Traders who have been dealing on the STOCK MARKET for a number of years, no doubt would tell you that if you are Day Trading you need to have a volatile market, so you can have as many profitable positions opened and closed in a short space of time as possible - ideally in a day! -- This is more so when you are using CFDs as a means to beat the markets - and oh boy has the DOW been volatile for the past couple of trading days .... you bet ....!
Despite, the profit warnings from two of the Dow's components Wal-Mart (WMT) and Home Depot (HD), with the help of a weaker inflation report, the CPI, the Dow looked unstoppable in the first half of trading yesterday and the US main index was up by 140 points at one stage - but later on in the day most of the gain evaporated and this agile Index ended the session up just 37 points on the day at 13,383 - still a record high - today, the mad fellow was at it again, after a gain of some 55 points earlier on, it went to a minus 20 points and up again to close the session at yet another record high of 13487 to give a lift of +103 and a great gift to the bulls.
As regards my own CFD positions - I managed to get a few nice points to pay for my corns - scalped the ASX200 as well, which I really enjoy trading at times (when the odds are right) - NOTE: be very cautious with this Australian Index, it is a very tricky instrument if you don't know how to trade it.
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2 comments:
I tend to agree with you in saying how mad the Dow is in the way it suddenly changes directions - I trade it often and using my own system so far I am showing good profit.
That's great Tim that you've been showing profits on trading the Dow - when I trade it I try to keep my stakes to absolute minimum as I know how the old beast can bite suddenly :-)
Good trading.
Rod
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