For dabblers, look at this, it's one of the reproducible plays. It's a bit long winded but I tried to cover the yes-buts.
@Pauhow ,
@kingandy2nd @Arbu
The uk/European market opens at 8 am.
You CAN get an idea of how things are going to go from Bloomberg Youtube TV, which has been watching the asian etc markets overnight.
Very often one or many of the index markets in Europe, will set off upwards (or downwards, which you can also use).
That's lkely to be in Euros, so you need a platform which handles forex charges sensibly.
Trading212 can do that, two ways, but I'll only refer to the relevant one here.
Now, the move will not be a big %, but using standard Leveraging, which you get in a CFD account, you have "leverage" . You need £1000 to "use" £20,000 of shares in the index. It's 5%, or 20:1. The £1000 is called the"margin"
Or, you can say that if the index moves 1%, your gain is 20%
You look around the indices early on. Spain has been doing well, but often it's France or Germany.
This morning:, the DAX (German index)
View attachment 398100
The Net Volume indicator, underneath, shows that the money flow was at High for an extended period. Good for confidence.
Those are 5 minute candles. If you use the 1 minute ones, you have to hold your nerve for a minute of two, twitches happen in any rise.
You need to look at more than one timeframe, for any trade.
The rise started at 8am, there were a couple of twitches, only one of which shows on this chart , with the single tiny red candle at 9:00.
The indicator wason th eup again, so easy to be confident hold.
Suppose it had gone against me? Well, the indicator wouldn't have shown what it does, but you cold have lost a small amount. The point is you don't hold on "just to see".
I started with a small amount, adding when the indicator was clear. Several of the european indices were going up together, that's an additional confidence-giver.
You have to use an amount small enough that if the worst happened, you'd have a high probablility of catching it before you lost too much. That's not exaclty a chance gamble, it's weighted, a balance of probabilities.
using numbers, you might lose "1" unit of money, where the anticipated gain if things go as normal, would be "10".
So you can afford to lose 2-3 times.
This morning, I got up to £10,000 of margin. If I hadn't been feeling a bit down it might have been 10x that. I put most on at a quick dips in the saw-tooth of the movements. It develops a rhythm.
If it had dipped in a way that I didn't like, I'd still have been up, from where it started at the bottom.
One tends to do that, get out too early. One never gets it right. Not to worry. A gain is a gain - if I'd held on I could have got more.
If it had gone wrong early, I could have lost maybe £100-£200,, after that I would have been up if only a small amount. A once-in-100-times drop, might have cost me £500.
I "closed" about at the red line, so the price was up overall , 0.5%. But the gain is 20x that, so 10% of the margin.
Buying on the bottoms of the sawtooth, helps.
So that's £1k up, in about an hour.
That's a trade which would work, with those ducks aligned, say once a week. Sometimes, every day for a while.
The the overnight "mood", the time of day, other indices, the indicator, and whatever it was Bloomberg said about why things were rising.
Try it with a paper account.
With Trading212, you pay the fx fee, on the gain/loss (£1000) only, at 0.3%.
Sometimes there's something like a developing defence spending increase after a general announcement. Then you watch and listen more attentively. The market rise can be 3%..., and you put more margin...
www.bhf.org.uk
