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Gold/Mining/Energy : Position Trading in Canada -- Ignore unavailable to you. Want to Upgrade?

To: Ward Nicholson who wrote (1365)	6/27/1999 4:09:00 PM
From: keith massey	Read Replies (2) \| Respond to of 2259

Ward Watch the S/P mini contracts during the day and you will see why I want to give them a shot. This link will give you live S/P mini contract futures during the day with no delay. It will also show each trade going through commoditytrader.net Stuff I have learned so far that make S/P's look like fun. I still haven't started trading them (paper only for a couple of weeks), but have signed up for Qcharts and applied to Linddirect for a trading account. -You have two options for trading 1. Through a broker (30sec to 1 minute execution) 2. Direct to the floor connection (3-5 second execution) All of these contracts are traded on margin A single mini contract costs $50 * 1350 (S/P contract level) = $67,000 Through a broker you can get a margin where a single contract cost you around $1500-2000. If you use the direct to floor connection the margin is higher and a single contract cost you $5000. The average daily movement on the S&P minis is 23pts. The volume is incredible, 100's of trades are done each minute so you can get in and out at the blink of an eye. I read that $25 billion in dollar value is traded daily on these contracts. A single round trip on one contract costs you $15U.S. If you buy a single contract and it move 1pt you make $50-15= $35. Now do all the math. 3 contracts for 5pts = 3550 - 15*3 (commission) = $705 U.S or $1000 Can. Since they average a 23pt range and do several cycles a day you have the chance to make (or lose) a lot of money fast. I am approaching this from a very risk adverse approach with tight stops on all trades and following stops on all buys. "cut your losses and let you profits run" You go long and short the exact same. All the brokers offer stop buys, stop sells, stop losses, etc. I thought some numbers would help since I didn't have a clue until I looked into it. One more thing....they trade 23.75 hours a day!!!! The night trading doesn't have much volume but the thought of trading at 3:00A.M on sleepless nights might be interesting. They NASDAQ 100 minis just started trading on June 21 and I will be watching them close also. The currently trade with less volume than the S&P minis but could get very interesting. Comments from current S&P traders would be appreciated. Best Regards KEITH