Indices Trading – With CFDs (Americans Too!)

People, love trading indices and i, don’t blame them! It’s a lot of fun. I. Think trading indices with cfds is even better and i’ve also learned over the last year.

You know who really really loves trading indices, the germans they love trading, the dax. They also love david hasselhoff.

They also love currywurst, which is absolutely disgusting.

There was even talk of germany, switching at the national dish from sauerbraten to curry, wurst germany?

Please do not allow this to happen, you’re going to upset david hasselhoff, and nobody wants that?

That part was actually true, though germans really do trade, the dax a lot, the rest of it i’m, not even sure, but welcome traders.

A very highly anticipated video of video i had had queued up and ready for a while is just a matter of putting it together. Now, i always do this. First, a lot of people out there might be finding this channel for the first time through this video here. That is very possible. So let me explain to you all? First i am a professional forex prop trader!

This is mainly a forex channel, but we do tackle other markets and for good reasons. So this video is going to go on my metals and other markets playlist. This is something you really need to watch. If you love trading indices, there’s no reason you can’t get good at things like spot metals as well, and then this is the metals playlist. We just tackled oil and we are tacking on indices. This is really important because really in the span of one video, you could add an entirely new tool to your arsenal and i want to explain why in just a moment, but first just understand: i am not a super expert in indices trading, but i think i have a lot to offer here.

So i am an expert in forex. I can say that officially pretty much in metals – been doing it long enough oil a lot less so! But if you watch the oil video, a lot of the things i was able to show, people have already been paying off. Look in the comments section! People are like wow i just needed to make these little changes right here and now. My oil trading is amazing, so i’m going to attempt to do this as well, even though my real experience like really getting down to it and forward testing indices, has only spanned a little under a year, i’ve been trying just not really succeeding. I made the big banks, video, which most of you have seen two years ago and a lot of the questions i was getting in the comment section was, you know: does this work on indices too and i’m like i? can’t really tell you, because i myself am not having much success with it, but when i had that little revelation i had in oil, which you saw in the oil video i, was able to apply a lot of those things to index trading, and things turned around in a hurry.

So, even though i don’t have the same level of experience that i have in forex, for example, i’ve been able to collect a lot of data and information here and now!

I’m gonna share that with you, because it’s really important you put this together because just for example, let’s say you were able to trade, these four markets at a pretty mediocre rate, all right, you’re, no longer a break-even trader, you’re, no longer a losing trade, or you know you have a good algorithm. You have good money, management now and you’re, putting this together and you’re, not trading any of these i like a super-duper elite level, but you are very competent in all four of them all right.

This adds to a thirty one point: five percent return year after year and you’re, not even great in any of these you’ve just taken what i’ve shown you and become a lot better than most people just by fault. A 31.

5% return is absolutely ridiculous and the more of these markets we are able to add to your arsenal the higher this percentage becomes.

Now, if you don’t think a 31! 5% return, year-over-year is high. 1 you’re, an idiot because it is -, let’s put into perspective bernie freaking madoff got all of that money from all of those people? He had famous people. He had actual big banks giving him money? He had the richest woman in the world, giving him her money. Why? because he was able to crank out a consistent 12 to 15 percent return in the stock market year over year? A lot of people right now are getting really big returns when the recession comes. A lot of those returns are going to go away. If you can do this consistently year-over-year and be able to show that you were able to weather the storm and still put out these returns, you can possibly more than double the returns of some guy who was making those returns up and in turn was getting scores of rich people and banks and institutions to hand their money over to him. Now, of course, this level of success is not going to happen to you overnight! We need to build, but no better time to start than now? So in this video, what we’re gonna do is talk about! Cfds i have talked about this in a podcast episode already, but there is one aspect of it: a very important aspect that i did not cover, so we’re going to do that here then we’re going to talk about what makes index trading different than every other market?

