Dow volatility and trading
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.
