Ah Holy COW!!!!
OK, now I got you all excitable I guess! :)
i bet i can trade this just like a stock, period!!!
In most respects, I think yes. However, the leverage part of the equation makes it different.
using time's of day for drawn lines no???
what i mean is...at the open, watch the action for the first 30-60 minutes...then draw trendlines for tops and bottoms of that time period...
then we get supports and resisitances...using a 10 minute or some such, i could set up alerts using the real numbers that the mimi hit...sound possible???
Yes, I would think that is possible, although I am not sure I fully understand what you mean...but that is OK.
i do this for the nets...like CMGI...i already know historical data via P&F...supports/resistances...using historical data....
now i trade this stock based on my read of those charts and patterns..
can you use this for the mini???
Yes, I do believe you can. Everything is support and resistance, in the end, isn't it? The mini or SPOO has support and resistance levels and each of us have our own methods of finding where they are. Take what you know from CMGI and try it out on the mini with some paper trading and see how you do. If it looks like it might work, then set-up a paper trading test period and really give it a go on paper. If it continues to work...you might be ready to try it live.
and have you traded both a positional trade, more of a directional trade and a daytrade at the same time...
example, we came form the depths of despair, to the top of the heap, using mostly position trades...
I have not done both at the same time, but I have done both. I do believe it is possible to do both successfully. For example, let's say my system goes long and I go long one mini at 1320. At 1330, I get a short signal and short one mini. My net market position is now flat. However, I cover (buy one mini) at 1326 on my short trading position. Now I am long one at 1326. I just made four points on the short and still have my positional trade long. It can work doing both, as long as you treat the day trade short as a live short and not a flat position. You have to buy it back. If the market goes against you on the day trade short, buy it back at 1334 or whatever, now I have lost 4 on my day trade short, but am still long positionally. See what I mean?
how long can you hold a position, and are there margin calls??? or how does this work...what i mean is if i buy a stock and it's underwater i can hold it till whenever...i know i would be trading something like the June contract let's say..but i could hold this if i was down, right??? of course i could, because i could hold it till the cows come home, if i was long...hmmmmm, what a dummy...
You can hold a position as long as you like as long as you remember two rules: 1) your net account balance cannot fall below the required margin maintenace figure (yes, there would be a margin call if a position moved against you and your balance fell below the required maintenance margin) and 2) you remember to roll the contract each quarter when the front month changes.
the e-mini and the S&P's trade eactly like a stock, period...no different...right???? why am i trying to think that it's different...it's absolutley not!!!!
I think the major difference is in the margin requirements. One S&P Mini controls the equivalent of (I tried to find the exact numbers, but cannot...so this is off the top of my head) $50,000 of stock. The intial margin is about $3,500 to $4,000 and the maintenance margin around $2,500 or so, if I recall. What that means is if you had a $4,000 account you could buy or sell one e-mini. If the position moved 30 points (30 points times $50 per point) against you your account balance would be $2,500 or right at the maintenance level.
and then the use of stops would negate any real damage, unless i felt it was just a blip along the way of my directional trade...
Stops would be necessary in my opinion, although I am certain that others would disagree. You cannot stay with a position that you think is right, if the market tells you otherwise....in my opinion. If you are so certain, then get out let the market do its thing and get back in at a better level.
GZ, does it a bit differently I think. He buys when everyone is puking up their gutts so his downside risk is normally somewhat limited in the normal course of things. Then as long as he believes the trade is correct, he stays with it all the way back to near his buy point at which point he will exit and hopefully/usually take the position again, but with a better price. You have to find what works for you......nobody's approach is perfect for everyone.
Just remember losses accumulate quickly, even on the mini. Heck, the trade yesterday morning from 1350 to 1330, 20 points in about ten minutes or so if I recall correctly was a $1,000 loss on one long emini. On the large it was a $5,000 loss in the same time frame. Greenspan's famous interest rate hike was much worse that that little blip if you were on the wrong side.
ah ha!!! maybe i could just give someone my money, and forget about it...hehehehe
If you have a system, there are brokerages that will trade "your system" for you and you don't have to do anything....... |