We have spoken about on this channel and then because i don’t want 30% of my audience to go away? Americans! There are ways you can trade indices, all right, it’s even easier than the path you would have to take to trade! Spot metals, for example, so stick around and then we’re gonna go over technical analysis at the very end like we always do, but let’s go ahead and tackle the very first part of this.

The cfds now i love cfds, but there is one piece of it that we really need to speak about right now they are great, no doubt when they came around!

They allowed us to trade, pretty much any market we wanted to with ease and go long and go short with ease, but we have much more risk here all right. This is not the traditional way of trading in index. All right to where your trading points instead of pips, to where an index can’t go all the way down to zero, it’s almost impossible, so you have a safety net there with cfds. We don’t have that! No i’m cmt’s contain leverage, and so price can actually go past zero in your account and keep right on going if you’re, not careful, all right, we are dealing with a lot more risk at stake here now for those of you who have watched the money management playlist on this channel and you adhere to it and you abide by it, you really don’t have anything to worry about! We can trade any market. We want no matter how big or small, no matter, how volatile, no matter, how dead- and we will be just fine with that money management structure in place! I just want to let you know, and anybody who’s coming over from trading indexes or stocks in the traditional fashion?

That’s not what we’re going to be talking about here! We are talking about trading with cfds they’re, a different animal study them get to know them because it is the actual vehicle you are using to trade these things and if you can’t, at the very base level, understand what you’re using to trade you shouldn’t be trading with them, it’s totally irresponsible, not to know cfds! Like the back of your hand. It’s not sexy. I know that it’s not super fun to learn the ins and outs of these things, but you really don’t have a choice if you are going to double the returns of the burden made offs of the world someday, these are steps you just can’t skip and being a high-level professional trader means that you have to put your nose down and study everything, even the things that aren’t super fun to learn all right, so just make sure you’ve gotten to know these things before you step into these waters? So i will share my experiences with you on this market? Up until now, the things i have gathered in my kinda two plus years of playing around with these things and really my only first year that i’ve, really gotten good and competent at it is just know off the bat. Some of these things move a lot with super high, a trs for those of you don’t know what the atr is.

If you’re new i did a video on it, it is the best indicator in the whole wide world get to know it. It is super important, but we’re not talking about a dollar and thirty cents euro to the dollar. You know we’re not we’re not even talking you know, gold at fourteen hundred we’re talking about things like the dax that are like up into the 13, thousands all right. So, just on that alone, you are going to have movements that are way far and beyond anything. You have dealt with up until this point, so just be ready for that i, actually, i, normally demo with a fifty thousand dollar account? That is my standard! That’s what i always do actually i do, expand it, because there just wasn’t room to trade. These things it sounds weird, but if seriously try trading these things with a 50,000 dollar demo account! It is not easy. You probably need to go a little bigger, so hopefully i can save some of you some time there now. What was also really interesting is you guys know: i normally use fx trade, oh no wanda, to do most of my demo work and most of my teaching work and stuff like that and i was actually going to use it to show you a few things, but something happened i! no! If it was a wanda’s fault or not, it just happened there now andhe used to have a bad reputation for stop hunting? They have addressed it to a degree, i’m sure, i, don’t know if this was them, but i was in to index trades that were both doing really well. They were the only two traits i had open. I had taken profit on both i moved, my stop loss to break-even, and then they kept on running so the very next day i go in to check and see how they’re doing and if i need to make any adjustments and both of those trades had completely disappeared? I took a look and they had both been closed out? That was very strange because they were not anywhere near where my stop-loss was at no point in the day had they had gotten close to there and at no point in the day, as far as i saw had the spread gotten a lot of control, just i mean you really don’t know 100% what you’re dealing with until you demo it extensively all right. If this would have happened in real life, i would’ve taken quite a hit as far as why i probably would have lost in revenue now. If this was a losing trade.

What would that have looked like what could have happened there? you just don’t know i mean i’ve been trading for 10 years first time.

