Emini SP 500

[SSI]

this thread will be for the emini sp 500....... its simply a smaller version of the big SP 500 market and trades at 1/5 the size of it..

1pt =$50...

overnight margin =$3500

this market follows, what you guys know as the stock market......

i havent got a lot of time this morning, but i want to go over the beginning numbers that we will be using..

1/5: open 1427.75, high 1428.50, low 1414.25, last 1416.50

1/8: open 1417.25, high 1424.50, low 1413.00, last 1422.50

1/9: open 1422.50, high 1427, low 1414.00, last 1420.50

this market can move really fast and is the best market to daytrade, millions of contracts change hands daily here....... i am not going to daytrade, so any conversation that ill have, will be in the form of posistion trading.....

notice we made a new high on the 9th but it didnt take out the high made on the 5th....

quite frankly, there is pressure on this market at the moment..

id advise any newbie to trade this market, later in your studies..... its really for the big boys.....

 

[SSI]

at times, this has been my favortie market to trade, just so much money laying on the floor but picking it up, can be quite difficult.....

Lets look at this market today...

opening 1420.75,,,,,,,,, made a high of 1421.50 and immediately began to be sold off........ todays low (at the moment, 8:30 am cst) is 1412.25....

so you see the early pressure is on the downside...... we have already taken out any low made in the last 3 trading sessions, this tells me even more that we want to go lower......

so now that we have our direction, we look for an entry to a trade and a place to put our stoploss and the place for a stoploss, can only be 1429.. because thats just over the high of 1428.50, made on the 5th.... notice we failed at 1427 yesterday, this lets you know there is resistance there..

now lets go look quickly again at the actual daily chart on this one.....

 

[SSI]

ok, my assumptions were correct........ good point for stoploss is at 1429.00....

now lets look at a highly agressive trade...

(2) currently we sit at 1417.00..... and the emini is the only market that ill place market orders, so your filled, while still on the phone with broker..

ok, filled 1417.00....

(2). short 1 emini sp 1417, place stoploss at 1429......

that is 12pts or $600 in risk...

this trade is most certainly for practice and will simply let me know, if im reading market correctly.............. very high risk, agressive trade here..

 

[SSI]

ok so now i sit in 2 trades, which is enough for a small funded trader..

we are short both sugar and the emini, in trades 1 & 2, in our simulated trading program....

refresh yourself in the way i trade, posted in sugar trade (last post)...

we are short from 1417, currently we are at 1414, so were up 3pts, made $150 in 10 minutes....... daytraders would be trading multiples and cashing out....... not us, were posistion traders........ we are watching 2 or 3 pts today, in this fast paced trade....... our low of 1412, our high of 1422, and our stoploss at 1429.............

but in reality, ive made this trade, now there is nothing to do but watch and wait...... the market will prove you right or wrong.......... our stop is in, we are covered, lets see what happens......

 

[TheFalls]

So "short 1 emini" means that you are counting on this market to continue to creep and stay lower than 1417 (entry point).
You can only make money if this market stays under your entry point of 1417 right?
If the market goes above 1417 up to 1429-you will have lost $600 on this deal.
If it settles at 1420 for the day, you would have lost 3 pts or $150.
Could you set your stop loss at say...1423 to minimize your exposure?
I guess if you had 5 contracts, and you would have gotten out of this market after it hit 1414, you woul have made 3 pts x 5 contracts or $150 x 5 ($750).

It seems that if your stop loss point is ever hit, your tendency would be to want get on the "short" side again-assuming that the market will swing back around.

When would you pull out of this deal if the market say...closes at 1410 today? You would have made 7 pts ($350). OR would you lower your stop loss?
I guess I'm confused as to when you get in and get out. Is it daily? It seems like the market can only go in one direction for so long.

 

[SSI]

falls, good questions.......... let me try and answer them,, then ive got to go out for a few hours......... this is where my broker would baby sit for me..

i am a Posistion Trader, with a technical strategy...... its almost 100% mechanical, when a trade is entered.........

yes i entered short (sold one) at 1417, yes i placed a stoploss at 1429, yes my risk is $600.............

now here is where your getting confused.......... im a posistion trader, not a day trader.......... i did not get in this trade to run out of it...... im a big believer in simply letting the market take you out........ sure you can get out, whenever you like...... you could have taken profits at 1414, you could have set stoploss at 1423, to limit risk...... i chose 1429, because im a posistion trader and thats just above the old highs from previous days..

i will get out, when the market puts me out........... now i will admit, trading the emini is the big leagues...... this trade was more, for me..... to see how well, i was reading.......

remember it takes $3500 to stay in each emini contract overnight..... you can daytrade for much less, but im not going to be a daytrader........ been there and done that (bought a lot of t-shirts).........

ill be back this afternoon, to check in and talk about:

my sugar trade (trade 1)
my emini trade (trade 2)

the soybean market and a brief introduction to the hog market.......

until then, im in the 2 trades, my stoplosses are in, my broker has my orders and cell phone number, nothing more that i can do......

please keep asking........ im being refreshed by the conversation....

 

[SSI]

sort of screwed the pooch on this one......... trading the emini is very risky, most daytrade this market but im not going down that road..... i need to be a posistion trader, for a lot of reasons.......

this trade was more or less, to lett me see how i was progressing..... and ive got more work to do.

chances are with real money, i wouldnt have done this trade but im in now and will sit tight........ being "wishy washy" is very bad in this business...

short 1 mar emini 14.17, stoploss 14.29.............

nothing will change for now......... this is the only market that i would do things, not so mechanically......... but lets just walk thru it....... things are more fast paced here....... dont trade this market until you have a perfect setup and a lot of experience under your belt....... you just thought you were a "fish" in a poker game full of vets......

this market trades, almost around the cloce, however the volume is very low at night..... picks up mostly, in the early morning and when the big board opens......

ill fill in todays numbers later tonight......... this market closes for several minutes, starting at 3:15 pm cst, or in about 10 more minutes...... then it re-opens on the night session..........

margin is $3500 to stay in, so that tells you that you must have that in your account......... however its no problem to exit your posistion just as day session closes and then get back in, on the night session..... this will avoid margin call and can be done with a creative broker....... although you will pay an extra comm........

 

[SSI]

for the moment, we are still in..........

short from 14.17, stoploss 14.29

like i said yesterday, this is not a trade for everyone and i dont know if id even done it........ it was more for my practice.......

ill update this trade later........

but today in the emini, i want to discuss a strategy called momentum trading........ this is a form of daytrading but requires waiting for the set up..

ill discuss it later, its hard to type this in real time.........

 

[royalfan]

Wouldnt it be the case in a fairly volatile market such as this one, that your max loss could be much much higher than 600 even with the stop in place, if you are holding overnight, which is the case being a position trader? Also one question I have about stops in commodoties markets is the games they play. I have hear that in sp option trading the market makers will scoop up those stops often time and then the price heads the other way again very quickly. Almost like grabbing that stop out of thin air like magic. Not sure I am explaining myself well, but any thoughts on these issues? Thanks again for your time and efforts.

 

[SSI]

royal fan,,,,, no is the answer......

you have your stoploss in, for the night session as well................ the emini sp market is very stable and there is NO slippage in this market,,,, other markets there are.......

yes to your 2nd question........... its called running stops............ the nasty floor traders do it alot.......... its part of it......... however this doesnt happen in the emini........ too much volume to do this....... they cant manipulate this one.....

keep asking.........

i could tell you many ways around the stop running to avoid it, almost all the time......... but im still teaching the basics here........

you have bad beats in betting all the time........ guess you could call running stops a bad beat........