BZZT! You are forgetting the performance bond. A single MES has a $1,188 deficit on it. So you do NOT get a 1000 point cushion to play with.
What would you consider the minimum Account Balance to trade Commodity Futures?
- Thread starter zghorner
- Start date
BZZT! You are forgetting the performance bond. A single MES has a $1,188 deficit on it. So you do NOT get a 1000 point cushion to play with.
Ya I was more just illustrating the amount of points it makes up, but yes, maintenance is definitely a factor.
CME futures, margin requirement
----------------------------------
copper $10k (very good volume)
mini copper $5k (volume almost zero!!!)
micro oil $700 (good volume)
micro gold 700 ( good volume)
Natural gas $20k (very good volume)
mini Natural gas $2k (volume is quite decent)
palladium $25K
platinum $3k
commodity futures are one of the best futures for day trading due to its
very wide day range.
It is good to trade the mini/micro first.
so $10K is sufficient to trade
micro oil, micro gold & mini NG.
interestingly, the mini copper volume is almost zero.
perhaps trade copper later when your account grows.
----------------------------------
copper $10k (very good volume)
mini copper $5k (volume almost zero!!!)
micro oil $700 (good volume)
micro gold 700 ( good volume)
Natural gas $20k (very good volume)
mini Natural gas $2k (volume is quite decent)
palladium $25K
platinum $3k
commodity futures are one of the best futures for day trading due to its
very wide day range.
It is good to trade the mini/micro first.
so $10K is sufficient to trade
micro oil, micro gold & mini NG.
interestingly, the mini copper volume is almost zero.
perhaps trade copper later when your account grows.
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Ya I started with micros but the commissions aren't worth it. You pay $10 round trip for 10 micros which is equal to 1 mini at only $3 round trip in the ES. That being said, for learning or beginning your journey micros are definitely the way to go. Helps ease you in and in that respect the commissions are secondary.
Most traders spent at least 100 times more BEFORE they are good. If they are in the group of the lucky ones who become good...
There are not many brokers that accept $100 accounts.
Some always tell you some "story" of someone cash advancing from his/her credit card. And made a fortune trading commodity futures. Sure it is all possible. But what is the success rate?
I used to be huge into playing online poker back in the 2000s after Chris Moneymaker and Rounders really set it off. Used to be a part of the largest online poker forums 2+2 where we discussed strategy and hands etc.
I remember there being one guy named Raze who had never deposited on Pokerstars or anywhere. He told of logging into his account and finding $5 on his account one day. Wanting to make sure he made the most of the fortunate opportunity he studied table selection and strategy before ever playing a hand. From there he started in penny limit poker. Over time he moved up not only in blinds but to No Limit. At the time of his story he had built 10s of thousands of dollars and withdrew money regularly, all from that initial free $5.
Myself, I'd have lost that $5 shooting for quick money in no time. Same with 99% of other players who'd have busted such a tiny amount.
Anecdotal success stories make for a great conversation piece, but represent a fraction of a percent in actually happening. More often than not you will bust your account quite a few times before actually committing to learning/ investing enough to actually build upon.
Anyone else think they would get lucky with penny stocks in their early days in order to luck into enough of a cushion to be able to finally "trade correctly"? That you were just trading like that because you had to and would show your actual mastery to everyone around you when you had the account size you actually deserved?
A smart person entering Las Vegas casino has a plan. He has a total of $2,000 to lose for his 3-day trip. He puts that cash in his pocket and leaves all his credit and debit cards at hotel. If he is lucky to win another $2,000, he may just put on a big bet of $1,000 etc. Then he may lose all of his $2k and any winners. So he is a happy and no harm is done. A smart gamer.
Sure, someone can win a total $2,000. Then smarter and walks away from the table. Had he stayed longer, casino probably would drag him out of the room.
The worst player is the one who takes $5,000 more from his credit card. Then loses all. Sure this guy would feel empty and dumb.
Success story. I do not really want to hear all that. Play lottery instead of stock trading.
Sure, someone can win a total $2,000. Then smarter and walks away from the table. Had he stayed longer, casino probably would drag him out of the room.
The worst player is the one who takes $5,000 more from his credit card. Then loses all. Sure this guy would feel empty and dumb.
Success story. I do not really want to hear all that. Play lottery instead of stock trading.