Trading the Dow Jones Industrial Index

As I already explained in my last post, I trade a mixture of different trading styles.

I look at the chart and mark the Alltime High, Daily High, Daily Low, Open Level and US Open Level.

I mostly have an opinion of what I think the market will do.

Mostly, I was wrong so I try to become as flexible as possible.

I watch out for resistance or support levels and make up my trading setup.

This means I will go long (buy the market) or I will go short (sell the market).

Sometimes, it may also be as logical to go short instead of going long or vice versa.

Anyway, I decide to buy or to sell.

When the market moves in my direction, I am glad and try to set the stop as fast as possible to entry level.

When the market moves in the opposite direction, I wait until the trade is ended with reaching my stop level or I even end the trade manually (market).

Sometimes, I turn around and buy or sell in the direction of the market.

Sometimes, I do the same trade in the same direction again.

I want to point out that I am not right very often. It is more a trial and error thing, trying to find the direction the market wants to take.

I always have a stop level with every trade.

I am very often stopped out.

The idea is to make more money with the successful trades than loosing with the ended trades. This is why money management is so important.

I have a defined starting risk of 50 Euros per trade.

The leverage of the trade depends on how far the stop is set from entry level.

When I set a 50-point-stop, I can only buy or sell one lot (i.e. 1 point movement equals 1 Euro profit or loss).

When I can do with a 10-point-stop, I can buy or sell 5 lots (i.e. 1 point movement equals 5 Euros profit or loss).

My maximum trading size in this trade was 4 CFDs  which equals around 16 lots (i.e. 1 point movement equals 16 Euros profit or loss).

This topic is continued here: Long Trade in the Dow Jones Industrial cash index

Here is a long trade in the Dow Jones Industrial future:

Time Symbol Type Direction Volume Price Profit
2017.11.27 14:05:12 UsaIndDec17 buy in 0.10 23508 0.00
2017.11.27 15:07:50 UsaIndDec17 buy in 0.10 23522 0.00
2017.11.27 15:30:08 UsaIndDec17 buy in 0.50 23537 0.00
2017.11.27 15:30:27 UsaIndDec17 buy in 0.50 23533 0.00
2017.11.27 15:31:03 UsaIndDec17 buy in 0.50 23531 0.00
2017.11.27 15:31:12 UsaIndDec17 buy in 0.50 23525 0.00
2017.11.27 15:31:30 UsaIndDec17 buy in 0.30 23526 0.00
2017.11.27 15:33:43 UsaIndDec17 buy in 0.50 23525 0.00
2017.11.27 15:34:10 UsaIndDec17 buy in 0.50 23520 0.00
2017.11.27 15:35:35 UsaIndDec17 buy in 0.50 23525 0.00
2017.11.27 15:42:16 UsaIndDec17 sell out 3.50 23547 290.13
2017.11.27 15:46:02 UsaIndDec17 sell out 0.40 23559 53.29
2017.11.27 15:52:24 UsaIndDec17 sell out 0.09 23580 19.90
2017.11.28 15:27:16 UsaIndDec17 sell in/out 0.50 23621 3.95


Here you can see the chart:

After the trade is over, everything looks clear and easy.

The difficult thing is to increase the leverage in the right moment and to stay relaxed even when the market turns against you:

At the end, I sold 3.5 CFDs at the red line:

I kept 0.5 CFDs and sold 0.4 CFDs at 23559, 10 points below the ATH 23569:

I sold the next 0.09 CFDs 30 points above the ATH:

I kept the 0.01 CFD as a balance to the 0.01 CFD of the cash index, and sold it at 23621:

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