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Many thanks for opening admin one.

 

Not too sure how many trade futures as well but shall make a few comments for any who are interested.

 

Sorry to be up at 6 am but this flu is a killer.

 

SPI futures fairly dull up till now trading ina 45/55 range with the low being hit prior to NY open around 9.30 pm last night. The high offer with around 50 on the offer at 55 was just taken out with the dow finally going quickly from 20 down to slightly up. The offer was taken out but both the dow rally and the buying in the SPI stopped dead for now.

 

We shall see what the close brings but not expecting too much.

 

Market awaiting all important non farm payrolls on Friday.

 

I shall post later what I expect the days SPI trading range to be.

 

At this stage bigger picture is to sell 3460 plu and buy 3440 ish.

 

I still feel our market will attempt a break before Friday regardless of the US but it will fail.

They have been trying to get it to break down so suspect maybe the unexpected and they try the top ... but suspect they will fail

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Wide range for the day from me is 3468 to 3442

 

Opened weak at 3449 but feel they want to try the top resistance at 3465 and 3467 ... sell there

 

support at 3447/3445/3441 if 3441 trades bail.

 

Currently creeping higher but feel it will be a struggle above 3463 ...

 

sell 63/67 s/l at 3469

 

buy 3447/3442 s/l at 3441

 

good luck

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Kahuna

I spent the past year trading futures. I have 8 years as a trader/stockbroker behing me and also worked on the floor of the SFE in the bond pits. I found it a very tough year. I have since moved to trading CFD's both intra day and over several days ( still a week into a BHP long position ) and I must say that my stress levels have come down and my profits have gone up. When CBA or ANZ or BHP trend, they trend stronger and with more liquidity than the SPI. The ability to go short and long as well as the 5% and 10% margin required make it a fantastic trading vehicle. I found my stops being toyed with when a large insto came in and blasted 500-1000 lots before the market resumed its motion. Just too illiquid. I recommend that you look at CFD's after having spent time trading the SPI - the SPI sure does sharpen you up and everything else seems easy afterward.

Regards

Hector

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I use CMC Group (www.cmcgroup.com.au) brokerage is 0.1% of the face value of order.

So if you buy 4000 BHP CFD's : equivalent to 4000 shares $48,840 and brokerage is $48.84 cheap. Also BHP's margin requirement is only 5% so I need only $2442 in margin to trade this parcel and I can go long or short.

 

I attended a course by David Johnstone which I highly recommend too. He goes over a lot of basic stuff but the course flows and he opens up the world and opportunities in trading CFD's - there is a book by Catherine Davey that I think is worth reading too, called Trading CFD's I think.

 

H

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Hi Hector,

 

I hear what you are saying.

Not a fan of other products. Have been full time trader for 22 years. Just thought I would see if anyone followed the futures.

 

 

Not an easy game but been doing it so long I am used to it. It is a matter of trying to pick the ranges and sticking to it. For exaple thogth it went up today from the late part of SYcom and we had a test of the 3465 level despite the market feeling offered and the SPI opening weak. Was small long and didn't offload till 3463 and short at 66 and 67 and 68 ...

I shall religiously stop myself either at 71 or 72. Bottom line wont hurt much. Market feels and looks bid now and it is tempting to just take them back at 68/69 and scratch the trade, but I have found it better just to set the stop and walk away. We shall see on this one today.

 

As for general trading in the SPI I find the swings when big orders come in helpful.

Each day I pick two levels which I feel are ridiculous and stick to them.

This morning I felt if 41 traded we were out of what I felt the range would be.

On the top ... I was bullish and felt 65 would be taken out and maybe up to 68 ... was a tick or two higher. But again if it trades at 3472 I have no idea where it is going.

Currently 6 short at 67 and shall not touch until either stopped or about an hours time.

No use having a 5 tick stop and taking only 2/3 ticks profit.

 

Anyhow thanks for your call on CFD's.

 

Make most of my money physical stocks but play with futures and pick up a decnet amout there. Also trade the bond futures and take a small ozzie position from time to time.

 

Good luck ... it has gone from 68/69 to now 64/65 since I started writing.

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www.marketshare.net.au

 

His website might not be updated but the contact details are there and he can send a summary of the course. He is a fulltime trader but does not profess to be a guru. Just good solid and simple trading methodology and it does not cost an arm and a leg. Well worth the money.

H

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