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.If the picture changes and you find yourselfon the wrong team, respond appropriately.P1: JYSc09 JWBT016-Busby September 30, 2008 14:11 Printer: TBDDancing with the Dax 111FIGURE 9.2 A five-minute chart of the Dax as it nears its daily close on April 28,2008.REVIEWI enjoy my dance with the Dax.The Dax is a good reflection of global mar-ket sentiment, and understanding it will improve your trading with bonds,stocks, and other products.I gain a bit of confidence by using the Dax asa market indicator.Because Germany is Europe s largest economy, the in-formation reflected by the Dax numbers is very important.I have several trades that I often make on the Dax.I trade earlyin the morning before the U.S.exchanges open for business.Using the6:00 AM Dax number, I am able to determine market sentiment and tradewith it.Around 10:30 AM, I pay careful attention as the other big exchangesof Europe close their trading pits.Sometimes I execute some positions andride the wave of those closing to profits.My vehicle is the Dax.Finally,there is another trade that I anticipate regularly.Both the NYSE and theP1: JYSc09 JWBT016-Busby September 30, 2008 14:11 Printer: TBD112 STRATEGIES TO WINDax futures close at 3:00 PM.If I see a trend going into the close, I trade theDax and ride it for the last 10 minutes before the pits in New York close.In addition to these trades, I am always looking for new opportunitiesand ways to make money.To learn more about the Dax futures, visit theEurex Exchange web site at www.eurexchange.com.If you re interested ineducational courses or seminars, contact DTI at www.dtitrader.com.PEARL 15Be open-minded and continue to learn.P1: JYSc10 JWBT016-Busby October 9, 2008 11:3 Printer: TBDCHA PT E R 10Money NeverSleepsore than two decades ago, I worked for a brokerage house wherethe bull was all but idolized.Being a team player and a good em-Mployee, I followed the  bullish philosophy, but found myself losingmoney far too often.Going long is simply not always the right thing to doto make money.I knew that I needed a product that allowed me to be prof-itable in both up and down markets.Traders who limit their trading to onlylong positions are very limited in their ability to adapt and trade when eco-nomic hard times come and the bears rule.I was considering this problemand looking for a solution when the Chicago Mercantile Exchange (CME)announced that they were introducing a new product, the S&P 500 indexfutures.I knew that I needed to trade the S&P, and I immediately did so.Ini-tially, the contract offered was a big contract that traded for $500 per point.A few years later, the contract split, and today it trades for $250 per point.A short time after being introduced, the product line was again expandedwith the debut of the E-mini.The E-mini is valued at $50 per point.Thelower point value makes this product more appealing to a wider audienceof traders.Today, the S&P futures are one of the most frequently tradedfutures contracts, with over a million contracts traded on the average busi-ness day.The volume of activity makes this a great place for day tradersto make money.With so many buyers and sellers, it generally only takesa click of the mouse to buy or sell.Also, there is sufficient price move-ment during the course of the average day to allow for plenty of profits tobe made.At the time of this writing, the average true range (ATR) of theE-mini S&P is 20 points, representing a monetary value of $1000 per113P1: JYSc10 JWBT016-Busby October 9, 2008 11:3 Printer: TBD114 STRATEGIES TO WINcontract for the total average daily move.The ATR constantly changes, soit is a good idea to regularly verify the daily range.One good site for doingso is www.barcharts.com.In the early days, the only way to trade the S&P futures was byphoning orders to the floor of the exchange for execution.Business wasconducted only when the open outcry pits were active.The Globex ter-minal changed all of that.In 1987, the CME proposed the concept ofan after-hours trading platform, an electronic trading system for futurescontracts.However, it took another five years before the ideas weretransformed into reality.Now it is possible to trade the S&P almost24 hours a day.The Globex session opens on Sunday afternoon at 5:00 PM,and on weekdays the action begins at 3:30 PM.Trading continues until3:15 PM the following day.That means that a regular Globex trading ses-sion extends from Monday afternoon to Tuesday afternoon with only a15-minute gap [ Pobierz całość w formacie PDF ]