Emini Trading

[SSI]

Ive tried this before in here but i need some more practice, before actively jumping into the market again..

The emini (sp) is a smaller version of the sp 500 market and it trades as a commodity.... for every point that it moves, that is equal to $50..... so from 1276 to 1277 is $50 and so is 1276 to 1275... the market can go both up or down and does throughout the day.. We (as traders) can either buy or sell the market first... We buy, if we think the market will rise..... We sell, if we think the market will fall....... You will be doing the opposite to exit the trade..

The emini trades almost nonstop for 24hrs, with a few set breaks... However the best and most active time to trade is from 8:30 am to 3:00 pm cst daily........ You must have margin requirements to stay in overnight, which at the moment is $4,000.. however you can daytrade with much less, my broker only requires a stop in place to daytrade.. the market has tons of volume and slippage is almost non-existent..

taking a look at the chart, the market is sitting at 1276.50 now (5 pm cst)
todays high was 1282.50 and the low was 1272.50, so it was rather a quite day in this market..

our goal will be to pull points out of the market, without losing our rearend.

going to try a few paper trades, before jumping back into live action..

1. sell 1 sept emini 1276.50, place a stoploss at 1291.50....

this means that we are short 1 sept emini at 1276.50 and we are willing to risk a loss of 15pts ($750) on this trade... if the market trades to 1291.50 we would be out of the market, a buy stop would be signaled and we would be automatically out.. so without anything catasrophic happening, that is our initial risk...

our profit potential is $50pt for every point that the market drops.. we will also be lowering out stoploss, if we are correct and the market drops... this will reduce the risk of the trade.. we can also exit anytime we like by simply buying a sept emini and cancelling the stoploss at 1291.50.. dont forget to do that..

in looking at a chart,,, go to "Commodity Traders Forum" and pull up the intra day quotes, its located on left hand side of page... then go down to SP 500 Emini GPX and click on that, this will pull up delayed quotes and show current posistion of market..

so away we go...

1. short 1 sept emini 1276.50, with a stoploss at 1291.50

ill update any info on this trade, as it happens, or as soon as i can.. feel free to ask any ??????? that you may have, pertaining to commodity trading or the emini market...

 

[SSI]

most nights the market is pretty quite (there are exceptions).. im sitting here watching the trade: got in at 1276.50, market made high on night session at 1276.75 and is now sitting on its low of 1275.25... at this moment, we would be +$75...

will give reports until this trade ends (this will be good practice for me).. can think thru a trade and record results..

needless to say, i want the market to drop..

 

[WorldNumberOne]

look forward to following you and learning something at the same time.

thanks for taking the time.

 

[SSI]

WNO, i need the practice,, ill be away on vacation next week but after i get back, im going to start trading alot..

might as well, record and talk about my trades here.. the trade listed above, would have been very simple to do..

it may or may not make money and ill be looking at charts, intra day, to determine any exits..

im not calling myself a day trader, but more of a "short term trader"... i like to be in for the bigger moves..

pay less comm by not jumping in and out of the market.. new low of 1275 but now sitting at 1275.50.. gives you something to watch overnight..

 

[SSI]

let me tell you what im looking at with this trade... i want the market to trade under 1271.... if that happens, i will lower my stoploss (risk on trade) from 1291.50, down to 1283 (just over todays high).. this will reduce the risk on trade down to $325... remember we are short from 1276.50.. and from 1276.50 to 1283 is 6.50 pts, at $50 per pt..

if this move is made, ill report it here....... feel free to ask any ?????? you may have... world number one? i cant help, if you dont ask..

 

[WorldNumberOne]

most nights the market is pretty quite (there are exceptions).. im sitting here watching the trade: got in at 1276.50, market made high on night session at 1276.75 and is now sitting on its low of 1275.25... at this moment, we would be +$75...

will give reports until this trade ends (this will be good practice for me).. can think thru a trade and record results..

needless to say, i want the market to drop..

at $ 50 per pt , how is 1.25 points worth $ 75.00 ?

do they require you to have $ 4000 in your account incase the market goes haywire and you have enough to cover severe losses ?

you wouldnt take your profit of $ 250.00 if it dropped to 1271 ?

thanks

 

[SSI]

world: my bad on the math.. 1.5pts is $75........

margin is required to hold a posistion overnight, and yes --- its in case things go haywire..

