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Anybody successfully trading the index in the last month?

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Tango
Super Contributor
Been mostly in a 2.5% band, and total range in the last month or so is about 6%. Big intra-day volatility, and no trend to speak of. Or is it just me?? Simon, when last did your lazy system fire on the Top40
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22 REPLIES 22
Not applicable
The volatility is good for me as an intraday trader.Long and short. No stops, just dont stray too far.
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Tango
Super Contributor
Good for you if you can trade this.. what instruments are you using? I've been dabbling with ALSI futures - amazing leverage, close spread, and low trading costs. But the swings are too large for me. Trading just one contract at a time is seeing R3000+ swings intraday.
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Not applicable
TOPDWM and S. The ALSI - Im starting next week with 2 contracts.The nicest thing about the ALSI is that it only has 1 limit - Expiry.I love the gearing on these instruments. A few days ago my partner had an R11 000 swing on the ALSI, although he never got out. Ive decided to trade the ALSI a lot like the waves and if you make the wrong choice, just wait it out. The market for now is choppy enough to get you out of almost any bad decision, but im sure it wont be long till you only need to go long and watch it grow.
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PS Ur right about choppy. The DMI(ADX) has generated 2 buy and 2 sell signals within 9 trading days.
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Tango
Super Contributor
Yep, the leverage and swings are amazing, but you don't want to be on the wrong side of them. In the last few weeks we've seen 500pt swings in just over an hour. We also get 300pt gaps overnight if you hold. But you probably know all of that.
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Tango
Super Contributor
2 in 9 days? I got whipped out of 2 trades today!
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The leverage and swings are just what u need to make the moolah. But yes I do understand about getting it wrong. The best thing I found is to stay long overnight and to trade intraday, because most of the ALSI action is after 16h45 and before 09h10. With the waves,the auctions can be a big surprise, and thats why I rather lean to the long side. Its more likely.
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Do you use stops? Personally I dont think its worth having stops on the waves, cause the price often falls through your limit if no trades go through and on the ALSI at the moment, Id rather trade manually without the stops. Its just too choppy.
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Tango
Super Contributor
I always use stops in the sense that when I place a trade I mark exactly the point where I've decided that I'll know I'm wrong and the trade has turned against me. If that point comes I execute the stop myself and close the trade. I don't use arbitrary % stoplosses. For instance, I currently hold GFI, stop would be a close below 11700. (Brazen, shaddup, I know I said I would never trade a gold miner again)
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Probably on of the hardest lessons I have yet to learn is when to bail out.Ive lost a lot of money that way, but ive also found that making plenty of small losses can cost u dearly when u actually should have stayed in and waited it out. 80% of my losses could have been avoided with a little more patience and bravery. I dont find that very easy.
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Zanzibar
Occasional Contributor
Thank you Georgem I thought I was the only hapless trader! Nice post all Regards
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Not applicable
Cheers. I wish I was a quick learner!
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kr_pto
Super Contributor
sadly i cant say it has been a good month for me. not index trading though. mostly warrants. made a fat profit of R165. yes that IS without the zeros or the K (i wish). at one point a week ago was just under my monthly target and planned to scale back to preserve capital. but then let myself get suckered into a few trades i convinced myself were too good to pass by (and which clearly were not). but all part of the learning process. and some are still open and above stop, so who knows, may work out after all. just dont have that discipline quite right yet. i ramble on and it is too late. goodnight all
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SimonPB
Valued Contributor
Tango, it fired/confirmed Monday last week and I am a few % under water as things stand.
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Beep_Beep
Super Contributor
I have tried futures since dec/jan but they haven't been kind to me. I have had more luck with the top40 waves - but then you have to sit around and be prepared to react immediately.
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SimonPB
Valued Contributor
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Beep_Beep
Super Contributor
Sitting on sideline - waiting for a pullback - got out yesterday.
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SimonPB
Valued Contributor
an turns out the close last night actually left me 2.1% in profit ???
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Beep_Beep
Super Contributor
I saw your lazy system trigger last week - I got in a bit late - so still a bit down. Simon are you in on the stxq or the stx40 share.
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