Wednesday, 9 November 2011

Focus on DAX

I'm an avid DAX trader, as you all probably know. It took me a while to get back what I lost trading that contract, all those years ago, but it was worth it. The tick size of 12.5 Euro (0.5 points) is fantastic for a contract that can move 2,500 to 5,000 Euros during the 14 hours of the day that it trades.

More and more Americans are joining the party and volume has been climbing steadily, although a 300,000 contract day is still at the top end of, or even above,  normal.

The fact that the DAX trades for 14 hours a day means that it is available to traders from all over the world in all different time zones. It is an extremely volatile market, but once it is mastered you don't need many good trades in a day in order to hit the goal of even the most ambitious trader.

Caveat Emptor: DAX takes no prisoners and even a CP trader would find it worthwhile to SIM it until they find their feet. My cost of not SIMing was considerable. I didn't SIM, as the technology was not up to it back then.

The trades on the DAX chart below are fairly representative of what can be achieved using my methods. A lot of it can even be automated and Hybrid trading the DAX is a great help due to the volatility. Flo enters on limit orders, exits on limit targets that I post manually and I stop myself out manually when I am wrong. No slippage is the result.

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