A Day Trader's Paradise:
Day Trading The E-Mini S&P 500 and Dow Jones Industrial Average
Indexes!
Many if not most investors
have opinions when it comes to forecasting market direction. Day
trading affords them the ability to capitalize on those opinions,
whether by the minute, half hour, hour or day. But now, with fewer
and fewer stocks participating in the bull market, it’s getting more
difficult to find the "hot" stocks. The slimmer pickings are
exacerbated by an increasing tendency among the high fliers to grow,
only to crash and burn just as quickly. Narrow leadership and sector
rotation can make selecting winning stocks about as sure a bet as
finding that proverbial needle in the haystack. However, wouldn’t it
be a lot simpler and easier if, instead of trying to mimic "Houdini"
by conjuring up that one "hot" stock, one could increase one’s odds
of success by simply trading the Index itself on the NASDAQ, Dow
Jones Industrial Average (DJIA) or the S&P 500?
And have the
ability to enter and exit those markets in approximately one
second?
AN EXCITING ALTERNATIVE
Instead of paying thousands of dollars in commissions
and having to put up a fortune to buy all of the stocks in
the NASDAQ, Dow or the S&P 500, wouldn’t it make perfect
sense to participate in all the stocks comprising the NASDAQ,
DJIA or S&P 500 for a commission of under $10!
This is now possible because of the DJIA, NASDAQ,
E-Mini and E-Mini S&P 500 futures contracts introduced by the
Chicago Board of Trade and the Chicago Mercantile Exchange. For
example, in the E-Mini S&P 500 traders can participate in all the
stocks of the S&P 500 with a margin deposit of approximately $3,563. (Or $500 per contract day-trading for qualified accounts)
Day trading margins are usually only one-half the
amount required for a position held overnight. If you were day
trading, you would be participating in all the 500 stocks in the
E-Mini S&P Index for a margin deposit of only $1,700, and you could
routinely expect to receive your fill prices in under 5 seconds! (Or $500 per contract day-trading for qualified accounts)
CONTRACT SIZES
|
Specs |
DJIA Futures Contract
|
E-Mini S&P 500 Futures
Contract |
|
Size |
10 times the DJIA. If, for
example, the DJIA is trading at 10,000, the value of the futures
contract is $100,000. |
50 times the S&P 500 Index.
If, for example, the S&P 500 Index futures contract is trading
at 1,400.00, the value of one contract is $70,000. |
|
Movement Value |
Each point in the futures
contract is equal to $10. For example, a move in the DJIA
futures contract from 11,000 to 11,100 equals 100 points x $10,
or $1,000. (Each one point move in the DJIA stocks is
approximately equal to a one point move in the DJIA futures
contract.) |
Each 100-point move ("handle")
in the E-Mini S&P 500 futures contract equals $50. A two
"handle" move from 1100.00 to 1102.00 equals $100. A one-half
"handle" move from 1100.00 to 1100.50 equals $25. |
|
Margin |
$4,875 |
$3,563 |
The relatively small size of these stock indices
futures contracts permits investors with modest amounts of risk
capital to participate in the Dow and S&P 500—and at a fraction of
the cost of purchasing the actual stocks outright!
BIG ADVANTAGE
Most day traders of stocks play the market only from the up
(long) side. But, with the E-Mini, NASDAQ, S&P 500 E-Mini and DJIA
futures contracts, traders can just as easily play the market from
the down (short) side, too. This adds an entire new dimension of
opportunity for day traders.
ACTIVE DAY TRADING
With the sharp up and down moves in the NASDAQ, DOW and S&P 500,
there are often ample trading opportunities to play both the long
and short side of the market several times a day.
ELECTRONIC DAY TRADING
If you prefer to electronically
trade on your own, through the Internet, our state of the art trading platform allows you to place and receive your E-Mini NASDAQ and E-Mini S&P
500 and Dow Futures fill price in seconds. From the time you place your order, you
can typically receive your fill price back in seconds!
This is almost instant execution and reporting of your fill
price—vital for day traders!
WIRELESS TRADING
Adding to the
versatility in day trading the E-Mini NASDAQ, S&P 500 and the DJIA
futures contracts is the option of trading wireless from a laptop
computer! You can almost instantly connect with our state-of-the-art
Order Entry System. You then can receive live quotes,
keep track of your account, transmit your order and receive your
fill confirmations in seconds! Now, whether you are at a party,
golfing, in your car, at a sporting event, or virtually anywhere,
you can day trade as conveniently as though you were sitting in your
office or home! Past performance is not necessarily indicative of
future results. Transactions in futures carry
a high degree of risk. The amount of initial margin is small
relative to the value of the futures contracts so that transactions
are leveraged. A relatively small market movement will have a
proportionately large impact on your account. This could work for or
against you. You could lose more than your initial investment.
SUMMARY
The E-Mini NASDAQ, E-Mini S&P 500 and the DJIA futures contracts
provide an exciting, highly versatile, efficient, and economical
means of capitalizing on the daily swings in stocks. In day trading
the E-Mini NASDAQ, E-Mini S&P 500 and in DJIA futures contracts,
traders can focus on an entire basket of stocks at a fraction of the
cost of commissions and avoid the expense of trading many individual
stocks. At the same time, traders can capitalize on both rising and
falling markets. There is no longer a need to tie up large sums of
money purchasing stocks! And, with online futures trading, you can trade through the
Internet and receive your fill prices back in seconds. In day
trading, you know exactly where you stand at the end of each day
without the risk inherent in holding positions overnight. When day
trading, each day represents a whole new world of opportunity! Once
you learn more about the many advantages of day trading the E-Mini
NASDAQ, E-Mini S&P 500 and the DJIA futures contracts, you may not
want to day trade individual stocks again!
FREE INVESTOR'S KIT
Learn more about the E-Mini NASDAQ, S&P 500 and the Dow Jones
Industrial Average Indexes in our free "Stock Indices Trading Kit."
Easy to read and highly informative, the kit contains practically
everything you need to understand and trade the E-Mini NASDAQ,
E-Mini S&P 500 and the Dow Jones Industrial Average Indexes! Some of
the valuable free brochures you’ll receive in the kit:
- E-Mini Contract Highlights
- E-Mini S&P Futures & Options at the CME
- Questions & Answers on E-Mini S&P 5000
Futures & Options
- E-Mini NASDAQ 100 Futures
- Contract Highlights
- E-Mini NASDAQ 100 Q&A
- Statistical Data
- Facts On The Dow Jones Industrial Average
Futures and Options Contract
- Dow Jones Industrial Average Futures & Options Introductory Strategies For Individual Investors
P.S. As an added benefit, you can save up to
30%; in taxes on profits, in trading the stock index futures
compared to outright stocks (positions held under one year)
Please be aware that trading futures contracts
involves the potential for unlimited risk. |
Trading
Futures - Emini and Dow