Do I need trading experience or special education?
The SP E-mini has more profit potential and is a better trading vehicle than individual stocks. First, stocks do not have much price movement during the day.
Secondly, the SP Emini allows you to specialize in one thing instead of jumping around between stocks and their different nuances -- and the S&P E-Mini gives you more bang for your buck. This is because the SP Emini requires less upfront money than do stocks.
You only need as little as $500 to day trade one e-mini futures contract -- which is called day margin. The S&P 500 E-Mini contract currently has a value around $89,000 but to trade it you only need $500 margin per contract.
To trade $89,000 worth of a stock you are required by law to have 50% down or $44,500 --- obviously a huge difference.
The Value Of Each S&P Emini Point - $500 Day Margin - Emini Contract Rollover and Expiration.
Facts About The S&P 500 Emini Futures Contract
Definitely not. All you need is normal intelligence and a little common sense. You must also have patience and discipline.
Make no mistake though -- this trading course is also designed for experienced traders whose success has been somewhat limited.
The Emini SP is the smaller version of its "big brother", the standard S&P 500 futures contract. The Emini SP is one-fifth the size of the standard contract. The "E" in Emini stands for electronically traded and the "mini" means the smaller version of the standard contract.
Each full point of an Emini SP futures contract is valued at $50.00. The price of the Emini SP moves in one-quarter increments of $12.50. Each of these one-quarter movements is called a "tick". Three ticks, for example, would equal $37.50 ( 3 x $12.50 ). If the Emini SP moved 3.50 points, it would equal a move of $175.00 ( 3.50 points x $50 per point = $175.00).
The current price of one Emini SP contract is around 1780 points. That means the current market value of one Emini SP contract is $89,000 (1780 points x $50 per point). For you to daytrade an Emini SP contract you are only required to put down a very small percentage of the current value of the contract.
The amount required, which is similar to "margin", varies among brokers but could be as low or even lower than $500 per contract. You therefore can control an asset currently worth $89,000 by putting just $500 down.
It is exactly like a business and you must treat it like a business. Most traders are unsuccessful because they don't treat it as a business. They may have some success in the beginning but then become careless and greedy and end up losing.
The inherent nature of Robert Jack's trading method is to only take high probability trades -- this lessens the odds of getting in trouble and makes you more disciplined.
The Emini SP futures contracts expire on a quarterly basis in March, June, September, and December. The trading symbols for 2014 are ESH4 for March; ESM4 for June; ESU4 for September; and ESZ4 for December.
There can be more than one of the above contracts traded at the same time. For trading purposes though, we are most interested in and only trade what is called the "lead" contract. The current "lead" contract is the March 2014 contract and that is the one we would be currently trading.
Normally, the last day that we trade the current lead contract is the Wednesday before the second Thursday of a contract month. The last day to trade the March 2014 contract therefore would be March 12, 2014. The first day that we trade the new lead contract is therefore the second Thursday of the contract month.
The day that we start trading the new lead contract is called "rollover day". Rollover day to the June 2014 contract would be March 13, 2014. Exception: If the 1st day of a contract month falls on a Friday, the first Thursday of the month would be rollover day.
Copyright 2003 - 2013 Robert Jack's Consulting . All rights reserved.
What is the difference between day trading the S&P 500 E-mini and day trading individual stocks?
What exactly is the S&P Emini?
The E-mini S&P 500 (Emini SP) Index futures contract is a trading vehicle offerred by the Chicago Mercantile Exchange (CME). It is based upon the 500 stocks that comprise the S&P 500 Index.
The price of the Emini SP closely follows the price of the S&P 500 Index. The S&P 500 Index is composed of 500 large-cap United States stock issues and is regarded as the premier barometer of the U.S. stock market.
The Emini SP is a perfect and economical way in which to trade 500 of the largest and most important U.S. stocks.
Contract Expiration - Rollover Day - Lead Contract
After completing Robert Jack's S&P Mini Trading Course, what is the best way to get started?
You must proceed very slowly. We recommend that you at first only "paper trade" (fake money) using real time price data and charts. This will give you invaluable experience and confidence without risking any money.
When you start trading with real money, it is probably best to start with one S&P E-Mini contract. This will get you accustomed to placing live orders and increase your confidence level. Only when you gain more experience should you gradually increase the number of contracts.
After I buy the course, do I get any support?
Absolutely. For as long as you want via email, you will receive unlimited support in answering your questions regarding the methods and strategies as taught in Robert Jack's S&P E-Mini Trading System.
Is day trading the S&P E-Mini like having a business?
Does the S&P Emini market have to go up to make a profit?
Definitely not. That's the beauty of trading the SP E-mini. You can make money whether prices go up or go down. Actually selling (short) the SP Emini (hoping for prices to go down), seems to be more profitable than the buy (long) trades.