Transitioning to markets available in Australia's time zone

[skc]

Re: A transition to ASX Intraday Equity trading

Does anyone use interactive brokers to execute trades intra-day on ASX stocks? If so, which method is quickest? You can actually use book trade, which is easiest for me because i'm used to using it, any other fast methods?

- My suggestion is to ditch IB and use WebIress or something like Pulse (by open markets). They have the market depth function which you can click your orders in. IB can be useful for technical chart based trading.. you can then set bracket orders the night before and let it trigger intraday. But I don't think it's that suitable for intraday, point-and-click type trading.

- If you are confident with your risk management you should look to use a DMA CFD provider who would let you trade any stock on the ASX. You want this for 3 reasons: 1) because you want to trade short easily and cheaply; 2) some CFD providers only let you trade a selected list of shares - so if some news come up on some obscure name, you can't take that opportunity; and 3) you want to be able to use leverage at the right opportunity.

- To build your daily watchlist is simple...
1/ names with big moves in the last 2 sessions
2/ names with news in the last 2 sessions (might overlap 1/) and during the day
3/ names at key levels through your chart scans
4/ names in sectors that are moving (iron ores, oil, gold etc)
5/ names which peers have news - when ANZ announced more bad debt provision, the smart traders are shorting every other bank BEFORE they move.

I'd be surprise if you don't find 50-60 names using the above. You can then refine the list to suit your personal style and perferences.

- The biggest difference with stocks vs futures is that, with futures you are trading a single instrument, while with stocks you are faced with 2000+ names. Each name / sector have different characteristics, seasonality, players, liquidity, baked in expectations etc etc. The more you know about certain names, the better decision you can make in as short a time as possible. I have always described day trading as hunting... the more you know about the habits of an animal, the more you know where and when to look for the kill.

- The news you need access to is...
1/ ASX announcements
2/ Global indices, FX and key commodity prices
3/ Fin review
4/ Broker research (if available)
5/ Hot Cu forum (if you trade the penny end)

- Try to reduce your trading costs. With >$50k, a CFD provider you should be able to trade @ 8bps with no minimum ticket size (that's very important). If you start to do a few $m per month, you can negotiate it lower. Anything higher than that you'd need much higher hit rate to make things work.

- Allow at least a year before you find your routine and niche.

- PM me if you want to know more about Propex.

 

[Gringotts Bank]

Re: A transition to ASX Intraday Equity trading

GB, whats the best way to get this application onto more screens? Is there an undock sort of feature or just spread it out, drawing it over the other screens?

I don't know that, but it is multi-screen friendly.

If you decide to trade big caps, one of those brokers that charges once for mutiple orders on the same day/same stock would be worth looking at.

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

SKC, thanks for the advice. Lots to take in there.


GB, I figured out out to expand the platform to my other screens. Iguana2 can break out into 4 screens. That gives me lots left for other bits and pieces.

Yeah, I like the liquidity on the big stocks, but there's more algo activity it seems. Lots of stuffing and pulling....

 

[minwa]

Re: A transition to ASX Intraday Equity trading

Watching with interest..but just curious are you not trading the euro indices for now ? Curious because you seem to be some seeing success there recently. I assume the time slot is not suitable because evening should be for family time ?

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

Watching with interest..but just curious are you not trading the euro indices for now ? Curious because you seem to be some seeing success there recently. I assume the time slot is not suitable because evening should be for family time ?

Yeah Minwa, we just moved to Brisbane 7 weeks ago. I can go back to the eurex products if I have to, but it's not ideal. I'm really a morning person.

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

Yesterday i did my first "in play" list. I had too many stocks on it, 20 or so. Today i'll use a shorter list and then watch what the guys are watching in the chat room that i've joined. Pretty good crew in there, Bryce Edwards and Alan McGrath. I think i can learn a bit from watching my own stocks as well as watching what other are calling out...I have to record this morning because its also swimming lesson day for my little fella and my wife is not comfortable driving here yet.

