Advice on European futures markets

Hi to all,

most of my trading thus far has been end of day, cause I work 9-5. Now I want to start daytrading European futures markets and try to do it for a living. I'm not a daytrader yet and certainly am not going to quit my day job until I've proven to myself that I can pull some money out of the markets on a regular basis.

So I'm looking for advice from people who are successfully trading European indexes. Which European based futures markets are good places to start?

Thanx
Mr Ewing  

Hi Mr. Ewing,

there are some European futures which allows you to start your intraday carreer. At first you need a running strategy which you have "tested" on eod-basis. When you have to work under stress intraday you need a solid strategy in your back.

Second the trading tools:
1. Treasuries
1.1 Schatz-/Bobl- or Bund-Future
the both first mentioned indices are moving slower than Bunds but have less volume. The Bunds are major treasuries where nearly everyone is trading - even the BIG players. Moves can be very impulsive!
2. Equities
DJ EuroStoxx50 is a not so fast moving contract with good volume. DAX has a higher multiplier and stronger moves. The SMI is the Swiss counterpart to the DAX with good trends during the last weeks.

So, there are lots of opportunities for you to start your intraday life! You can get further infos on EUREX site.

C ya,

007Trader  

Thanks 007Trader,

I make a little money trading, generally...
so i hope I "tested" my running strategy a little by now.
However, I need to gain operating experience in European markets...
For practice, I'll start with Treasuries... trade between 3am-7am (yawn).
maybe you can give me a hint?

Regards,
Mr Ewing
(already seen the latest James Bond? I like that!)  

Hi MrEwing,

yes, I've already seen the latest one of 007.
But it wasn't like "the" James Bond before. Graig
played the role well but in a different way to his ancesstor.

First I would give you the advice to try the Treasuries by paper trading. Several brokers offer that function. f.e. IB.
Then you have the choise whether to get comfort with Bund-, Bobl- or Schatz-Future. Their difference is in the traded volume and in the character of the underlying. They all handle about German Treasuries with several duration.

For ideas or several analysts' expectations just have a look on the daily commentaries at Futures House. They give a nice overview.

Best regards,

007 (himself)  

Mr Ewing,

007 is right when he gives you the advice for paper trading.
You just have to invest some time to see whether your nerves are good enough for intraday trading. Believe me - it's hard work like every other job!

But it has some important advantages. So you can decide every day to do your job or not, take some freetime and so on.

I will hold thumbs for your step!

Leonardo di Pisa (formally known as Fibonacci)  

You have a point there. Simulating trading is a good way to learn the ropes without risking any money.

But: it's the same as looking a Quiz show in TV and guess right... it's not "real life" and you will act out of character  

Hi Mr Ewing,

As mentioned before I'd suggest to start with FESX (Euro STOXX50-Future) and FGBL (Euro Bund-Future).

Both contracts are generally easy to handle (beside the standard difficulties in trading). ;-)

Yes, trading under real life conditions is completely different to the paper trades stuff. Try trades with small losses (and gains of course). Get used of the typical behavior while trading at low risk first before aiming the pot of gold.

Btw: welcome aboard at European futures trading.

Greetings

taishi  

Hi
@taishi: Thanks again! especially for the welcome!

The last days I observed FESX... and will soon add FGBL.
But first of all I want to analyze previous data and learn how it works. (as my time permits)

to limit the risk I had a good idea: I'll start paper trades, but -adding real life conditions- gamble with my favorite sweets!
(Don't laugh at me! It's terrible for me to pass on sweets.)

Greetings