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FTSE + FTSE 250 - consider trading (FTSE)     

cynic - 20 Oct 2007 12:12

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

cynic - 23 Oct 2009 14:39 - 4502 of 21973

just to go back a few posts ...... playing the indices is arguably muh less risky than playing with individual stocks, for with FTSE (for example) you are effectively buying into a basket of 100 companies and the share price movement thereof.

for myself, i certainly only dabble gently, but with IG offering CFD contracts at 2 a point, and i am sure others are similar, one can be as brave or foolhardy or cautious as one wishes

cynic - 26 Oct 2009 16:01 - 4503 of 21973

things that go bump in the night, or even mid afternoon in this case ..... Dow was earlier +100 and is now and suddenly -100, for no published reason ..... "too far, too fast" syndrome?

jimmy b - 26 Oct 2009 16:22 - 4504 of 21973

Thats why its gambling playing indicies. Rest my case.

cynic - 26 Oct 2009 16:35 - 4505 of 21973

so is it buying/selling shares!!!
indices only rise/fall in line with the shares within them - there's nothing arcane about it!

jimmy b - 26 Oct 2009 16:48 - 4506 of 21973

I dont think its quite the same cynic ,,if you sat day after day trading the DOW/FTSE up and down ,i think it would be harder than investing in companies ,its more toss of a coin .Heads or tails.

cynic - 26 Oct 2009 16:58 - 4507 of 21973

FTSE100 (for example) is like a unit trust with a holding across those companies ..... de facto, FTSE is intrinsically less volatile than an individual company, and assuredly less so if your preference is to dabble in amoeba and minnows

if you're going to try to make money day trading, you're virtually a racing certainty to get immolated regardless of what you buy/sell

KEAYDIAN - 26 Oct 2009 17:09 - 4508 of 21973

I'd rather trade indices than shares

dealerdear - 26 Oct 2009 17:19 - 4509 of 21973

i've been 'immolated' whatever that means!

skinny - 26 Oct 2009 17:24 - 4510 of 21973

Apparently its the first album by the Polish death metal band - Dies Irae :-)

KEAYDIAN - 26 Oct 2009 17:25 - 4511 of 21973

:O)

cynic - 26 Oct 2009 17:27 - 4512 of 21973

DD - are you sure you don't mean molested?

dealerdear - 26 Oct 2009 17:35 - 4513 of 21973

yes please ...

;-)

HARRYCAT - 26 Oct 2009 17:35 - 4514 of 21973

My tuppence worth: Surely it's much easier to understand how & why an individual share is performing rather than trying to understand the complex issues of why a whole index is moving, particularly the FTSE100 which is heavily weighted with foreign companies?

cynic - 26 Oct 2009 17:49 - 4515 of 21973

indices are often more to do with momentum and chart patterns ...... i play with FTSE and Dow in a very modest way, but use the info i am given as a guide to what i may do in the wider market

HARRYCAT - 28 Oct 2009 16:08 - 4516 of 21973

A fairly substantial correction over the last two days, particularly on the FTSE250.
Just going to have to sit & brave it out, imo, with an eye to picking up some stocks at lower prices. Many seem top have dropped below their 25DMA with hopeful support at the 200DMA.

cynic - 28 Oct 2009 18:43 - 4517 of 21973

Dow now -91, so unless a late recovery, things looking very gruesome for tomorrow ahead of US GDP numbers

cynic - 28 Oct 2009 20:36 - 4518 of 21973

i am advised that if FTSE falls through 4950 and/or Dow through 9650, then watch out.
conversely, i guess one could argue that either/both indices should bounce from those levels too, or from a bit above them

jimmy b - 28 Oct 2009 22:53 - 4519 of 21973

Is this going to be like March ? ,i'll be surprised if it is ,,is this just a pullback ? Only holding 2 stocks myself....

KEAYDIAN - 29 Oct 2009 08:36 - 4520 of 21973

What happened in March?

skinny - 29 Oct 2009 08:40 - 4521 of 21973

Chart.aspx?Provider=EODIntra&Code=MCX&Si
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