Anything like this has ever happened and it happened when i was trading indices. So you really don’t make a move until you have done extensive demo. Work on this i know it’s exciting! You know jump into these right away, especially while things are moving really good, but i’ll! Let you know in a little secret that we’re gonna talk about later. These things always move and they’re always going to move so you’re not missing out on anything. So you owe it to yourself to do it right, because you never know what little snafus and bugaboos can pop up while you’re trading and you’re gonna be really glad? It didn’t happen to a real account? I myself am still not even going to officially forward test this until the beginning of the year 2020, it is november 2019 as i make this video and that’s important, because there’s still some things i want to put together. There’s still, some mistakes may be yet to be made before i really start making this thing official. So take it from me? Go the slow route, be very careful experiment. Try a bunch of stuff back test a lot, because it’s going to take a lot of that here, maybe even more so than it did when you were doing it with metals or oil, or anything like that, and it’s because of all of these other variables that we have in place here variables, which we did not have with things like metals and oil. All right so just be careful? Now, my fellow americans don’t think i’ve left you out here, it’s i know: i lost some of you and we were talking about metals and oil, and things like that because it’s hard for americans to trade, those because americans aren’t officially allowed to trade with cfds.

There are some workarounds here, however! First off you can just find a way to trade cfds in general, like we talked about in the metals video! That is probably your best way, but you can also trade with etfs. Etf’s have come a long way for almost every major index out there. They have ets, which go long and etfs, which can go short and with most of them you can trade them at leverage?

Not super high leverage three times leverage and that’s something i mean the etf game has come a long way. I love them, i trade with them, and you can do it right from like a td ameritrade account, so you can absolutely be in the index trading game you just don’t you may not be able to do it with cfds and unless you have found a way around it, but this is not off-limits to you at all. Etfs are your way in here, but just like i said with cfds. If you’re going to use them, you need to learn the ins and outs of them. They don’t operate the same way.

Cfds do at all. They are a completely different animal onto themselves. Learn about them! there there’s a there is a actual book called etfs for dummies? It’s a really good book, i’ll, even link it down below in the description with no affiliate link, you can just go right. There we’re gonna talk about etfs in a future video as well? So if you want to get started on these, now might not be a really bad time, especially if you have aspirations of trading indices and you plan on living in the united states. Most of your life i mean why on earth would you pass up something where you can make ten twenty percent return your every year or even more, you know, get started in this any way you can now to the part! Most of you have been waiting for. How do we trade these things? how do we read them on a chart? how do we best determine where price is going to go? it’s useful information, but there again are variables at play here that we do not see much of in the other markets we trade?

So let’s talk about it. First off you have to get set up right now! You can really do this any way. You want i’m going to explain how i do it and give my recommendations and tell you why i feel this way, so, first off you’re, gonna notice, now we’re not having a talk about correlations, because you guys know how i feel about it? Avoid them at all costs, but a lot of these markets do run together, sometimes now in order to see what i really mean by this.

We’re gonna have to go to the charts alright. So here we are on blueberry markets mt4 now, for those of you who are not too familiar with the channel, blueberry markets and markets.

Com are two of my top recommendations for platforms?

Blueberry is the best pure forex trading platform in the world, and then markets comm is also very good. Just has a lot more other options, but blueberry has 10 cfds for you, two choose from so we’re gonna, look at some of those and then i’m going to show you a couple other ones that markets has the blueberry does not so we’re gonna stick on blueberry. For now this is the s&p 500 daily chart and obviously you’re not gonna, see a whole lot of difference between this and the nasdaq and the dow! They look very very similar, but they also look similar to the dax there’s a little deeper dip here, but that was it and the overall shape and price action is exactly the same! It was just a little more dramatic down here same as the cac little gap here, but really no different and believe it or not- and this doesn’t i- don’t see this happen too often, but the nikkei as well you’re, seeing it droop a little more now than some of the other markets are so it might be the first one in as far as shorts go, but even the nikkei is looking very similar to everything else! So what do you do in these situations? first of all realize that this whole every index running together thing doesn’t happen all the time.

