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Old 01-03-2008, 07:03 PM
smwinc smwinc is offline
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Re: What to trade?

Depends on what you like to trade. Check out the DAX, or the Bund (GBL). I trade the DAX, but am exploring moving into the Bund (GBL) this year.

If you are used to trading the US markets, the DAX should feel relatively familiar to you. As Namstrader mentioned, in the short-term there is often a strong (positive) relationship to US equities.

In scalping the DAX, I trade from 3:00EST onwards. The DAX opens at 2:00EST, and has to digest what has happened since 16:00EST the previous day. I like to see a range develop, before moving in at 3:00EST on the normal open.

I find it useful to keep an eye on: ES, ESTX50, US Treasury Bonds, Bund (GBL), EUR/USD, JPY/USD. I'm only ever after a few ticks, so it is mainly price action off S&R.

If you don't like the DAX, look into the Bund. The common reasons someone wouldn't like trading the DAX (spread, liquidity, ease of manipulation) are mitigated in the Bund. Unless your Warren Buffet, you shouldn't struggle with liquidity in the Bund.

Finally, just remember to check out the contract specifications and really take the time to watch how they move. Both of these markets can absolutely blow your head off if you're not careful.

SMW

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