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Day Trading Indicator

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Frequent Contributor
Hi Guys Can I use ADX or Aroon to assess strength of trend in Intraday trades? If this can be done what is the best time interval to use intraday when trading CFD's. I read somewhere that ADX does not work on intraday trades - true? Many thanks.
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Super Contributor
15 minutes, have never used ADX for intraday
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Super Contributor
No such thing as a best interval. Decide on what fits your trading style,available time and commitments and use that. So if it's 30 min and you get a signal, use 5 min to time the trade. Then add your target/s and your stop loss, and go fishing.
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Not applicable
you can't trade intra day using CFD's
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simple mathematics - and one of the primary rules of trading - understand your cost base. CFD's cost 0.4% each leg - so 0.8% for a trade. Now add the spread (typically around 0.5% for liquid stocks - so your transaction has cost you 1.8% before you have even started (now add slippage and you are likely to be much higher than this). Take a liquid stock like BIL - with an average true range of 850 - that equates to around 3.7% movement in absolute terms. So half the absolute (peak to trough) daily price movement is taken out by your transaction costs. So at very best, you can get a 1*risk / reward ration. and for that - you would have to be good enough to pick up the extremes of the price movement to be able to consistently make money - and nobody can do that.
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Contributor
Have profitably traded NPN intraday with CFD'S , spread rate cost is 0.35% in and 0.2% out (intraday discount) on OST.
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Well - the math still sucks. 0.55% brokerage, bid/ask spread still probably around 0.5%, and an average true range of around 3%. But that is skewed by big gaps thanks to overnight trading on Tencent. So on average, your costs are 50% of the daily movement average. That gives you a 1*risk/reward ratio, which is louzy. And that is not taking slippage into account, which kills the math completely. No ways you can consistently make money trading with that type of cost base. This is trading 101 people, every text book in the world will teach you this. Understand your cost base - and trade instruments that give you the risk reward potential you need to be successful. In the JSE, for day trading, only futures contracts can do this.
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Super Contributor
@kwagga and Barry, have you noticed how little warrants options are currently available. I recently made +/-R3000 trading a fsr put warrant. Felt really good ,trading this ancient instrument.
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Super Contributor
@skaap, your argument applies to a market that is range bound and is therefore not applicable in a market where there is extreme volatility and extreme price swing. Not everything is black and white, sometimes your "eyes" are the window to the trading wo
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Super Contributor
@skaap, your argument applies to a market that is range bound and is therefore not applicable in a market where there is extreme volatility and extreme price swing. Not everything is black and white, sometimes your "eyes" are the window to the trading wo
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Super Contributor
I don't like warrants at all. Way too much control in the hands of the market makers to do as they please. With trading you control entry, stop loss, money management, risk reward, exit. This is very limited in itself, so if you now have to deal with a market maker what can increase the buy/sell spread, limit liquidity with big market moves, loss of value as the warrant becomes more mature, this instrument looses it's appeal completely. Over the longer term you're going to find it very difficult to make money from warrants consistently.
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Super Contributor
@kwagga, agreed. The key here is speed/timing. In and Out like a "green Mamba" .
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Super Contributor
is the Black mamba not faster?
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