Thinking of trying eminis out. Traded Prop Before

W

wastrading

I traded for about 18 months in 2000-2002. Started at about 13 cents a share profit after about a week had an instinctive gut trading style highly technical. Went down to 2 working at a prop firm ended at 1200 share positions and my trading had basically degenerated into just buying or shorting a bunch of semis and financials and waiting for a market move since the NYSE stocks had all turned into no moving slugs. Quit and am now in law school since I thought it'd be a couple years before stocks were seriously tradeable instruments again.

Anyway I'm thinking of starting an emini account with some risk capital I have laying about.
So I'd appreciate advice on what kind of trading style us usually sucessfull at emini trading and how I can translate my stock experience.

Thanks in Advance

WasTrading
 
Hi there:
I'm glad your risk capital is just "laying about". At $50 a point, it is quite possible that some portion of it will soon be laying about in someone elses account. I say that because I estimate that it will take a while for you to aclimate to the futures market. For one thing it is quite "noisy" and depending on the volatility you encounter it can be difficult (even for experienced traders). As far as using your existing skills, I suggest you start by practicing methods to get in and out of the market. Look at the contract specification (CME website) first, so that you can get the basics like hours of operation, native orders, etc. Then check with your broker to obtain the margin requirements. Choosing a strategy is a more demanding task. This is a market prone to retrace on a regular basis. If for instance you chose to be a trend follower, but did not use an appropriate stop size, your risk capital could be gone in just a few sessions. One possible solution is to search (top right hand corner home page) and review the examples of other traders. I can recommend threads posted by "nopm_please", and "tripack". Take it slow. Good luck. Steve46
 
We have to stop turning away new money.
That's why the market has no follow thru.
It's only us, elite traders trading against each other.

So, from now on, my motto is going to be...come on in! The water is warm and bubbly. We'd really enjoy your company.

Doesn't that sound more warm and friendly?


:D
 
Well, I have to admit, on days like today it is tempting to run out and grab people off the street. It can get pretty quiet. OK then. Why not. Wastrading, forget what I said about being careful and taking it slow. Come on big boy, lets see that bankroll. In fact, if I were you I would jump on the first volatiliity breakout I see. Stomp on that accelerator and hold on. By the way, you will need to have at least a 4 point stop (and a prescription for some blood pressure meds). There, that should help a little bit with the "follow through" problem. Good luck (everyone). Steve46:D
 
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