$4,000 is the emini margin,,,,,, the grains/meats/softs are all less than this.

at 1271, we could take our profit, we can get in and out, whenever we like.. however, at 1271, i want to still be short, as i think its going to continue lower........ i play off supp and resistance and old highs and lows are res points in the market..

1260 is good support and just over 1290 is resistance.. at least thats how im reading the chart..

keep firing away..

 

[WorldNumberOne]

what does " 1260 is good support " mean ?

1260 would be a ncie profit . 16 x 50

so you can just sit back and bet if the index will go or down all day ?

 

[SSI]

1260 is good support..... you have to read a chart... old highs become support and old lows become resistance..

you have to go to a sept emini chart, go to the link that i listed above, click on the quotes, click on the box marked indexes, click on the emini sp gbx, this will show the sept emini... click on sept emini and this pulls up a chart, and off this chart, you can see the supp and res points..

and yes, you can literally sit around and bet all day, on the market going up or down, and risk what you like and trade as many contracts as you want..

when i was trading heavily in the past, i traded 3 emini contracts at a time and had a live quote service..

trading commodities requires alot of study, i put in a lot of hours in years past but you can open an account and trade for a small amount of money. will you be successful?

thats up to you...

cut your losses short and let your winners run.......

1276 even at 9pm cst.. its a quite night but it will be rocking tomorrow morning..

 

[SSI]

i wont be around until noonish tomorrow, so ill update things then... i can monitor the trade somewhat on cnbc, they run a live quote for commodities every 10 min, on the crawl at the bottom. and you can see if its an up or down day on the boxes they have posted... ill also be talking with broker and getting some quotes..

 

[SSI]

ok here is an update of emini trade #1..

1. short 1 sept emini (1276.50) with a stoploss (our risk) placed at 1291.50 initially..

todays action (tues july 11), is showing a move in our direction, we were watching the old lows made on friday (1271) and monday (1272.50),,, once these lows were taken out, we lowered our stoploss from 1291.50 to 1283.00, which was just over mondays high of 1282.50.. notice how i play off of highs and lows in previous days, to indicate my moves... (not everyones style but it is an indicator that i use)...

we currently have a daily low of 1267.50, which means we were ahead 9pts ($450) at that point..

i am now placing a daily profit target in the market at 1266... this is an order that will last until 3:30 cst today or until it is filled.. so our trade #1 now looks like this..

1. Short 1 sept emini 1276.50 with a stoploss now at 1283.00 (risk is now $325).... we have a profit target in the market for today only at 1266 ($525 profit)...

this has been a slow methodical trade for the emini and could have easily been done by anyone without live quotes..

ill update this, later today.. nice downside pressure today..

 

[SSI]

just wanted to add, that my orders are in the market and i dont have to sit and watch the trade all day.. my broker has orders to call me if either the stoploss or profit target is hit.. otherwise i sit tight... when i get out, ill immediately be looking for a place to re-enter...

this is not day trading, its short term trading, playing off supp and res points.. big difference..

 

[SSI]

ok guys, i just cashed out of this trade at 1269 (at 12:40 cst)...

we tested the lows of the day again (1267.50) and couldnt take them out. Ive also got to leave the computer and go to the gym for a couple of hours, so i simply got out and took my 7.5 pts ($375) profit, minus the $25 comm... so i cleared $350 on this trade in under one day, with little or no worries and that was on one contract...

ill return this afternoon and re-evaluate the market again, and look to enter trade #2...

Trade #1: short 1 sept emini 1276.50, took profits at 1269.00... for a profit of 7.5 pts or $375..... Trade now closed and all stops removed from market..

Lets look for trade 2 in a few hours.. lot of support from 1260-1265 area..

merely written up as paper trade but im record keeping as normal...... perfect practice, makes perfect...

