Hi jerustin.
yeah I trade the DAX using CFDs
also the XJO, FTSE100, and DOW
they appeal to me going both long and short.
Mainly only trade them short term and rarely hold overnight.
Right now with the change of daylight saving and the DOW not opening until
1.30 AM our time I’m generally in bed before then and I don’t trade it, but occasionally I do.
But the CFDs are going all the time and pre open do give an indication
Keep it very simple
Basically I use 10, 30, 50 moving averages on 5 minute chart.
and when they cross over, I trade in that direction accordingly.
Nothing fancy and do it exclusively on my iPad
Completely portable during day if I’m home,or out and about
and at night for the others while sitting watching TV or whatever.
While all 4 markets are independent, they do tend to follow each other.
So while following is not always the case
if I intend taking a position say on the DAX
I will also look at the FTSE chart ( and vice versa)
if they are both moving in the same direction, it does improve the odds.
And in the morning the overseas markets do give some indication
of the expected direction of our market for the day.
But again this is not always what happens.
so i do look at other things like how much % wise the other markets have moved
and if our market has already anticipated this and the CFD is “overdone”.
And there is often good money to be made on the opening of the XJO when our cfd price is too far above or below the actual index closing price the day before
Simply fade the CFD.
again.... not guarantee to always work, but does much of the time
Keep it simple
An observation specifically on the DAX
More so than the others, it can make big and sudden moves.... so beware!
now to address what you are attempting to do.
I’m not interested in the specifics of this.
There are any number of ways of getting entry and exit signals.
The important thing is to find something that works for you.
Sounds simple.
But the fact is, the vast majority of participants lose money with ANY system they employ.
And given all the systems and techniques this seems strange.
But the truth is there is no fancy system which guarantees success.
EVERY SYSTEM,
A CHART IS JUST A GRAPHICAL REPRESENTATION OF PAST
PRICES
AND EVERY INDICATOR IS A MATHMATICAL DERIVATION/MANIPULATION OF PREVIOUS PRICES.
So it is pretty much impossible to reinvent the wheel.
But in my belief the more fancy or complicated the methods are, the less likely they are
to succeed.
So what is the secret of making money from CFDs or futures on the indicies.
It is absolutely about money management.
The first aim is to not LOSE money.
( You will note ......it is not to make a profit)
That follows on from not losing money.