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

Today i spent the morning on Futures again. I got my IB data working on the HKFE products with the auction vista working. It was a nice sell off to, some key levels were taken out easily. Bit of a risk off day so far, with China leading the way down. I've got another few weeks on my equity platform trials so i'll continue to watch those intra-day around their open, then the HKFE until 4 pm.

 

[aramz]

Re: A transition to ASX Intraday Equity trading

All the best, but you're going to have to work your butt off finding an edge in the ASX equity intra-day arena.

You've got Bella's books, pour over them and create a process to find a few "stocks in play" each day. As you know US stocks are much more liquid than ASX. You must trade with very high volume stocks or be prepared to be stranded.

ASX stocks will move with the index or move with their own stock specific news. IMO it's important to have an idea what's likely to move the stocks you're interested in.

You'll probably end up with a small list (10) of favourites that move with the index and a few small caps that are "hot" at the time.

You'll have to create and apply a new skill-set that is completely different to what you've been doing. I don't envy your task.

I know you know enough now to do it (believe it). However you'll be challenged to ditch a few of your current beliefs. Let the market guide you rather than force your beliefs onto the market. Your emphasis must be on what works, rather than what the textbooks say should work.

Remember the trading basics, AW, AL and W%. You've got to create a winning set of numbers consistently.

Enjoy the work, enjoy the journey.

Hey Peter2,

You mentioned "bella's books". Just wondering what bella's books were?

Cheers

Luke

 

[aramz]

Re: A transition to ASX Intraday Equity trading

Yesterday i did my first "in play" list. I had too many stocks on it, 20 or so. Today i'll use a shorter list and then watch what the guys are watching in the chat room that i've joined. Pretty good crew in there, Bryce Edwards and Alan McGrath. I think i can learn a bit from watching my own stocks as well as watching what other are calling out...I have to record this morning because its also swimming lesson day for my little fella and my wife is not comfortable driving here yet.

Hey CanOz,

I am enjoying reading your thread and the switch to ASX equities. Just wondering what the trading room is that you were referring too that had Bryce Edwards and Alan McGrath in there?

Cheers

Luke

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

Hey Peter2,

You mentioned "bella's books". Just wondering what bella's books were?

Cheers

Luke

Mike Bellefiore

One Good Trade

The Playbook

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

Hey CanOz,

I am enjoying reading your thread and the switch to ASX equities. Just wondering what the trading room is that you were referring too that had Bryce Edwards and Alan McGrath in there?

Cheers

Luke

Hi Luke,

I took a $10.00 trial of Alan McGraths CFD Traders Edge chat room.

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

I replied to another member on a PM regarding a switch to equity trading and this was my reply

At the moment i'm still not sure i want to throw out 5 years worth of work on indices. I've a handful of setups that can work into intra-day plays that can/should work on any market, so working on putting these into a trading plan at the moment. I realized that intra-day equity trading was going to mean a completely new plan that would require much more work each day than i have available time. I'm willing to dedicate 8-10 hours a day on something, but really don't want to re-invent the wheel unless i have no choice. I have a proven method, so why not first see that it can be applied to other markets including perhaps, some liquid ASX equities eventually. If i can trade a couple of indices, the SPI, HSI and HHI using my standard setups and plays then that should be enough trades. I can also add some weekly FX plays based on the same sort of thing.

I'm just not sure i want to re-invent the wheel after i finally realized success on indices, its a difficult position to be in....in any case i'm in the lucky country and very grateful for that!

I've got time if i need to switch, but as Peter2 and SKC mentioned, this is a big switch. I need to make sure i can't be successful on what i have developed in the past first, before i start the switch.

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

Spark Iguana2 filters for screening....allot of potential here. posted for the benfit of member that PM'd me.

 

[VSntchr]

Re: A transition to ASX Intraday Equity trading

Spark Iguana2 filters for screening....allot of potential here. posted for the benfit of member that PM'd me.

