me that there will be more downside to this move. Still an experimental contrarian indicator and still one I'm just watching, but interesting nonetheless.
 

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Good one Michael. You seem to be getting some strong results.

I know we can all speculate but do you think things could come off fairly severely to the short side? I'm thinking that it will at some point. Maybe not but not sure.
To me it just looks like things will smash lower at some point. A lot of weakness towards the top!
 
Good one Michael. You seem to be getting some strong results.
Just a few good days following on from a week or two of not overly productive grinding. The way the market is moving currently just happens to suit the way I trade. It'll pass soon enough. No special skill on my part.

FWIW my current short trade now has 3 x pyramided positions with profits locked in with a trailing stop + a fourth just opened.

I know we can all speculate but do you think things could come off fairly severely to the short side?
I have no idea. Right at the moment, I'm aggressively shorting. I have no long orders in the market at this time and am happy to wait for a while until things settle down before putting a small fishing long order in to see what happens.

This is not skill. This is just me "selling if it goes down" as I do.

If I was to speculate:

1. The market is still range trading, but heading towards the bottom of the range again.
2. The top and bottom of the range have been tested multiple times already, so whichever way it goes will probably be quite dramatic.
3. There's not much fear around given the 3% we've dropped quite quickly.

My head thus suggests there is more downside to come. However, price action solely will determine how I trade.
 
Thinking mostly a rotational day, but if the DAX doesn't find any buyers if it tests 9200 then that could change...

I don't we've quite got enough liquidation and new shorts to get an explosive short covering rally just yet...:2twocents
 
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