Short DAX at 7740

Quote from xty:

Asu... How does options expirys affects dax?
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I recall very volatile Option expiration days. Somtimes 100-150 points within minutes. Nowadays it´s more civilized. Seems, a lot of market particpants have "learned their lesson".
 
Quote from gangof4:

Asus:

another nice trade. would you mind indulging me as to how you handle your stops and trailing stops?

this trade was actually less volatile than many i've seen you in; where you've somehow ridden out really big bounces against you b4 reaching your target. still, in this trade, you'd have watched your 25 point gain turn to a small loss after 4 hours (it also temporarily broke the downtrend- something that would have blown me out of the trade with less than a 5 point gain).
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This trade was much less volatile, right. It was a slow motion trade. I have for every trade a stop loss in the market.
Let me tell you that my stop loss was not far away from the height of 4068.00 before we moved lower...

from there, it went beautifully for you. wondering though, once you took off some at 3964, where was your trailing stop? seems like you favour support and resist. levels, so seems that you wouldn't have been 'shaken out' until it broke above 3988, or even 4000. if so, you'd have left 1/2 your gains on the table.
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Trailing stops are always placed in conjunction with the observations that I made throughout the day. Sometimes it can be a 15 min SMA. Sometimes it can be a simple Fibonacci number. Sometimes it can be a "former" congestion area. Depends. There are no systemic rules in my trailing stop strategy - exept for one : I place them !

again, i ask because i've been trading the DAX for about 18 months and have not found a way to trade it beyond scalping (that's why i don't post my trades- there are too many, and it would clutter up your thread). the swings in the DAX have made it so that i get shook out or, when i get liberal with my stops and trails, i end up getting pummeled and/or 25 point gains become 20 point losses from the swings. so, i continue to scalp, but constantly lament not taking the longer term trades. of course, when i do, they end ugly. ergo, this rambling post...

thanks.
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Well, you have to decide yourself which trading methodology you prefer. FDAX scalping is a very dangerous one. The risk associated with scalping is that you need a lot of SCALPING IDEAS throughout the day - thus heightening your chance of failure.

My apporoach with regards to scalping is :

what´s the alternative ? Answer : Risk / Reward on a "longer trade".
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Quote from ASusilovic:

This trade was much less volatile, right. It was a slow motion trade. I have for every trade a stop loss in the market.
Let me tell you that my stop loss was not far away from the height of 4068.00 before we moved lower...



Trailing stops are always placed in conjunction with the observations that I made throughout the day. Sometimes it can be a 15 min SMA. Sometimes it can be a simple Fibonacci number. Sometimes it can be a "former" congestion area. Depends. There are no systemic rules in my trailing stop strategy - exept for one : I place them !



Well, you have to decide yourself which trading methodology you prefer. FDAX scalping is a very dangerous one. The risk associated with scalping is that you need a lot of SCALPING IDEAS throughout the day - thus heightening your chance of failure.

My apporoach with regards to scalping is :

what´s the alternative ? Answer : Risk / Reward on a "longer trade".
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thanks for taking the time to answer.

yeah, agree with your opinion on the dangers of DAX scalping- hence my desire to transition to more 'day trades'. you can have 8 great scalps and then one quick random woosh and you're red.

i come from 20+ years of making a living investing. i decided i wanted to mitigate event risk by transitioning to trading and being flat at the end of each day. about 2 years on, and what was WAY too 'easy' the first 16 months, has turned to a frustrating (and very expensive) past 6. hard to believe i went 3 months without a losing day and could count my losing days over nearly 6 months on one hand. clearly lost confidence is part of the vicious cycle when one takes some brutal beatings- mostly due to poor $ management.

trading and investing are so different. i immediately settled in scalping (to me that means anything from a minute to 1/2 hour or so), as trading like you do had me applying 'investing' thinking- which didn't work well.

i managed $ with a heavy use of TA and kinda threw that aside for trading- relying more on reading price action- something i've always been good at. you mentioning some technical indicators gives me kinda a 'duh' realization that i really need to add another layer onto my decision process- it'll probably help me make better entry and exit decisions.

i'll stfu now- didn't intend for this post to be so f-ing long.

thanks again...
 
Quote from ASusilovic:

I just remembered the start of this thread. Too funny : short FDAX 7740. :p :) :D
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yeah, you only missed calling the top by about 6 weeks/5%.

if you decide to call the bottom, you'll have to start a new thread!
 
Quote from gangof4:

yeah, you only missed calling the top by about 6 weeks/5%.

if you decide to call the bottom, you'll have to start a new thread!
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If so, I will name it :

"My very personal (FED) FDAX buying program !" :) :p :D
 
Quote from ASusilovic:

Maybe we´ll see 4169.00. USD selloff continues.
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yeah, i'm kinda getting that melt-up feel.

kinda hoping for it; as i think the fed $ printing hangover (oh shit, gold's @ 1100 in 2 days and teh dollar isn't worth dick) would give one hell of a pullback. of course, even it if comes, keeping to form, i would grab 20 DAX points and leave 300 on the table. sadly, WAY too much truth in that statement...
 
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