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ALSI Futures

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PAS
Occasional Contributor
Where can you trade ALSI futures or top40? I cant see it on the SFM paltform. I see in a lot of posts forumites are talking about trading the ALSI, is this ALSI futures and where do you do that? Thanks for info
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13 REPLIES 13
Electrox
Super Contributor
Hi PAS, ALSI Futures can be traded on GT247, Ideal CFD's or DWT.co.za. These are the ones I know but DWT is the CHeapest way to go.
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KJR
Frequent Contributor
Why does SFM not offer the ALSI futures or do they plan to offer this in the near future? The option would be to operate two trading accounts with two different "service providers".
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Not applicable
They do offer the facility. You can trade the ALSI via warrants. They are not suited for day trading though, since the gearing isn't high enough. I am currently short on the ALSI via TOPSBS put warrant
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PAS
Occasional Contributor
Thanks for info, is Warrants not suitable for day trading and what about SSF for day trading? I have not traded warrants but did try SSF's. Lost a lot of money and now I just sit on the side not knowing if I should get back in. Using Amibroker to do some basic TA but not sure if I should get back in. Reading a lot so maybe for now just sit on the side while paper trading till I am confident enough again.
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cfm
Super Contributor
With SSF there is at least a 0.8% spread. If you trade a SSF of a derivative (e.g. STX40), then there are two market makers and the spread is larger. So, you start at a huge disadvantage if you try to day trade. Not recommended.
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Not applicable
Trading is a numbers game - and you need to be focusing on your risk/reward ratio. There is no point risking 10% on a trade, if you are only planning on making 10% since you will fail at least 50% of the time. Sideways markets are the biggest killer, since your risk reward ratios are very low. That does not mean that there aren't any strategies for trading in this type of market, but it is harder
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reyden
Frequent Contributor
Hi Skaaptjop, do you base your entries on technical analysis indicator, fundamentals, patterns, gaps etc. What time-frame do you monitor for your entries?
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Not applicable
i am not the best person to ask advice, since my trading record is hardly enviable. What I have learn't though, is that the entry is not nearly as important as the exit. I recently read Trade your way to financial freedom by Van Tharp. In it, they claimed that they were able to make profit in a trending market with a completely random entry strategy (with a big enough sample size). The reason is because they knew how to let their profits run. I am still struggling a bit with this, because I have a tendency to get out of profitable trades too early, hence my risk reward ratio is not high enough (I have a personal target of at least 2* risk on a trade)
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reyden
Frequent Contributor
Thanks, let me get hold of that book
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Not applicable
If im not mistaken, you would need about a R12k margin to trade the ALSI on GT247.
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Not applicable
Ja, but the actual margin is dependent on your stoploss. If you set a 60point stop, for example, your margin is only R600. The big thing you need to concern yourself with is portfolio size. I haven't worked out a decent portfolio relative to the risk/reward ratio yet. The issue is that if you take too many hits, you will reach a point where you are unable to recover (your portfolio will fall below a percentage value (like 50%). Also, I don't think you can make money just trading a single contract. You need a minimum of two - 1 to get out on initial target and a second to go for the bigger potential profits. With a single contract, you are going to want to take profits too early each time
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Not applicable
Correct. Having said that, others reading this may be tempted to get into the trade thinking all they needed was R600. I always work on a safe enough margin which affords me the opportunity to have trailing stops and be in a decent sized trade to warrant the risk/reward factor. Fair point on the two-trade issue.
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Sugar_Snap
Frequent Contributor
Yes agree, it is very difficult to trade futures if you are under capitalized.
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