Exactly.Any potential scalpers out there should read the thread 'Dax plunged 200+ ticks' .Handy if you've got a bid in which you'd be happy to make 3-4 ticks on that goes 200 ticks off-side as you get them.A bid for 20 lots equals 100,000 Euros down.The Dax is one of the most brutal markets around and while it can be scalped as there is obviously great liquidity and wild volatility very few succeed.
One thing I don't understand: why do you call the DAX future liquid while the EuroStoxx 50 future (which has obviously no drawbacks compared to the DAX) is 5 to 10 times more liquid (based on the monthly volume)?
If you look at the Euro value of contracts traded today (roughly calculated), you'll find that the Dax did about 37 billion Euros nominal value whilst the Eurostoxx did about 55 billion - the Dax is 2/3 of the Eurostoxx. If you adjust the order book for volatility then you can do some serious stuff in Dax. However, you do get a few ticks slippage on bigger size. And obviously it's very thin before numbers.
What has the liquidity of the EuroStoxx got to do with my post? I've been pointing out the pitfalls of scalping DAX(and I could go on).There is more size on bid/offer and better volumes in EuroStoxx.Everyone knows this.Just because EuroStoxx is 5 to 10 times more liquid does that make the DAX illiquid?
The Fdax is great but very dangerous. If you forget it, it will brutally remind you of it. I lost $15000 on monday on a sudden drop with big averaging down.
I would have to agree that you'd want to be ultra careful on the Dax - it's a great trading market you just better have a solid strategy and be ready to get hit at times. Lately it seems to not be as forgiving as it was for a few months but it changes periodically. I find the EUroStoxx is a good place to "practice" your Dax strategy on - it's less painful if it's not good. Bund would be my other choice as stated above. Great volume, not quite as hyper as the others though maybe that means it's boring to some I don't know. I think day trades is way to go on these. THink I'd be afraid to swing trade 'em.
I trade mainly the ES future but i watch the eurostoxx in parallel. I used to trade the stoxx future also, but i have stopped recently since its nowhere near as volatile as the ES lately. If the stoxx is moving quick the ES will be moving with it just as fast most of the time, but if the ES moves sharply the stoxx often hardly moves at all. It is very liquid, similar to ES with a very thick order book and big vol. I would not recommend it for scalping as it has had poor volatilty lately. Stick to DAX if you want euro, or stick to ES if you want a less 'choppy' but still volatile future that u can trade big size with no probs.
Firstly I am very sorry to hear about the loss, I wish you all the best in your future efforts if you decide to make it back. Secondly, you set your own trap by averaging down, if you are on the budget you simply do not do that, it's unpractical & bad money management. Your own bias is worthless unless you see your bias beeing backed in a chart. I have also lost a lot of $k when I started out, that was a great lesson and I am happy in a way that it took place when it did. People DO NOT AVERAGE DOWN!!!!
But surely scalping and trading off of charts are two different styles?This is where scalping the DAX presents more opportunities to lose money.With charting you can have your in-trade and two pre-determined exit prices,one for a profit the other for a loss.With high turnover intraday scalping for a tick here and there it is too easy to average with awful trades and take small profits on the good ones and the DAX of all the markets will crucify this strategy.