Advise for new futures trader.

ElectricSavant · May 11, 2003

Sean,

Is it possible to close an ES position initiated through IB using another broker

Last year before http://www.daytrade4less.com changed to
RCG Collins(or whatever they are called) from Refco you could get the IB platform together with their low $500.00 daytrading margin. But don't tell this new guy that.

But this does not have anything to do with your question...just a side note

Michael B.

nitro · May 11, 2003

Quote from Vas62:

Hi all.
I'm going to start trading ES and/or NQ in a few months. I traded stocks part time since 1999. Not much of profit. Considering it as a learning period. I 'd like to ask you guys to share your experience in trading futures: indicators, software ,brokers,monitors (screen)setup ,what's watched during trading day(besides e-minis of course ) etc.
Thank you in advance for your input.
Vas62

Don't trade the ES or the NQ when you first start out. Make your decisions based on them, _BUT_ trade using 100 shares of SPY or 100 shares of QQQ to implement the trade. As you gain confidence, increase your share size.

Once you reach 500 SPY or 800 QQQ, you are "ready" for 1 ES or 1 NQ.

Best of luck,

nitro

PetaDollar · May 11, 2003

Quote from Vas62:

Hi all.
I'm going to start trading ES and/or NQ in a few months. I traded stocks part time since 1999. Not much of profit. Considering it as a learning period. I 'd like to ask you guys to share your experience in trading futures: indicators, software ,brokers,monitors (screen)setup ,what's watched during trading day(besides e-minis of course ) etc.
Thank you in advance for your input.
Vas62

Trade with whatever setup you decide to go with ON PAPER for
a while first. In other words write down the ask when you buy, the bid when you sell, in real time, with the software running you've decided on.

Vas62 · May 11, 2003

Wow. Didn't expect so many posts. ThanksElectricSavant,marketsurfer,peterfigliozzi and nitro for your input.
ElecricSavant, I have two desktops and one laptop networked(main workstation with 1 Gig of Ram),cable connection (Dial Up as a backup),Tradestation 2000 ProSuite and will get E signal next month, so hardware and software is in place(at least I think so).
Now I need to find a setup for intraday trading and backtest it.
More inputs on methods would be appreciated.
Thanks again guys.

ElectricSavant · May 12, 2003

Perhaps you should try to find a setup that is anticipatory. You will find the ES/NQ/YM faster moving than stocks. So your entries and exits in the beginning will need to be easy.

Michael B.

P.S. I think you are crazy for wanting to trade Futures. Are you prepared to lose all your money and blow out?

Vas62 · May 12, 2003

Quote from ElectricSavant:

P.S. I think you are crazy for wanting to trade Futures. Are you prepared to lose all your money and blow out?

LOL. Yes I have an experience in doing this (I mean losing money in the market) .On serious note I think is much easier to learn behavior of one trading instrument by watching it for some time(few months) before trading ,then to go everyday with different animal (in case of stocks). I think it develops feeling(no, not love

) for this instrument's behavior.

RainMaker3000 · May 12, 2003

try to trade in the last 15min of the trading day, simple as that. take your loss or gain during that time frame. you'll figure out the rest

PetaDollar · May 12, 2003

Quote from Vas62:

On serious note I think is much easier to learn behavior of one trading instrument by watching it for some time(few months) before trading ,then to go everyday with different animal (in case of stocks). I think it develops feeling(no, not love ) for this instrument's behavior.

heh, y'know, I feel like the NQ is my buddy, and i'm just trying to figure out what he's up to.

I tell ya what, it helped my long term stock investing a great deal;
with futures you exercise proper money management or you die;
you exit smartly or you die; with stocks you can learn bad habits and get away with it for a while.

wallaby · May 12, 2003

Howzit Vas

I think Nitro and Peter are spot on. If you do not yet have a
record of consistent profitability (who does when they're starting ?!) and particularly if you are trading for intra-day moves, it is great advise to start on paper (even just for a few months), then trade the SPY or QQQ starting with 1 lot ; and as Nitro says work your way up to the futures equivalent.

It's necessary to make mistakes when you're starting out [even for a second or subsequent time] so you can figure out what works for you - and losing small amounts (instead of large) in the process is the best way to avoid any major "mind damage".

Best of luck.

Cheers

plumlazy · May 12, 2003

Vas62,

Some more food for thought.

If you find yourself having an ich to trade into afterhours - keep in mind that ES and NQ close at 4:15pm ET and re-open at 4:45pm ET. Sometimes they gap up or down quite a bit during this time. (especially during earnings season)

With that thought in mind, my advice is: don't gamble on afterhours earnings with a small account. Even with a large account, if you trade afterhours, trade small. (preserve capital)
My point is that eminies can and sometimes do, make huge, fast, moves afterhours when volume is thinner.

Hedging can be done during the eminies' 30 minute downtime and I'm sure the pros do it using YM (dow minies) or any number of other different vehicles. But I think those plays are best left to those who are not just "starting out".

Also, when market moving news events, such as 10am numbers come out, it might be wise to go flat (or at least reduce size) and watch for the reaction rather than staying in a mediocre position. Often the market will get thin during such times and can have some rather fast moves. (can be real good when you are on the correct side - but also can be damaging when you're not)

Best regards,

plumlazy