|
A Day Trader's Paradise:
Day Trading The E-Mini S&P 500 and Dow Jones Industrial Average Indexes!
With the extreme volatility in the stock market, its
no wonder day trading is becoming increasingly popular with investors!
Every day is a whole new world of opportunity without the worries,
surprises and risks associated with holding a position overnight and
having the market move sharply against you. And with volatility at
phenomenal proportions, the environment is ideal for day traders, who
relish in sharp up and down movements of a market. All you have to do is
watch the E-mini S&P trade and you'll see what we mean! 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
almost instantly?
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
$5!
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 $3,900. ($500 day trading margin for qualified
investors)
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 $2,000 ($500
day trading margin for qualified investors), and you could routinely
expect to receive your fill prices in about 1 second!
CONTRACT SIZES
|
Specs |
DJIA Futures Contract - Large 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 |
$4875 |
$3,938 |
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
Trade through an online trading platform or with the help of a
broker. If you prefer to electronically trade on your own, through the
Internet, the state of the art trading platforms allow 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 less than a second! This is almost
instant execution and reporting of your fill price-vital for day
traders! You 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 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.
FREE STOCK INDEX TRADING KIT
Please fill out the form below completely in
order to expedite your request. Fields marked with a * are required. |
