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

as it is geared, the % gain or loss is significantly magnified .... with CFDs, and i think SBs are similar, the margin required is usually only 10% of the underlying stock .... thus, if you have 50k, you could theoretically buy 500k of stock

Of course, but you need to be ready for the dreaded margin call if things go badly wrong??? Don't worry, I will do plenty of research before committing & try the trial trading platform first.
Nice to see both the FTSE & the DOW finishing in the blue on a friday.

i am not convinced Dow will keep its head above water, but then i did not expect to see it +134 at opening either!

Hi Harrycat

Hopefully you shouldn't ever receive a margin call if you use sensible stop/losses, and only place trades where the most you could lose would be no more than 10% of the money depositd with your provider.

Have a look at www.iii.co.uk/investment/detail?display=discussion&code=cotn:UKX.L&it=li
this is a thread like this one for the FTSE, and have a look back at some threads, I have learnt alot from here.

PS...... someone posts using the name BONGOMAN he seems very switched on.

Good luck.........

No trading for me today, the sun is out so I'm off to play Golf.

Would expect FTSE to mainly be up today, I can't see it giving up gains below 6400, with 6500 a resistance level. I think the markets are just ignoring all the negatives at the moment, but would only expect this to last upto the 11th Dec for the feds interest announcement.

Good luck folk's..........

hope your golf is better than your prognostication .... looking quite to very likley that both indices will be down, perrhaps quite sharply

Fair point

Golf was better thankfully for three holes then the heaven's opened and we walked off.

Just as well I wasn't in trading, but looking at the chart I definitely maybe wouldn't have taken a position.

wimp!

I admit it, only a fair weather Golfer. Forecast better Tuesday and Wednesday.

market is looking very uncomfortable, with Dow indicating to open below the psychologically important 13000 level.

on the other hand, it is beginning to look once more as if BoE just might cut interest rates next time around (when is that due?)

yet Dow has arguably already factored in a Fed cut of 0.5% on 11th December ...... such a cut would be both good and bad news

My portfolio now ahead of where it was before the credit crunch problems came to light, and when the market was pushing 6800

as a precaution, i am currently (moderately) short Dow

cynic - below 13000 ? 13280 on the spreadbetters at present.

P'raps a tidge too much of the '96 plonk, cynic? ;)

cash indicator is currently 13289 ..... but its 250 or a bit below that that could prove a nasty trigger

there's prob quite a lot of money to be made in the markets at the mo, primarily on a short tack - e.g. NRK, AL. or even RTN and SOLA...... however it is still quite a brave call in that the markets can suddenly reverse.

in some ways, the indices are an easier call provided you can watch like a hawk

Dow trying very hard to hold 13250, so keep your fingers crossed .... have actually closed my short for a little profit

Missed the action today, played Golf in the sun.
I was waiting to short FTSE at 6340, but it never recovered to this before I went out.

BOE are due to report interest decision midday this Thursday, I saw an interveiw with chairman of ECB who said it was unlikely that they would cut rates, and most articles I have read seem to think the BOE won't cut either.

Thursday could be a very important day for financials with the RBS trading update due, anything worse than 2B write off's would have a very negative impact.

Dow is very quiet and dull, though in some ways that is no bad thing .... would have liked to see index finish above 13000 but i doubt that will come to pass .... just hope there is no last minute sell-off

Rate cut in Jan, me thinks, BOE doesn't want to encourage extra festive spending if they can help it... also should be a good time for a drop to support house prices as Christmas will be forgotten by then...