Latest Trade (WNO)

[SSI]

WNO, i saw your question in the other post........... decided to just walk you through my latest trade, from start to finish......

i didnt trade the grains today, i wanted to be out of those markets, there is a huge report coming out at 7:30 am tomorrow morning......... i dont like to be in for those......... its a guessing game with them.........

Lets look at my Emini SP 500 trade.......


the emini is a smaller version of the SP 500 market...... it trades at 1/5 the size of the sp.............. each point is worth $50 (just like the grains)...

this market basically trades around the clock, with a few designed breaks along the way.......

the emini (as well as dow and sp 500) are in an uptrending market... this can be identified by simply looking at a chart or looking at closing prices.. i hand chart and price each night, so its easy to keep up with......

i bought 1 march emini sp 500 at the market today......... this is a market order and ok to use in this market as the volume is always heavy.......

so im long 1 march emini sp 500 from 1450............. i placed an initial stoploss at 1443.75 (this order is called a sell stop), it will not be engaged unless the market trades down that low.......... this is how you limit risk, common term is stoploss............. now im long so i want the market to rise..

luckily todays low of 1446.75 held, actually wasnt threated again....

this low was key, as it was the exact middle of the bollinger bands, off a daily chart............ i can discuss bollinger bands later with you......

simple terms, i bought a pullback in a bull market (up trending market)..... i have my entry, i have my stoploss........ im risking 6.25pts on this trade or $312.50.............

at the moment, i have no profit target, as i want to see if we make new highs........ currently we sit at 1453.50.......... so im up 3.5pts or $175..

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

feel free to ask any questions........

 

[SSI]

note to Fishead,,,,,, i couldnt sell this market today.............

i prefer to buy DIPS in up trending markets..........

if we take out todays high of 1455.75, ill raise stoploss to 1446.50 (just under todays low) and make this a very low risk trade............

Looking for new contract highs,,,,,,, top of bollinger bands is 1466......

Bobk, if you read this, maybe you can explain bollinger bands.........

the emini is a very heavily traded technical market and many make a living by simply trading this one market..........

 

[WorldNumberOne]

no need to explain bollinger bands. i got a handle on all the indicators.

i have been reading quite a bit lately.

thanks for the info .

how much money would i need to have on account with a brokerage firm to play this type of " wager " ?

give me a per contract ammount i would need .

thanks

 

[SSI]

WNO.....

you would need initial margin of $3500, then after that, you would need a balance of $2800 maintance margin to stay in..........

there are ways around this, that i wont go into....... (like exiting at the end of the day session 3:15 pm CST, then re-entering on the re-open thirty minutes later........

this all depends on your broker,,,,,,,,,, ive been with the same firm for several years and are friends........ so i can bend alot of rules.......... but i try --- not to do that..........

emini currently sitting at 1453.50.................

 

[WorldNumberOne]

so if i had 15 grand loaded up somewhere , i could play a couple of contracts at a time ?

could i play these thru a scott trade account ?

do real time quotes come with the service when you are loaded up at a scott trade or any other online broker ?

i hear the guys on fast money say " their is a 30 million float " on the shares of a particular stock , what does that mean ?

thanks

 

[SSI]

i dont know anything about scot trade........ except its a good cheap way to trade individual stock............

the emini sp is a commodity and traded as such, i dont know if scot trade offers commodity trading.........

emini now at 1455.75, right on yesterdays high, if we trade at 1456, my stop gets raised to 1456.50

im long from 1450, so currently up $275..........

and yes $15k is sufficient to trade 2,,,,,,,,,,,,,,, if you know what your doing, you could trade 3 lots with that much........

30 million float is a stock question..........

 

[SSI]

WNO, ive now raised my stoploss (sell stop) from 1443.75 to 1446.50...

high today 1457, currently 1456........


its possible ill take profits and close out trade before weekend, although i had hoped to ride this one a little........


im still in the early phases myself of turning this into a fulltime occupation... im currently only using about a 10k alloted Trading account.. ill bump it to 25k eventually.......... this is an 18 month process for me..

today or next week, im going to be moving into a form of trading, that requires more patience (in waiting for trades to develop)...

at this stage in my trading, id prefer to be doing only 2-3 trades per week and trying to make a profit of $200-$300 clear per trade.......

in doing this, one will spend more time out of the markets than in them...

wait and wait for the setup, then take the money......... at least thats the plan....... $400-$500 per week, right now ---- is ideal for me.......

 

[WorldNumberOne]

when you placed the " long march " , does the time frame resemble an options contract where it expires on the 3rd friday of march ?

was their an option to play this for feb ?

i guess their is an option to day trade this actually , so probably a silly question...

would you also be able to play a long april or long june for that matter and just let it ride as long as you want until those months ?

does the stop loss you place dictate what your margin requirement would be for a play on this ?

if not , would you need more money on account if you played a real long time frame ?

thanks for your time ..

 

[WorldNumberOne]

oh well... get em next time.

 

[SSI]

stopped out at 1446.50......... loss of 3.5 pts or $175, as i only had one...

stoploss does not dictate your margin........... each commodity has a margin and thats subject to change....

the emini does not trade every month....... after march goes off, the next month that trades is June........... you dont need to trade back months in this.......

volume in March emini sp 500 today: 970,072
volume in June emini sp 500 today: 1,357

forget about trading back months,,,,,,,,,, simply stick with the front month, if you still like the trade at LTD (last trading day), roll the position to the next month.........

i spent my time in the grain markets today...........

here are 2 real trades that i made...

Bought 2 march wheat 459.5, sold them back at 462.5 for a $300 profit..

this was part of the set up trades that im looking for........ this trade lasted about an hour............

wheat immediately ran all the way to 470, so i should have held on longer but then sold off at the close and settled at 460.5..............

i went long 2 march corn at the very end of the trading day at 406...

thats where i sit now. long 2 march corn.......