Short DAX at 7740

Discussion in 'Index Futures' started by ASusilovic, May 23, 2007.

  1. so what happens to your resting orders if price jumps your stop loss and/or limit target orders?
     
    #2371     Jan 22, 2008
  2. A bear mkt is officially defined as a 20% fall from a previous peak,
    such
    as was
    seen in the DAX this morning at 6,500
    However, by looking at the 9 bear markets we have seen since April
    1970,
    and
    using the DAX as our model, it is possible to see that mkts continue
    very
    poorly
    after entering a bear phase. In fact it is an average of 10 months and
    minus
    25% of performance until the bottom is achieved. See below

    Date of entry into bear No. of months til bottom Index move
    to bottom
    Apr 1970 19 -19.0%
    July 1973 16 -18.6%
    July 1986 19 -26.0%
    Oct 1987 3 -22.0%
    Aug 1990 5 -15.0%
    Oct 1992 0 0.0%
    Aug 1998 1 -19.0%
    Mar 2001 24 -63.0%
     
    #2372     Jan 22, 2008
  3. asap

    asap


    correct. they were using steriods to increase their leverage beyond imagination. they're like those bucket shops that offer 400:1 margin and advertise it as the holy grail to became millionaire in a couple of days. wtg us bankers.
     
    #2373     Jan 22, 2008
  4. RedDuke

    RedDuke

    They will be triggered depnding on what type of orders they are.

    These moves today of 100s of points within minutes (there was around 150 points move within 5 minutes) make me want to trade so badly, but it is against my rules to trade when book is so thin and spread is unreasonable, so I am on side lines salivating.
     
    #2374     Jan 22, 2008
  5. Thanks,
    let me just clarify this,
    so if it jumps a target limit order, it will be filled at the limit?
    A stop order (which should be native, right?) will be filled at (stop) market?

    So stop orders or limit orders don't have to be traded thru/ touched?
     
    #2375     Jan 22, 2008
  6. JSSPMK

    JSSPMK

    Same here, I am staying away today :)
     
    #2376     Jan 22, 2008
  7. So sell Volatility, or ? ! :p
     
    #2377     Jan 22, 2008
  8. RedDuke

    RedDuke

    I am not sure about stop limits since I do not use them. I have mine as stop market orders, so it always gets me out sometimes with small slippage. Obviously on days like today you can easily get killed with market orders.

    I would guess that if you have stop limit on exchange, and the price trades through it, you might still be in position.

    Also some exchanges do not even support stop market, what they do instead is stop limit with very large brackets, so it acts like stop market.

    This morning was incredible to watch, and I guess for brave ones to trade.

    Regards,
    redduke
     
    #2378     Jan 22, 2008
  9. baron193

    baron193

    It makes me feel inadequate and frustrated, to watch all these points go by, and not a single one is mine :)
    At the opening, after the initial drop and the very small consolidation, i had my finger on the button to sell, but somehow failed to press it...that went on for two hours....
    Fibs, pivot points, oscilators and S/R have worked the same as any other time...just a LOT faster and with huge ranges....
    one of you mentioned salivating...i had to put a bucket under my chair:D
    Does that show trading inmaturity, or is it something that most of you expirienced traders went through as well ?
     
    #2379     Jan 22, 2008
  10. RedDuke

    RedDuke

    Hi Baron193,

    I would say it shows maturity. All these moves looked great onn charts, but reality is a bit different. The speed, spread and slipage could have killed positions before they went into green. The only way to trade intra day on such days is to increase size of stop loss by a lot, but as we all know it can easily play both ways.

    Markets will be here tomorrow and the following day. We are here to trade amd make $ consistantly, and staying out on days like these is the right thing for most of us.

    Regards,
    redduke
     
    #2380     Jan 22, 2008