In this video trailers we’re going to look at what are the best indices to trade, with pepper stone, stay tuned. Welcome to you.
Thank you for joining me all right, so this channel sponsor is peppa stone, they’re sponsoring this video? If you want to check them out, the link in the description below cfd spread bet one of the kind of asset classes they offer are industries? Of course they offer so much more go and check them out see if they offer the market you’d like to trade, pretty sure they will our cfd spread but, like i say, mt4, mt5c, trader, regulated well respected, well regarded but indices. They offer an awful lot of indices and it’s kind of can be a little bit overwhelming right.
It’s good having choice. Of course it is, but what are the best ones to trade and why this is my opinion? uh?
Some people may disagree with me and interested in the comment section below what you think, whether you think i’m talking complete nonsense or whether you inclined to agree with some of my points of which ones, i think are slightly better to trade than others. So i’ll split them up into europe, u. S and asia, as you can see big selection here, but they also have a different quirks, a lot of different kind of characters!
They’re, like almost like children right? You know, some of them are a little bit hyperactive and swinging around over the place, something a bit more measured and thoughtful um, and this is the same with indices! Funnily enough- and you know what the the key to this guys is that what’s right for me or what i think is the best index to trade or the best indices to trade, may not be right for you, because you might have a different style or strategy quick example might be. If you kind of like trading mean reversion, quieter markets, thicker markets aren’t so spiky through lows and highs.
You might choose one market if you like the big action, quick spikes, the big drives, the big moves out of nowhere.
You might choose another. Let’s talk about the characteristics of them! So don’t forget guys. These are pepper stones, equivalents of underlying indices, so eustx 50 is the euro stocks 50 equivalent uh, that’s the equivalent of the cac france 40 german 30 is the dax equivalent italian equivalent. Uk 100 is the footsie, and then we’ve got the spanish 35. S, p, 500 here, nasdaq, 100, dao russell and we’ve got australian, japanese, hong kong, chinese and they’re all equivalent, nikkei, etc, etc! So these are the equivalents because they’re wrapped up as a cfd, they have to name them slightly slightly differently, but you are still trading effectively that underlying okay. So let’s look at europe first, what are the best ones in europe? in my opinion, the very best one is the dax. I, like the volatility of the dax. I like the fact that the spread is tight. I like the movement, it just seems a bit more active, a lot of liquidity underlying markets. Well in the back sexual futures exchanges super super liquid super super active um. It’s one of my favorites. I like the fact that it moves quickly and the good thing is, if you’re day trading this um, you know the spread is meaningless compared to the range! That’s something to consider guys if you’re day trading, you don’t want something with a big spread and it’s got a small range because you’ve got to overcome that spread? Just by you know it just just a long thing say: for example, let’s say your range is 100 points spread is 30. , it’s just never going to work for you if the spread is 30, but the average red deadly range is like 30 000 or a thousand all of a sudden. It becomes meaningless. You get the point, so my first would be the the dax. My second would be the footsie, i’m not a big fan of the footsie, but it has got some nice attributes. It spreads nice and tight with pepper, stone, go and check it out! Um, it moves quite cleanly. I think those two are the kind of go-to ones.
I’ve not traded the footsie for a while dax is a little bit more active in the backs in the footsie, but you know they’re they’ll, the go-to ones! Now, let’s look at some of the others euro stocks to me, it’s bit thick. It’s a bit small, it’s a very low priced index, so the range isn’t so much and the spread to range isn’t really suited for day trading.
I don’t think if you’re swing trading it, of course it doesn’t matter because you’re looking for kind of multiple days, multiple months moves, the spread becomes more meaningless?
So there uh same with the cac again, not a big fan of that. This italian and the spanish 35 these are can be spiced under certain conditions? Remember we’ll go back to the gfc, you know these were getting powered and they were big big moves um and that was kind of the last time i traded these things because it was very specific news flow around some of these countries, and so it’s nice to have the opportunity to be able to trade these and be able to, but i don’t think for me they’re, not regular trading vehicles.
You might disagree with me, but i think if there’s something going on in those markets, then of course the volatility picks up spread becomes more meaningless as an opportunity day trader! Let’s move on to the us go swimming across the pond um the the average were the kind of usual ones here, guys sp, 500, etc, etc, etc. Dow super popular i like dow spreads tight compared to the range at the moment is anyway it always gets a tick in the box for me same with nq or same with nasdaq 100. You know big big range, lots of volatility, not dissimilar to the way that the axe moves is kind of swinging around at the moment are big moves great day trading vehicle um!
You know super super volatile spreads tight compared to the range all the boxes ticked for day trading! If you’re swing trading, you want something a little bit, maybe thicker um?
Obviously the kind of smaller lower priced is the margin requirements?
Uh become less per unit, so something like the s, p 500, not a bad vehicle.
They’re going to move? You know the dow and the s p 500 are going to move? You know pretty similar nasdaq’s on its own little run at the moment, because it’s so so much tech stocks are moving around uh. I know there’s some kind of interchangeable there with the indices, but nasdaq is a little bit more fruity.
Comparatively speaking, i’m not a huge fan of the russell!
I wouldn’t trade that personally, you might find there’s an edge there for you.
We have had a situation where the russell the russell’s been out performing a little bit and there’s been a bit of a kind of divergence if you like in terms of performance between some of the indices but number one for me, uh probably join first, it’s gonna be the nas and the and the doubt you know the good solid day trading vehicles good for swing trading as well!
If you’re looking um for a day trading vehicle, i probably wouldn’t go the s? P 500! it’s it’s slim! you know it’s! okay, it’s not one of my favorites. Maybe i’ve got some bias because i’ve traded the dow for so long and i’ve got a bit of an affinity with that. I like it. I like the way it moves.
I can’t get a feel for it and the nasdaq has been super super volatile at the moment anyway, um so yeah. Those are my us ones. Asia. I personally have not traded the asian industries much? I i have over the years over the 20 years, i’ve been training, probably dabbled in most of these, but i’ve not for a while?
So you know take this with a pinch of salt, guys um, you, the thing is with asia. Is that i think, if you are based in that country, you kind of have to choose this because of the time zone. You know you are in a situation where, if you want to trade day, trade, something you’re gonna have to pick, because the nikkei is a hang saying. What are you gonna trade um, and then you kind of pick the one that’s your native exchange. Maybe if you live in australia, most people are gonna, be trading uh, the native exchange, that’s just generally how it works, and so i don’t know which one is the most volatile from this i would say at the moment you know the nikkei has always been kind of a spicy! One. You’ve got that interesting thing with the breaks and the actual exchange in the middle of the night or middle night. For me, which can be an advantage or disadvantage spread super low best thing for you to do guys is to go and check them out! It’s nice! You can get some exposure to china as well, and not all brokers will offer that best thing to do is go check it out and just see the range, the spread, the range, the margin requirements, the time it trades the most active time it trades and then choosing the vehicle for you.
So if i’m going to kind of do my top five, i’m going to go with nasdaq 100 dow i’m going to go with my dax, i’m going to go with my ftse 100 and then i’m going to go to smp 500! .
That was my top five indices in that order? Let me know your top three in the comments section below in order of preference? What’s your go to what’s your second and what’s your third, while down there guys do check out peppa stone a channel sponsor, see you next time bye, you!
?