Hey guys so in this video we’ll look at the indices, if you’re scalping the indices which the ones we can look, how why i think indices actually present a really good opportunity at the moment for scalpers, hey, okay, so well ago, forex i, look at commodities and the kind of confusion is okay. Over some we we came up with this.
Look. If you want to pick a market to trade regularly, you must be careful about.
The spread must be careful a commission in relation to how much it moves the spread can be huge if it moves a massive gigantic amount in somewhat irrelevant? If it’s spread is huge that doesn’t move that much then.
Yes, there are opportunities, but as a bench market might not fit something you want to rate 1015 times a day?
However, let’s have a look at the indices and let’s have a look at some of the spread costs at the moment? If we’re going to trade them bar cfd or a spread bet, and then look at how big they move! Let me think see why i like trading these from a scalping perspective and why i think that potentially this could be a profitable vehicle for you, alright, so it’s over the dac. So that’s the moment as i am typing. This is a spread of 1.
8, but however, i know that i was not typing this someone filming it.
However i know that it’s actually less than that during the market hours, it’s almost around a pip or a tick if you’re trading the dax during market hours of its closed at the moment, but we think ok, fair enough? So if we now have a look at the total range of the dax, let’s have a look at total range of the dax average.
True range guys is near on a hundred and seventy pips. Now it’s coming down actually recently, so you’ve now got i keep saying pips dunno, but it’s it’s ticks when we’re talking about an index, so 170 ticks move to 200 ticks move with a one-point spread? Admittedly, you’ve got a little bit wider after hours or so accommodate that, but even so that’s pretty decent right. That’s pretty decent kind of opportunities and, like i said that could be multiple moves up and down within the whole day, but that kind of gives you an idea? Well, actually, i can probably trade that from a sprout baby perspective or i’ll cfd perspective and the spread isn’t too much of a damage to my position. Let’s have a look at something even better at the moment that dow, so the down at the moment has got a range of almost 400 for every true range, almost 400 points and a she has come down a lot and i’m recognized with a volatile period, and there are times and i’ve trade it when it’s had like a 50 point range, which is waste of time from a scalping perspective! They train okay, but just from now when i’m filming this we’re talking about 400 point range and if you go and trade that virus spread back or you go and trade it virus cfd, it’s about a 1 1/2 point spread, so you are getting a massive amount of opportunity for very small spread and again reiterating it’s not the be-all and end-all! But the volatility is decent? You gangs drives up that are significant enough for you to get a good chunk of the move. You’re getting different market phases, you’re getting a distinct open which i like, of course, you can probably trade it 24 hours at most brokers, but i like the fact there’s a cash open as there isn’t access or is of the dow. So the market opens and that’s them and that’s the beauty of the indices. Guys- and you know we can kind of talk about those in a second. But the beauty of the indices of scalping indices is that you have a opening bell where everyone rushes to get their orders in and that’s the event forget? The index is made up of the cash constituents and then repackage into an index, even though it trades 24 hours a day on the kind of futures price! The fact that the cashing next kind of has a volatility to open means there’s opportunity there that’s slightly different to say forex, which, although is 24/5 as we know, and it does move a little bit more aggressively at the open and close, but only because there is an influence from the cash section? So if you can trade the cash directly, you could say: okay well, i can trade the opening hours and there’s well. Let’s see, let’s see there, i can trade the closing hours volatility there. The spread is reasonably tied, so i’m taking that box to range reasonably big. The moves are relatively clean and go to this now it is always going to be like this. No there when the indices have been absolutely awful and it’s been yen, that’s been very, very profitable from a scalping aspect perspective or it’s been crude oil. But if we’re comparing these and we’re looking at them- and we say okay well, this is not too bad net. S&p 500 is a little bit different. S&p 500 has a far less of a range!