 

[SSI]

well, good thing that i exited the market with a profit... market, proceded to rally to 1282.75 and may go higher as its not closed yet..

as part of my trading, i hand chart... lets put some points on a chart and begin our hand charting..

 

[SSI]

points to place on a chart..

1340 and 1240 (contract highs and lows)

1290 and 1271 (july 7, highs and lows)

1282.75 and 1272.50 (july 10, highs and lows)

1282.50 and 1267.50 (july 11, highs and lows)

from looking at these points, we should once again test the 1290 mark. for me now the best points to look at are 1267.50 and 1290... we are inside this channel and ill try and play accordingly..

 

[Iceman]

SSI,
been reading from a distance. Trying to take a brief break from the whole posting/gambling during this slow peorid.

Here's my problem. I consider my self somewhat of a numbers guy. I love to play with numbers and handicapp. I try to out-think the public ( not always the case though). I like to think in my head that my numbers are good enough to have gain an edge.

Having NO ZERO ZIP ZILCH NADA clue what is going on and this becomes gambling. How are you making your decisions, charts. Are these educated guesses ( I am sure they are). Just need to find out how I can gain an edge on the public.

 

[Peebs]

SSI,

This is very good info, and I enjoyed learning a new market and strategy.

I will be reading up on this some more.

$350 profit in a half day with minimal risk is great. Good Work.

 

[SSI]

iceman, a short answer is yes... i become totally immersed in a market,,,,,, i know exactly where its at ----- all the time...... and this doesnt require watching a screen all day... you can just check from time to time.....

and yes, i totally play off support and resistance points in the market..

you just watch now, how the 1290 mark gets tested....... will it go higher than this, i dont know, but that will be our battle ground...... along with 1267.50 on the bottom...

im going out for dinner, ill talk more with you later......

peebs: that was only on a one unit contract... not alot of risk, if you know what your doing... lots of risk, if you dont..

 

[SSI]

Ice, to further answer your ???????

you have to look for good setups... you cant just jump in (willy nilly).... you have to know where the market should turn, or where it should take off...

If we have defined support at 1267, then we know we can buy just before and risk a few points after... we dont want to be in there with no stops, and have a breakout occur...

lets ponder what may happen... lets say the market tests 1290 but doesnt break it, we will have some support at the 1282.50 area.... this was mondays and fridays highs, old highs become support ---- once the market trades above..

now a short fast trade would be to buy in the mid 1280s and risk just below the support, say 1279............ if i were to do this trade, id have to be right on top of things...

time frame and stop placements become big parts of the trade... lots of guys play off 5 min bar charts and scalp 1-2 pts, many times per day.. but to do this, you need to trade online (paying $10rt comm) and have live quotes... that is a day trader... and its stressful and time consuming....

i choose to trade with a bigger time frame with larger stops.... sure my risk is higher but im not taken out by tight stops and (market noise)...

my ideal trade is: to get in --- on a good setup, have a wider stoploss and wait for market to move in my direction, then i can lower the stoploss to the point of freetrading and simply let the market take me out......



i once knew a man that traded the emini this way.....

lets say he sold one at 1277, he would place a stoploss and reverse exactly 13pts above his entry... and he would then proceed to trail the stop..... and by that i mean, lets look at this trade and ill explain.....

he got short (ONE) emini at 1277 and then place 2 buy stops at 1290... 2 because one takes him out of the market and the 2nd one reverses his posistion and makes him long.... so now the market falls from 1277 down to 1267 and starts to go back up... he would measure 13pts off this low of 1267 and lower his stop/reverse to 1280 (13pt above)...... now today he would have been stopped out with a 3pt loss,,,,,,,, why,,,,, because he was stopped out at 1280, 13pts above 1267 but only 3 pts above his entry of 1277........ he also would have engaged his long posistion at 1280....... so now he is long from 1280 with a stop/reverse at 1267......

however in this type of trading, a choppy market can kill you... but a trending one will make your rich.........

sorry for rambling.. ill report next trade later...

 

[zee]

SSI, I would like to contact you via IM or e-mail if possible. May I ask a mod about your e-mail address or would you rather ask about mine and e-mail me when you're comfortable?