Despite my last email about the DOW and what a bad instrument it is to trade, I just could not keep my eyes off it. Watching the DOW move is addictive and I found myself drawn to it again like a drug. It’s movements are huge and if you get on the wrong side of it, it is extremely satisfying.

I entered again, a short at 10993 as the long pattern broke down and with 30 minutes to go before the markets closed, I felt this was going to be a decent move but I just could hang on and I closed for a mere +26 profit.

However, the market has crashed as I write and at one stage sat at 10833.. if I got out then, that’s a +150 point profit.. wow! There are some really serious movements in the market lately….

Anyway, I ended today up which was good

Tags: day trade, daytrade, daytrading, dow jones, dow volatility, makemesomemoney, spreadbet, Spreadbetting, Trading, trading the dow

Usually I really don’t like trading the Dow as there is always a lot of short term noise which tend to mess up your trades by whipsawing the price action beyond your stops and then reversing. The main reason I guess is because the Dow Jones average is comprised of just the 30 biggest stocks and movement within the biggest one can move the markets.. in other words, market manipulation with the Dow Jones is not unheard of.

Anyway, I did place a couple of trades.. firstly a short at 10908 which went the other way and stopped me out at 10955 for a -47 loss.

My second trade was then a long at 10964 at double the previous stake. I closed out at 10986 for 22 points but as I went in at double stakes, it was +44.

My overall P/L was -3 today.

Hmm, I really need to get myself trading the Dow Jones, it’s a dangerous market to play with and considering the currently volatility, unless you have deep pockets (even at low stakes), you’ll just be gambling.

Yes, I could have held for greater profits for the last trade but the markets bounce up and down so violently I am glad that I have got out today with such a small loss.

Tags: day trade, day trading, daytrade, daytrading, dow volatility, long the dow, makemesomemoney, short the dow, spreabetting, spreadbet