FAQ - How To Stay In The Trend

Hi Dr Jeff

I enjoyed your webinar about trading the Dax. I am interested in trading the Dax and local SPI200 Index because of the more suitable trading time frames. However the cost of 5 pt profit (AUD208.00) is $55.00. Could you suggest ways to stay in the trade longer and try for 15 to 20 pts profit or more. Cheers, Mathew

Mathew very happy you liked the webinar. In answer to your question…

There are basically two ways to shoot for bigger profits.

1. You need to hold positions overnight as it allows for more follow through in the market. Of course, the only negative is that you carry increased risk exposure overnight. In addition your broker requires higher margin overnight.

2. The second way to increase potential profits is to choose a profit target and stick too it. For example, the market is attracted to big numbers like 7000, 7500 etc. So if you enter a trade when the Dax is at say 7370 and you see it is trending really strongly then try and stick with it knowing that the probabilities are high that it will get sucked into that number. I would however use some type of trailing stop to help lock in the profits just in case the market is not ready to reach 7500.

3. Finally an important strategy for banking more points is to simply not bail out too early. Many traders get very nervous the minute the market starts slowing down or backing off a bit and will bail out to preserve the profits they have. Sometimes this strategy works, but many times the minute they get out it will rocket up for a huge gain without them. The bottom-line is traders need to fight the urge to bail out prematurely.

Hope that gives you some food for thought!

***These strategies are for any informational purposes only. Use of this web site and it's information is entirely at his/her own risk.