Question for John

[quovadis]

As I recall, you have mentioned being able to trade the Alsi with a guaranteed stop at a cost of R30. Please let me know on what platform and on with what type of account that facility is available. As I understand the IG Index platform a stop on the Alsi must be placed 300 points away and a guaranteed stop will require a further 15 points. At a minimum of GBP1 per point that would make a total for a guaranteed stop on IG Index of GBP315 which a current rates of exchange is quite scarey.

[#2]

Its is R60.00 Idealcfds.com works on 6 point margin for futures R50.00 per point and contract is 70k for one, the mini futures is at 15+- points witch makes it R150.00 and 1 contract is 14 k

[quovadis]

Thanks Hennie.

[john_1]

The stop is 300 points but the cost of trading is the usual spread + 6 points = R60 insurance..if 300 points is to much for you then NEVER trade overnight as it is quite commonr for the market to gap much more than that..but IF you are going to take that risk do it with confidence that it is your maximum downside is known and understood.

[#5]

John....u seem to be one of those traders who can sell themselves any c r a p.....that is not the cost of trading.....if they will only allow u to have a stop 300 pts away that is the actual cost...

[#6]

John if u are the kind of trader that will throw away 300 pts that does not paint a picture of prudence, parsimony or a systematic approach to risk management...the question you as a trader have got to ask ...are there not enough points in the day? (in an environment which allows me to act upon market movements). Holding overnight is a stupid desperate thing to do......if you want to experience what it is like ....enter a position using a coin flip and then get someone to handcuff you to your chair and leave you there all day watching the screen unable to do anything about it...you may be lucky you may not but one thing is for sure its the best way to end your trading career....

[john_1]

Chartist...Your have lost R150 000.00 on single trade overnight..My largets ever loss is less than 800 points in any kind of trade and that has only ever happened once...Who the FUC# are you to tell me I am tardy...

[john_1]

And I never said it wa the cost of trading I said it was the cost of insurance...that is a very very BIG DIFFRENCE..IG offers the cheapest black swan cover you will ever find..and THAT IS THE POINT...in this market were central bankes are intevening in the markets Black swan cover is not a bad Idea....the insurence cost R60 the trade worst case will cost you 350 points.

[#9]

Moel mekaar, ek haat vrede!

[john_1]

To those of you who can see past chartist slander..I have a continous trend following system so as such I am often in the market overnight just as any lazy system would have it...rather than use warrants I use the alsi...my normal stops on my system are wider than 300 points so for me dropping my stop to 300 points actually reduces my risk so in this context IG works very very well.....I have never and will never trade an overnight alsi contract without the guarenteed stop.

[#11]

John John.....I didnt lose 150K on an overnight trade... pse get the facts straight....and if I had it would only further illustrate the point I am trying to make...John you said and I quote "the stop is 300 pts but the cost is R 60...." I think an reasonable sentient being with even a modicum of intelligence would read that what you are saying is the huge totally unreasonable stop is not part of the real cost of trading....John....what u are trying to do here is beat the system not the market...the spread betters are not fools they make money from the fools

[john_1]

I am not having this conversation any further.

[#13]

John so I think my point was illustrated at the open this morning....I notice after the close on Friday you were going on about how the market would gap down this morning.....which means you would have been short...so you threw away 350 pts....nice to make a loss before u have even started the day?......BTW what ever happened to gap trading?....I still have all the emails where you thank me profusely for introducing you to this wondrous setup...holding positions overnight are for those who dont know about gaps?.....surely? why trade the completely uncertain when you can trade the high probability....maybe it has something to do with only having enough capital to trade one contract?

[#14]

I think what John means is the cost for entering the trade is 60 points (the spread). Actually it is 45 points. You can always set your own "artificial" stop by exiting the trade early if it goes against you. The 300 point stop only comes into play if you are not watching the trade. Of course, this would imply that you need to watch the trade every second if you wish to exit early...

[#15]

Zephyr...only one small problem...you cant cause the market is closed overnight!

[john_1]

I closed my overnight short with a profit of R4640 so actually its the other way arround.

[theyoungster]

Chartist drop me a mail [email protected] i want to ask you one or two things about gap trading

[#18]

John are u trying to be deliberately misleading or are u just dishonest? The profit u made (if you made it) was not made from any overnight movement) we actually opened higher today so whichever way you want to obfuscate and prevaricate your way out of this this simple fat is that your overnight short was of less value than a trade which could have been put on this morning...in fact it would have been far more profitable...

[john_1]

the open was 17300 the close 17320 so we actually opened down..

[john_1]

I closed my 1 short at 17306