So if i were to put this on the weekly, so i put the nikkei on the weekly! It looks like this! If i go over to the s&p weekly you’re, getting a bit of a different story, if i were to go to the dax weekly, definitely a different story right back to the nikkei, so overall in a zoomed out version, they do move differently when they move differently or even if they’re moving the same? I would still keep your exposure to two of these indexes and no more i know it might sound super cool to say that you, trade, the dow and the footsie and the dax and the spanish stock market, whatever that’s called the ibex i, think i, don’t know, but is more here, you’re already trading. All of these other instruments that we’ve talked about in the past. Why make it difficult on yourself you’re not really creating much of an advantage by trading more markets, so out of the american and european group i would just take the first two that give me a signal and if they’re running differently great now you still trade two if they’re running together, like we just saw with the daily charts, then in that case so france and germany here trade then the same way that i told you to trade, gold and silver because they run together a lot as well! If you don’t remember that or if you didn’t go, watch those videos- and that would be the time to do it- because it’s pretty important i, just don’t think you’re doing yourself any favors by adding a ton of indices to your overall trading for one they don’t all close at the same time of day! So now you have to keep track of that, that nice cushy lifestyle that we have built as no-nonsense forex traders only having to trade 15 to 20 minutes a day now, you’re cutting into that? You know you’re no longer saying that your time is as valuable as it once was, so be careful on that. Second and i just alluded to this before these things always move they rarely stagnate, especially on a daily chart!

Now, why is that? well, because you have professional institutions that trade, you have pension funds, hedge funds, all you know, retirement funds, all of these things that have to be in the market. They have to actively trade? They can’t just sit there.

The clients don’t want to do that, so you can bet an index trading has gotten so big lately, but there is always going to be move it in the smart, good, there’s gonna be a lot less sitting and waiting, and you were gonna, get ample opportunities to trade if you, even if you keep it down to only three or four pairs, so you can pick two at a time from the american for the north, american and european group. All right, then you might want to add something on from asia like the han sang. This is hong kong’s index and with all of the turmoil going on in hong kong? This thing still manages to give you opportunity after opportunity, i mean look at it. You had that run-up? You had this huge rundown. That was a bit of a disaster, but then you had this possibility! This really nice smooth possibility. Here you had this and now you have this, and this is with in a market with a ton of fundamentals behind it, which leads me to my next point write this down because it’s not on a slide. Apart from major elections, you can pretty much ignore fundamentals altogether when you trade indices, and that is freaking great. You know if the united states had a really bad and fp number.

For example, that’s gonna affect the market that day, but you are going to find more often than you won’t and that it is going to recover and or trade the direction it was meant to trade, not even two days later, sometimes the very next day. You know it has a very short memory when it comes to things that happen in the past. It’s all about the now. So on top of that, maybe you might also want to add the australian index, not as pretty as the hon saying right now, but definitely moves differently so and that that’s key here because you are gonna have to from the north american and european markets that move very similar a lot! So you want a couple things that move different now. If we move on to markets, calm i will show you two more!

If you sign up for markets that you might want to add on this one’s the nifty, this is india’s index. That does some different things, and this one actually is a good time for me to show you just how volatile these things are. This candle alone move, let’s see top to bottom, about seven thousand pips in one day so back to how to say about the atr! Be careful here. Protect yourself use, really good risk management, but i like the nifty i?

