Trading on US Tech 100 - tip needed on news feed

[vindaloo79]

Hi folks.

I have been dabbling with some small scale limited success on trading the general upwards trend of US Tech 100 lately. Started after big drop early May once uptrend seemed confirmed

Using limit sells and trailing stop losses to effectively scalp is the best way I could decide it.

Sometimes passively with limit order buys. Often manually when big moves are afoot and an obvious trend is showing that day or hour.

I have managed to achieve 80-90 % profitable trades over a month or sp, but have been occasionally hit by not closing losing sell trades early enough and over time I’ve gotten better at that.

I haven’t got a clear strategy or defined system for targets or risk ratio per trade so quite rough and ready.

But I was wondering: can anyone here offer any good tips on news sources they may use to get a feel for the days anticipated movements.

I expect that big tech results days or ex div are two. US policy announcements also. Up until now it’s been gut feel and charting based.

Profits are in region of £20-50 per day on average. From £4K starting point. Previously some loss days meant -£80. I make money the most on days where a drop in uk morning is followed by rise upon US opening.

I welcome any pointers, and appreciate at some point US Tech will reverse the trend hence my tight stops.

[bmwmike]

Interesting topic. Curious to see your replies.

What i have noticed, is that one of my global tech fund trails the constituent equities by 2-3 days. So if apple rises for 3 days, then drops on the 4th day, the fund continues to rise until 2 days or so after apple dropped. That's a casual observation anyway, and I keep meaning to write some code to track the actual prices and graph them up.

[vindaloo79]

The main reason for my success seems to be very tight spreads

[jimmydash]

It's not for everyone, but I invest in both LQQ3 and 3LUS. They are both geared at three times change. So if the Nasdaq 100 goes up by 1% LQQ3 goes up by 3%. If it goes down by 5% then my money goes down by 15% - this is why it's not for everyone and I am not qualified in any way to give financial advice nor am I suggesting you do the same as me. I didn’t know about these funds until someone told me. Look at the charts on Morning star.

https://www.morningstar.co.uk/uk/etf/snapshot/snap...

[vindaloo79]

jimmydash said:

It's not for everyone, but I invest in both LQQ3 and 3LUS. They are both geared at three times change. So if the Nasdaq 100 goes up by 1% LQQ3 goes up by 3%. If it goes down by 5% then my money goes down by 15% - this is why it's not for everyone and I am not qualified in any way to give financial advice nor am I suggesting you do the same as me. I didn’t know about these funds until someone told me. Look at the charts on Morning star.

https://www.morningstar.co.uk/uk/etf/snapshot/snap...

Tough crowd lol.

So I use spread betting which allows me to use leverage, which as a novice think amounts to the same thing. my spreadbet means there is no capital gains tax to pay assuming that I can achieve that level of profit.

How long do you hold your positions, and how you decide to enter or exit a trade ?

[DaveA8]

NowWatchThisDrive said:

vindaloo79 said:

jimmydash said:

It's not for everyone, but I invest in both LQQ3 and 3LUS. They are both geared at three times change. So if the Nasdaq 100 goes up by 1% LQQ3 goes up by 3%. If it goes down by 5% then my money goes down by 15% - this is why it's not for everyone and I am not qualified in any way to give financial advice nor am I suggesting you do the same as me. I didn’t know about these funds until someone told me. Look at the charts on Morning star.

https://www.morningstar.co.uk/uk/etf/snapshot/snap...

Tough crowd lol.

So I use spread betting which allows me to use leverage, which as a novice think amounts to the same thing. my spreadbet means there is no capital gains tax to pay assuming that I can achieve that level of profit.

How long do you hold your positions, and how you decide to enter or exit a trade ?

Just to clarify on the bit in bold - though they appear to be the same thing, with leveraged ETFs you are more susceptible to your returns being eroded by volatility (even when it's fairly run of the mill), as the ETF has to rebalance its holdings every day to maintain a constant leverage ratio - so there is a catch.

What you write is incredibly important, it is difficult realise until it is pointed out and then it is very simple. I know Michael Gayed in the US wrote on this and before anyone trades leveraged ETF's they should track that down and see the examples.

[Sheepshanks]

vindaloo79 said:

But I was wondering: can anyone here offer any good tips on news sources they may use to get a feel for the days anticipated movements.

I've dabbled and am involved in the tech industry. My observation would be that the market often does the opposite of what you think it should do. It also occurs to me that by the time you see the news it's already too late as prices have changed.