rather than pick out individual stocks to trade, it can often be worthwhile to trade the indices themselves, especially in times of high volatility.

for those so inclined, i attach below charts for FTSE and FTSE 250, though one might equally be tempted to trade Dow or S&P, which is significantly broader in its coverage, or even NASDAQ

for ease of reading, i have attached 1 year and 3 month charts in each instance

I went shoty on the Dow last night just before the close at 12995 - andleft it open overnight. Just taken profits.

Although I feel this has further to fall - it was stubbornly moving upward and eroding my profit. Will look again later.

Morning

I'm finding it hard this morning to see the direction of FTSE, what to do ? looking at dow,dax and cac I would be looking for a higher open. Will we see 6300 today ? "maybe" but if the ftse gets close then reverses I will try and place a short.

Well thats the plan at the moment.

Good Luck............

i feel much hinges on Dow where 13000/13050 has proved a very stubborn resistance ..... if dabbling, a very close eye or pretty tight stop losses are the order of the day

I came across this from another site, showing the last 10 days volume on the DOW out of the first 94 trading days of this year, with 1 = highest volume and 94 = lowest.

15/05/2008 63
14/05/2008 53
13/05/2008 51
12/05/2008 92
9/05/2008 86
8/05/2008 64
7/05/2008 47
6/05/2008 56
5/05/2008 91
2/05/2008 54


Conclusion could be rally has no legs as it struggles up suckers hill ?

Well I decided to go long on the FTSE at 6260 and have just moved my SL up to 6270

Out at 6345 - maybe too soon - but decided to bank my profit - better safe thanb sorry

Well played bhunt1910.

Long again at 6330? Not sure about this one - maybe I am being greedy now?

out again at 6342

sitting on my hands for the moment - probably the best thing for me to do as i get so involved - not good

Goldman Sachs have just lifted their oil price estimation for the second half from $107 to $141 per barrel.....that's a big increase in my book !

Good trading bhunt, fortunately I never got my short away. Strangly my trading system was indicating a long first thing, but I ignored it.

I feel a new rule needs to be written. "Have faith in trading system, place position with stops then walk away" Well three rules then.

Gone long again at 6325 !!

ouch - out at 6316 - thought I had survived the first wave - but got caught by the second wave.

one too many I think

Just had a little flutter on the dow - lost out there too - too volatile - just blasted through my sl

bhunt1810,

You need to chill a little. I used to do what you are doing a lot. Now I have 2 different strategies:

a) Get ready to go long or short on the FTSE when the Dow opens up... sometimes you can really pick up a good swing here, but only go for it if it is clear that the American markets are going one way or the other.... sometimes the FTSE can be a bit lagged.

b) Or I look to go long or short on new highs or lows respectively.... when I say new I am normally referring to the last 5 days.

I always set a stop loss that has some room to breath! (normally 20 points) As soon as I can break even I move my stop loss to this point.

Recently I have been trying to run my profits for longer

Thanks Tonker - I think you are right - I got stopped out 3 times this afternoon because I set the stop too tight - and I could not monitor it very actively.

This morning was fun and I made some money - but I gave it all back on the dow this afternoon. Still learning - thanks for advice.

Dow looks like it will end the day positive. I went short when it was -91 - but set my stop loss too tight and missed the run up this afternoon.

nevermind - taking the missus to barcelona for the weekend for our anniversary - so will chill out for a few days

hope you don't get gored ..... just enjoy yourslef in the massive market in Ramblas

Cynic,

Do you think that the market is a little over valued at the moment... What are your ideas on this?

not sure, but the markets on both sides of the pond seem of a mind to go ahead ..... if Dow can break through and hold above 13000/13050, then there could be plenty more upside ..... however, nothing goes up in a straight line.

for myself, i do not currently have any open index positions, but am arguably o'weight in (quality!) miners and oilies