Think it’s a good one to add. If you can here is taiwan’s index a little trap here, but still you’d like to get a piece of that i’m sure and musel moose! What i’ve noticed is kind of step for step with the nikkei, but again not always, but you have a lot of options at your disposal here, find a good combination, but just don’t overdo it and if you guys are interested in blueberry markets or markets, calm i will link the video where i talk about that i’m extensively down below in the description as well. You definitely want to do your homework in that video. Does a lot of the homework for you, but all at all, keep it small vary it up a little bit, but just also know that these things are super volatile fundamentals, don’t matter which is great and you might run into situations where these things are closing at different times. So make sure you allow for that as well, so for the purpose of slides and for the purpose of your notes, even though i did touch on these points already go ahead and have them all up, but as far as the american and europeans go to only trade, a couple of those and then tack on, maybe to you know asian or oceanic indexes, and that’s really all you need no need to make it difficult here? No-nonsense, forex traders, already trade, 28 currency pairs for metals and oil i mean god. What more do you need, but those are my best tips in terms of getting yourself set up to trade, this market the right way! Now this part here! How do we trade it? i’m, not gonna, put the algorithm up again, but i. Don’t think i’ll need to this. These instructions will be very easy? Alright, so just remember these things move alright, so, given that they move a lot and there’s always volume already going on even when it seems like things are, consolidating is just a matter of time before it’s gonna move that really bad choppiness, you see with forex, for example, just doesn’t occur that often here and you’re gonna notice that so there’s lots of opportunity all the time, which is another good thing. That’s why you don’t need a bunch of these to trade, but what you’re gonna want to do trade it just like you, trade oil, so if you have forgotten or if you’re new go back to the oil video now, if you’re new i got bad news, if you want to know how to trade oil our way you kind of have to know d’être, metals, and if you want to know how to trade metals, you have to learn how to trade forex our way, the good news is you’re going to want to learn all those things anyway.

So just start the beginners video, which i’ll also link down below in the description, and just do that. Hopefully, i have piqued your interest at this point to where you are down with this channel and- and you can get started just like everybody else- has you’re really gonna want to people really enjoy this channel and they’re getting great results out of it? But for my no-nonsense, forex traders i want you to trade. This just like oil with one change? That’s right! why the hell? why there’s a dot dot, dot there and it’s a change, i think you’re really going to like! Given everything i just told you on this slide about indices, you don’t need a volume indicator. What do you need it for these things always move? we use volume indicators to keep us out of those choppy range-bound markets. You do not see those choppy range-bound markets anywhere here is often when you are trading indices, you’ll, see consolidation and that’s fine, but you won’t see that long chop that thing that just beats us over the head and gives us the majority of our losses! You don’t see it that often here so take advantage of that and take advantage of the fact that you don’t have to have a volume indicator anymore when you’re trading indices got it. Some in conclusion, add this to what you already have. Why would you not for every one of these you get good at and because you already have that background in forex and metals and oil? the learning curve here is tiny because of the background that most of you already have i think you can get equally as good at this as you can, with forex or with metals, and that is super, exciting tack it on and americans. You can do this too, maybe not in the traditional way, but you can certainly get on board with this. Do whatever you have to do to make it happen, because it is so worth it, but also whether you’re trading with cfds or etfs i mean it get to work, get to know those things as well as you can, because it is the actual vehicle you are using to trade these things and if something happens, and you can’t understand why it’s probably because you don’t understand what you are using to trade with.

It is an amateur mistake and it can cost you money for no reason? So don’t let it happen, but with indices, there’s no need to overdo them.

There’s me plenty of opportunity?

You don’t need to make things more difficult on yourself. You can really set this up and trade them any way you choose!

You don’t have to go my way, but i think my way makes a lot of sense. I. Think when you started trading indices, you didn’t really plan on trading only three or four of them, but i really think it’s the best way to go! I, don’t think i think you’re gaining a lot and you’re losing very little! So for those of you who are new and you i could hear, we have more videos coming up, we’re gonna talk about more things and more markets, so subscribe hit the belt- and if you like this video but you’re a little bit confused because you aren’t caught up like everybody else’s, go to that beginners, video and get caught up, it is the most fun you will ever have learning about trading! If you can get over my pigheadedness well, then the rest of its a breeze, but for the rest of you, you have more work on your plate.

Now, if i didn’t give you enough already with metals and oil, now you have a whole other ball of wax to deal with? That is unique to all the other balls of wax.

You already have right in front of you again? This is not going to happen overnight, but it doesn’t happen at all!

If you don’t put in the work and be relentless as you possibly can, all right go get it. ?