Please help on ES questions

Quote from abenyukh:

I would like to learn about trading ES and ES options. Where is a good place to start.

I am not sure exactly what the price of the ES has to do with anything other than the amount of gain or loss once your in because apparently you just need to have $2000 in your account to buy 1 contract.

I think thats what i was told....

Any help would be greatly appreciated.
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abenyukh:

An excellent way to start learning about trading ES (or NQ) would be to sign up for a simulated trading account with a brokerage firm and just experiment! I think they start you off with $50,000 in play money and you can see how you perform after a day, a week, a month, etc. That should give you plenty of feedback on what your strengths and weaknesses are and what you need to work on.

Kermit
 
Quote from abenyukh:

How does leverage work with eminis. If i have lets say $10000 account, how many ES contracts can i play at once?

I thought it was like 2 because of the 3563 margin requrement
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Actually you could trade 5 on an intraday basis. Trading anything more than one without extensive knowledge of the market would be pretty quick suicide. I agree with others that you may wish to start trading ETF's as you will lose money slower.

Jay
 
An excellent way to start learning about trading ES (or NQ) would be to sign up for a simulated trading account with a brokerage firm and just experiment! I think they start you off with $50,000 in play money and you can see how you perform after a day, a week, a month, etc. That should give you plenty of feedback on what your strengths and weaknesses are and what you need to work on.
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I think the broker is PFG, software PFGBest. great for practicing your technique.
 
Quote from abenyukh:

yes, but lets be realistic, for me to lose 84000 the s&p would have to drop to ZERO. It looks like 15-20 points are intraday swings so if i set realistic stops, i could potentially do ok?
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More like 25 points intraday.. it has been quiet lately.
Yes you could "potentially do OK." Paper trade the ES in real time for a week and you'll see there is lots of noise which will grind you down quickly. The movie "Fargo" comes to mind.

Also, if some one could explain Options on Futures for me.
As i understand, if the option is at $25 for example, and i bought 1 contract that woudl be a cost of $25 * 50 which is $1250 and that is all I would be risking correct?

If the option expires or is worthless, i only stand to lose $1250, so there is no exposure greater than the premium correct?

would stock index options on futures be a good vehicle for me to investigate?
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100% is all you "stand to lose," yes.

IMHO, SPX or OEX options are better than ES for swing trading, since you have comparable leverage with absolute risk control. ES options are not so liquid..

ES (futures) are better for intraday since they are more liquid. Intraday there is more noise, though.

Also, SPX/OEX options are cash settled, while ES options settle in ES contracts.
 
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