[RobinHood]

I've heard that one should specialize in an instrument or group of instruments which suit ones personality.

Right now I'm watching the Hang Seng, Bund/Bobl/Schatz, SPI and sometimes the ES and DAX.

I'm not to sure which one "suits my personality" and on what I should specialize or whether scalping is even my style.


I was curious about those of you who feel you are in your niche,

what attracted you to your product/style?
was it the volatility of the instrument, the volume, the order book depth?

or did you just decide to stick one instrument and found it began suiting you once you started making money?

[brownsfan019]

That's a great question.

Personally, I started in stocks moved to options and then found futures. From there it was a matter of personal preference. Currently I'm doing most trades on the Stoxx simply b/c commissions are lower and my stops seem to hold better there. Still watching the good ole ES, but I'm getting more bang for my buck on the Stoxx.

Once you decide on futures, I think it's a personal thing. The ER2 is known to offer some wild rides while the YM may put others to sleep. The CL is a bucking bronco while bonds can be like watching paint dry... All futures, but all very different animals.

[Kiwi]

So given your timezone ... does that mean your trading stoxx during dow times? You are actually trading the tail not the dog?

Thats an interesting way of avoiding shakeouts. Clever, if thats what you are doing. How's depth?


I used to trade Bund and Eurofx but it was in my evening so I started trading HSI when I became aware of it. Back then 190 points was a big day. I liked the trendiness and technical readability. Its also very exciting and the opening times suited me. In August last year some big swinging dicks from Shanghai started trading it and really screwed my pooch. So I gave it up.

Now I trade SPI for an hour or so after opening and SPI and STW for the closing two hours of the day. The first hour of SPI gives good technical moves. Then I take lunch. Then the last two hours of both usually offer me a few good pullbacks to take some points.

I am expecting volatility in all markets to decline soon (how soon I don't know) and will probably move back to HSI if that happens as SPI and STW will drop to until their daily ranges are too low for me.

[RobinHood]

Depth on the fixed income is okay. The book is thick but not really as thick as I remember it when I watched it from the morning session. It indeed can be like watching the paint dry.

The reason I'm trading these hours was not related to any strategic thinking on my part. I simply work nightshifts and so my hours can be pretty crazy.

Sometimes I will get back home 1am, which is 3pm in CET. I don't know if that makes it easier to trade as I'm missing lots of early bond action, unless there are some important US action or announcements. If I'm not tired I'll go on strong to early morning and watch US markets.

When I wake up I catch the Hang Seng & SPI and then go to work (like now).


I think based on what you guys said I would be choosing to concentrate on fixed income. Good tick size. I can trade it. It is complicated and I have to watch other markets. Sometimes it has moments of violence which are exciting. You can do massive volume when you become proficient. Downside is most of the time it will bore you to death, just seeing it up one tick, down one tick for 5 min.

[RobinHood]

Some further thinking today has convinced me that I should actually concentrate on the HSI for the following reasons:


My shifts are soon going to become permanent night so I will miss the European markets entirely. (If I want to deal poker, then there is nothing I can do about this).
HSI is exciting and one of the markets I seem to be able to get in tune with

The downside is that I can only trade it when I turn 21, and that is a problem since sim & real execution difference is apparently huge on the HSI. (I'll be using MHI of coarse).

[brownsfan019]

Originally Posted by Kiwi »

So given your timezone ... does that mean your trading stoxx during dow times? You are actually trading the tail not the dog?

Thats an interesting way of avoiding shakeouts. Clever, if thats what you are doing. How's depth?

The volume and depth on the Stoxx till about Noon EST is really nice. Very thick and liquid.

I'm mainly trading the stoxx till Noon EST (if not earlier) and then done for the day.

[MidKnight]

My experience on the stoxx was that the liquidity was good until the cash closed, which is basically around noon EST.

[HAKUNA]

Originally Posted by brownsfan019 »

That's a great question.

Personally, I started in stocks moved to options and then found futures. From there it was a matter of personal preference. Currently I'm doing most trades on the Stoxx simply b/c commissions are lower and my stops seem to hold better there. Still watching the good ole ES, but I'm getting more bang for my buck on the Stoxx.

Once you decide on futures, I think it's a personal thing. The ER2 is known to offer some wild rides while the YM may put others to sleep. The CL is a bucking bronco while bonds can be like watching paint dry... All futures, but all very different animals.

Regarding Stoxx , presume this is the index for the 50 largest companies in Europe,
1. what timeframes to do you employ
2. Also what are your trading hours, as the markets I believe are open for 13hours.
3. Do you find liquidity adequate and if you use market orders, is there much slippage.
4. Are the price moves smooth or erratic and volatile ie. spikey