skc
Goldmember
- Joined
- 12 August 2008
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- 8,277
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Re: A transition to ASX Intraday Equity trading
- 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.
- 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.