Enjoy your Dance with the Dax!
For the past 6 years, Tom Busby has been enjoying day trading stock and other ventures. And one of the reasons that made him jubilant all the way is his graceful dance with the Dax. The Dax is an influential German index that trades on the Eurex Exchange.
“My waltz began on September 11, 2001, when our financial markets suffered a brief but major hit. Shortly after the two hijacked jetliners flew into the Twin Towers, US exchanges, including the NYSE and the Chicago Mercantile Exchange (CME), shut down and stayed closed for a week,” said Busby. “Prices began falling quickly.”
He continued: “Then I shifted to Europe and focused on the Dax. The Dax paid me and I continued trading it and making money. Today, the Dax is one of my favorite trading vehicles; I trade it almost every day. I also use it to gauge market sentiment. Over the last few years, I have seen the power of the Dax. I no longer consider taking a trade without using it as an indicator.”
Busby listed down some basic steps he utilizes. “First, I begin by getting a snapshot of the global action. Second, once I identify the direction, I concentrate on the Dax. Third, I focus on volume and sales. I have a proprietary indicator, the V-Factor that helps me with this analysis. Finally, I look at key numbers,” he said.
“I enjoy my dance with the Dax. However, even if are not a dancer, I suggest you sit on the sidelines and follow the beat. The Dax is a good reflection of global market sentiment. Understanding it and using it as a market indicator should improve your trading,” concluded Busby.
