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

For people reading this thread and thinking of trading indices, remember the trend is your friend, don't go against it unless you have a very good reason to. I started using CFDs last November, and over traded a bit, I was too eager to take positions, only small ones so no harm done. I didn't trade for 5 weeks, and just studied the indices, now I only trade ocassionally.

A good analogy is this. Never place a trade unless you have a reason, pretend you are using Mafia Money, and when they are going to ask you Why? did you make the trade. - you better have good answer.

Spitfire - thanks - I like that analogy - only in my case I have to answer to the missus - much worse than the mafia !!

Q
What is the difference between a terrorist and a wife?

A
You can negotiate with a terrorist

to keep you all awake .....

Investors also eyed a surprise jump in weekly jobless claims ahead of Friday's more closely-watched Jan. employment report.

The Dow currently brushing aside somewhat, although can change in an instant, i couldn't resist having a play and went long an hour ago on FTSE, closed already for 42 point gain...

my goodness - we are blue ??

,,,,,and now wall st is blue too

FTSE should end today where it started, am surprised to see that Amex is up today on the Dow.... My bet is the DOW does the same, so now looking for either an upwards or downwards spike and betting back to todays starting price 12442.


Longer term I think well see the DOW rise to find support at 12785 this was Feb '06 top, Aug '07 bottom, Nov '07 bottom and resistence point early Jan '08 on initial falls, 12785 approx or in the range of 12770 - 12790. Of course this is provided no more interest rate cuts causing high volitility... Just IMHO but need to at least have an idea of whats going to happen before trading otherwise might aswell bank it in an iSA.

Spitfire post 835, very well said in not going against the thread.. I have said before that I trade without stoploss on indicies in time of volitality, when doing this I am always at my screen and able to close my position at the click of a mouse. I also run 1 minute charts so I can see the trend.

would not disagree with 12785 .... certainly a break with impetus and held above that level would be needed to break the downtrend

but very difficult markets indeed ..... opened a very modest Dow long (with guaranteed stop!) and it is now 250 points to the good ..... almost needless to say, i have been moving my stop too.

Well done Cynic, I think we'll see the DOW fall back now, just stretching its legs I think.

quite possibly ...... if i was that certain, or even less uncertain, would not have spent the extra to have a guaranteed stop

Easy for me to say right now as have no open positions. Will be back online in about an hour through to the US close... I know my confidence will take a beating then... Anyway must say a big well done to Big Ted making a profit on his first CFD, hopefully more of those to come...

my long just shut out at 12495 with near enough 200 point gain, so certainly no complaints ...... only a modest stake, so sure won't pay off the mortgage, but will more than pay for Valentine's Night dinner with "'er indoors"

and to think i opened one by mistake at 12266 earlier, sheeesh...!!!

explosive - I take your point about not using a stop/loss in volatile markets, but I can't stand starring at a screen too long, It's also no good for my nerves, so I like to use them and limit prices so I can do something else.

bhunt1910 - Sorry to hear about the missus, sounds scary

Each to their own Spitfire, when I play the equities I set stop losses so not as though I do it often. Just makes the point for any newbees reading the thread.

Does anyone also play the markets online at Ladbrokes, for large moves you can odds of 28/1 and the only risk is your stake. You can bet 5mins, 1hr or daily move. I've had some very good wins on Ladbrokes and have to date withdraw much more than I've ever paid in.

Slow night on Wall st, buy 12569 sold 12589 for 20 points, mind you 20 points in 15 minutes, moderate bet easily covers the weeks shopping. Looks to be pushing up considering open trade to 12270.

Wall st again back in 12559 buy, 12599 sell another 40 points since last post, moderate bet again..!!