Based on having a look after you mentioned Spark, I applied for the trial. WOW - super impressive and really makes webIress look very dated. It's the first platform that has provided me a chart with VWAP too...something I have found lacking in most others.

 

[Gringotts Bank]

Re: A transition to ASX Intraday Equity trading

Based on having a look after you mentioned Spark, I applied for the trial. WOW - super impressive and really makes webIress look very dated. It's the first platform that has provided me a chart with VWAP too...something I have found lacking in most others.

It's got unique features, but is hard to navigate (highly counterintuitive) and expensive. Pros and cons. Useful in the midst of a raging spec market, like recently.

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

It's got unique features, but is hard to navigate (highly counterintuitive) and expensive. Pros and cons. Useful in the midst of a raging spec market, like recently.

Funny, i thought it was very intuitive and cheap!

 

[skc]

Re: A transition to ASX Intraday Equity trading

Funny, i thought it was very intuitive and cheap!

I think it's a pretty solid offering. It has good scan capabilities for intraday movers, and it has a good market depth visualisation that isn't available anywhere else.

It's been some time since I trialed it. I wasn't a huge fan of the "intelligent" column headings when you adjust a panel's width... and I don't like the fact that you can't actually trade through it. If you are trading fast action you need to use your broker's depth window which means it's clunky to take advantages of Spark's depth.

Also I believe the depth visualisation is a great replay/learning tool. Find a big stock on a big moving day and see how the depth build/pull etc.

 

[CanOz]

Re: A transition to ASX Intraday Equity trading

I think it's a pretty solid offering. It has good scan capabilities for intraday movers, and it has a good market depth visualisation that isn't available anywhere else.

It's been some time since I trialed it. I wasn't a huge fan of the "intelligent" column headings when you adjust a panel's width... and I don't like the fact that you can't actually trade through it. If you are trading fast action you need to use your broker's depth window which means it's clunky to take advantages of Spark's depth.

Also I believe the depth visualisation is a great replay/learning tool. Find a big stock on a big moving day and see how the depth build/pull etc.

Yeah that replay functions nearly worth the price alone to get more screen time in. I'm surprised they've not been able to pair with a broker and facilitate execution.

 

[Wysiwyg]

Re: A transition to ASX Intraday Equity trading

Yeah that replay functions nearly worth the price alone to get more screen time in..

Can you reveal what r.t. scans are of interest if that is not too personal? e.g. Break outs or trend changes.

 

[craft]

Re: A transition to ASX Intraday Equity trading

Its a lifestyle choice. I've been working off shifts and days/6-7 days a week for 25 years. I want a day job and i'm sharper in the morning.

I want to work from early in the morning until dinner time, no more unless its after bath/bedtime (family). Worst case i can trade Eurex products again, its familiar to me and i realized success after many years of screen time, but it means i'm not available at critical family times. I need to find a product that suits my preference for activity, but also my preference for time of day.

Hi Can

Welcome to OZ

Go long young man!!!!!


Aus equity market is pretty small and illiquid and transactionally not very efficient or cost effective. Longer holding periods help minimise these drags.

I know you said you prefer intraday – but if you’re looking at learning a new skill set.......

Even good traders retire someday – how will you manage your money when time doing other things is more important than time spent trading. (a concept you seem to be grappling with already) A long term investing skill set will eventually be required why not start developing it whilst you’re still sharp. To my surprise [when I made the switch] I found long term strategies actually more wealth creating. I use stock picking and valuation as my approach but if this doesn’t appeal I’m sure there is long term charting approaches that could be investigated.

Short term trading knowledge is a great foundation to launch into longer term investing. However the psychology is very different and will probably be the determining factor of suitability.

Any way – just a curve ball to consider, but overall the most important thing is to follow the road of greatest passion – it’s the journey that counts. If trading is your greatest passion then ignore my suggestion if funding and making time available for other passions is the priority then maybe consider.

Cheers