DAX Trading Like A Pro
DAX Trading can, at times, be very uncertain but if you are armed with the correct tools (even if you are an amateur), you can trade the DAX like a pro!
There are countless tools and methods out there that can be used to increase your chances of success. Unfortunately, many of them are quite expensive. The good news is that you do not have to use these expensive (and often necessary tools) to be profitable. By simply following some sound advice from seasoned trading professionals, you should be able to develop your own tried and trusted strategy.
Many professionals who take part in DAX trading never trade between the hours of 12:00 and 13:00 as these are the market times that never yield profit. In addition, they only ever enter a trade when there are pull-backs from a major trend and when stock has been overbought (for example at 80 points) or oversold (for instance at 30 points).
Professional traders advise that because the DAX has a a wider stop-loss, it is a “noisier” market than other markets, such as the FTSE. You would therefore need to look at methods that include 2-hour breakout systems with 20-point stops, and then allow your profits to run until such time as a non-static average divergence or crossover in the RSI or MACD occurs.
Other highly effective DAX trading strategies include making use of TA signals to close off your trading and the use of a DAX breakout system. A DAX breakout system can be used during the first 40 minutes of trading together with a 5-point stop for maximum effect. When exiting with a DAX breakout system, a 15 point target is a great way to go.
By using the above DAX trading strategies, you should be well on your way to becoming a DAX trading Pro!