If you like well, it has got far less range in terms of ticks, moves or dollars moves, so you’ve got a a $40 range, so let’s say it’s 2,700, but a $40 range so reasonable. But if you were trading that then and now this is but way better than comes some of the currency pairs. But if you were trading the sp500, let’s have a look at what the current spread is at the moment, so kind of spread a moment is five points if you’re trading of our safety or a spread bit now considering this thing moves a decent amount that isn’t that great, it’s okay and that’s always been the trouble i think with the sp500 if you’re trading it directly on the exchange.
Now i might get some grief of this because the majority of people scalping in the us are trading. S&p, 500, futures i get it and it makes sense if you’re trading on the order book, because you’ve got a quarter, point spread, and you can certainly order book. You can get filled and it starts moving your direction? You can kind of an get a decent amount of bang for your buck if you like, but if you were trading in via a cfd or spread been it’s! Why people have asked me over the years, especially your america. So why you’re trading the dow? well, because you know controlling from about a point, i can spread better and i get a kind of same movement of the s&p 500 right moves!
Reads me the same pattern, but i get far more. I spread is far less. My costs are far less compared to s&p 500 and the one thing as well to point out between these two guys in something which we haven’t come across.
Quite yet is the thickness of the s&p 500 versus, say the dow, for example. It could be better than as that, but let’s just use the dow’s example. The order book is relatively thick on the s&p 500, and so you haven’t got as much of a tick. Many multiple tech moles as you have one was dow, but the thing is: is that because it’s so thick, if you’re trading a market order strategy, you’re paying more to get him because the spread sort of potentially wider than if you just paid a pip to get in or tick to get in or point to get in with spread bear? and so, if your constant using market orders, it’s not that useful to try the sp500. If you were trading a limit orders i’m prepared to sit on the order book, then it becomes better because you’re capturing the spread which is proportionately a wider. So this is the kind of thing for you to think about in terms of your settlements, trust you i will always been generally speaking when i’m scalping is like hey i want to get on it now, i want to hit the market and we’re doing that constantly on the smp you’re going to get hurt, because even if you go and trade advice spread bet all via i cfd you’re paying world well! This is five points here and if you’re trading, the market you’re a quarter point plus the commission, so it’s better to be able to work the order. If you can. Oh, then it’s not possible at all, but this is all about matching the strata of the market to your strategy. If you’re kind of girl girl who likes to hit the market nice to get into train immediately, you want that tight spread! You block that decent range?
If you don’t mind sitting there working an order, then the wider, the spread technically the better, because if you’re always gonna get filled on the bid and full on the offer, you’re really capturing the spread. So it’s something to look at guys.
Okay, that’s a reasonable spread.
Its 15-point spread. If we’re looking to see after your spread bet range, is kind of 300 points. That’s quite expensive! better? If you go direct i’ve, never traded the nikkei one of them? One things i’ve never tried it directly on the exchange, traded virus, probe or cfd, but not in exchange, so not familiar with what the order book looks like, but that’s one that comes in and our favor one that’s really hammer as well. That can do a thousand points in a day very, very easily, and you owe stocks? This is similar to s&p. 500 in terms of thickness is much thicker than the dax or the footsie, so it doesn’t move as much. It takes much more thickness. Basically, is how much volume and how much money it needs to move it and one more print up, one more prints up one more printer, the thicker it is, the more volumes required think about few waters there. All it takes is a little bit of money and the thing moves four or five six! Why the doctors on often swinging around like this, the sp might be a big joke?
Chelios docks might be chug-chug-chug, so something to bear in mind. Look at the cross, the trade for you, particularly with your broker, look at the range at the moment in time. Look at your strategy. Look at some strategies in a second, but look at the bigger picture and say you know why? actually, maybe this is a better they’re, not all the way for me.
Maybe this one is and pick the one that works through the point?
There’s so much choice out there! It’s about picking! what’s right, for you guys anyway, just i mean this is my favourites are definitely the dax and the dow, but some others there? If they float your boat, you!
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