Benefits Of Trading Emini Futures - Part 3
February 22, 2013 at 7:36 PM (QQQ)(DIA)(SPY)(GLD)(BAC)
THE BENEFITS OF TRADING EMINI FUTURES - PART 3
This will be the final installment of the "Benefit" series. In Part 1 we covered:
- Liquidity - A traders dream.
- Pattern Day Trading - No $25,000 minimum account balance required.
- Daytrading Margins - For the indexes - $500 per contract intraday.
- 100% Electronic Market - No market maker, no middlemen, first in is first out.
- Taxes - Futures contracts receive tax advantages, check with your CPA.
In Part 2 we discussed:
- Commissions - Your cost of doing business averages $7 per round turn.
- Spread - Razor thin, 1 tick in most cases.
- Research - No more homework.
- Options - If you like them, you can still trade them.
- Selling - Being short the market is as easy as being long.
As we wrap up the "Benefits Package" of being an Emini Futures Trader, keep in mind we've only covered the good stuff. Common sense tells us there must be two sides to every coin. As soon as I find the other side, I'll post it straight away.
If you find it first, use the comments section below or email us support@cfrn.net .
So what's left?
Simplicity - Stock Traders typically watch a basket of stocks. Some watch five while some watch 50. If you understand the concept of multiple time frames, you know you need to keep an eye on at least three time frames per instrument traded. If your basket has 50 stocks, that's 150 charts to monitor. On the other hand, trading the S&P 500 Emini Futures allows you to trade a basket of 500 stocks by watching only one chart. If we allow for the multiple time frame aspect, you now have three charts in front of you. If you were even fairly good at monitoring 50-150 charts, how good might you become if your entire universe were suddenly reduced to focusing on just three charts. That's right - 500 stocks - 3 charts. Simplicity...
Focus - (see Simplicity)
Retirement Account - IRA? 401k? When you exit a stock trade, you will usually wait three days for your funds to settle before you can redeploy the cash. Not so with Emini Futures. The second you exit the position, you're locked and loaded, ready to take the next trade.
Open For Business - Still working the day job? Some stocks trade after hours and pre market on a very limited basis. Futures however, trade from Sunday afternoon until Friday afternoon. There are 2 short periods a day when Futures close to allow the barkeep to clear the tables and wash the glasses. Other than Friday night, Saturday, and early Sunday, it's a 24/6 market. Asians are hammering the Emini's at 2AM EST, the Europeans are cranking it up at 5AM EST and of course Wall Street waltzes in at 9:30AM EST. Whether you're still working the day job or just prefer working at night, Emini Futures are open for business when you're ready to trade.
Contracts Never Expire Worthless - Emini contracts never die, they just roll over. Unlike Options where (n)% of contracts expire with zero value the third Friday of every month, this never happens with an Emini contract. When the front month changes, unless you exit your position, your broker will roll you forward into the next contract month.
Guaranteed Fills - If you're trying to buy 1500.00 on the S&P and there is even 1 tick at 1500.25, you know you are filled. It's a pure electronic market (FIFO), so the only way price can tick up to 1500.25 is if every order in the queue at 1500.00 is filled. You'll never sit there wondering if you got filled. Watch the DOM, the proof is in the tick. No market maker, no monkey business.
I hope this 3 Part Series has helped to answer your questions as to why legions of traders are leaving equities to trade the Emini Futures Market. I would love to personally answer any questions you still have and I would like to personally invite you to take our 5 Day Free Trial.
- Download our platform.
- Install our proprietary indicators.
- Watch us trade live with real money 2 hours a day.
- Ask lots of questions.
- At the end of 5 trading days, make a well informed decision.
Trading's Not Easy - But It Can Be Simple!
(with Emini Futures)
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A lucky CFRN Partner will win a brand new -
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You can even trade from this baby, but I have to keep that a secret for at least another week. So ssshhhh!!!
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