After two consecutive days of losing money trying to trade U.S. index CFDs, I think I've learned at least four important lessons:
First, attempting to scalp the major U.S. indices is extremely labor intensive. One cannot relax for a single second. For example, after working diligently to manage a $164.14 gain from a DJIND long position trading using a position size of 0.05 lots, I was immediately handed a $425.88 loss buy a single candlestick as the index suddenly turned around and headed the other way.
Second, optimizing one's chances of avoiding costly reversals like the one just mentioned (given the characteristics and nature on index futures price action) is going to require entering and exiting positions pretty much at the top and bottom of any given intraday trend. But, even this is not going to be foolproof due to the dramatic and radical nature of so many index futures changes in sentiment.
Third, identifying the tops and bottom of intraday trends might be best accomplished using a 23-minute baseline as confirmed by the consensus moving averages AND/OR the eight- and/or two-day temporal support or resistance level.
And finally, if I were to begin live trading index futures CFDs (which I can presently do only in demo mode since it is not legally permitted in the USA), I would have to do so at the exclusion of trading foreign currency pairs, at least on the same platform, seeing as how the performance results of the former dwarfs that of the latter to such a degree as to render it virtually imperceptible on a line graph.
First, attempting to scalp the major U.S. indices is extremely labor intensive. One cannot relax for a single second. For example, after working diligently to manage a $164.14 gain from a DJIND long position trading using a position size of 0.05 lots, I was immediately handed a $425.88 loss buy a single candlestick as the index suddenly turned around and headed the other way.
Second, optimizing one's chances of avoiding costly reversals like the one just mentioned (given the characteristics and nature on index futures price action) is going to require entering and exiting positions pretty much at the top and bottom of any given intraday trend. But, even this is not going to be foolproof due to the dramatic and radical nature of so many index futures changes in sentiment.
Third, identifying the tops and bottom of intraday trends might be best accomplished using a 23-minute baseline as confirmed by the consensus moving averages AND/OR the eight- and/or two-day temporal support or resistance level.
And finally, if I were to begin live trading index futures CFDs (which I can presently do only in demo mode since it is not legally permitted in the USA), I would have to do so at the exclusion of trading foreign currency pairs, at least on the same platform, seeing as how the performance results of the former dwarfs that of the latter to such a degree as to render it virtually imperceptible on a line graph.