Current Emini Environment?

Discussion in 'Index Futures' started by TraderJoe08, Jan 14, 2009.

  1. If you had 5k would you put it in the futures market?
    *consider not being a newbie to the markets

    Just curious, i have 5k and want to start trading but if the environment is shitty i'll sit on the sidelines.

  2. ER9


    yes i would go long oil. lots of tempting stock as well though. hard call atm. both markets look equally good to me right now. less taxes i guess for futures gain might be deciding factor?

    depending who your broker is though...5k might not get you much buying power in futures...
  3. Open e cry has a 5k minimum initial deposit with under 1k day trade margins on futures so i was thinking about that.
    Probably looking at the NQ as my account would be so small.

    I mean i'd be trading 1 contract only obviously, so fills are not that big of a deal.

    I'm just more curious about what veteran futures traders think about current market situation for a small trader.
  4. What would you consider a 'shitty' environment for trading a particular instrument? This is not a smart-ass question, I'm asking you seriously. I think the answer to that question will provide a hint as to the answer to your main question.
  5. There's never an absolute perfect time to trade, esp since you didn't explain how you will be trading...

    1) Markets are always changing, so good luck trying to time when to start trading.

    2) If you are looking for an excuse not to trade, then don't trade. I can't help but think asking how you did is simply looking for a reason to validate your really not wanting to trade.

    3) Markets change by the day so if you are a trend trader, then it might be a good time to start; if you are a reversal trader, it might be a good time to start. It might be best to start on Mon or Fri or any day in between.

    In the end beauty is truly in the eyes of the beholder. There's plenty of opportunities every single day for some traders. And also plenty of losses for others.
  6. ZackW


    Futures markets are risky. Yes there is tons of profit to be made using very little margin equity, but there is a tremendous downside to trading with such little margin equity.
    The first of which is drag down, the market fluctuates greatly in this type of market and positions that probably will work can very easily go far enough against you to initiate stop losses with a very low tolerance for risk.
    The second of which is Psychology... loosing $50 may be meaningless in your everyday life, but loosing 1% of your account value is a pretty big hit!

    The only answer to both of these problems is more money... so my suggestion would be either don't bring your last 5k into the market, or make sure you have some backup set aside, or utilize some of the software available on the market to help guide your trades....
  7. It's best to sit on the sidelines until they start giving money away.
  8. Shagi


    If you know what you are doing 5k is plenty, if you dont know what you are doing 50k is not enough.:D
  9. Thanks for all the responses.

    I can see how the question i asked seems rather skiddish on my part and overall is poorly communicated.

    Pherhaps i'm just looking for success stories of people who started out with 5k and never looked back. I'm looking to trade the NQ because it's not as heavy $/.25 as the ES.

    FWIW i have traded forex since 2003, on a small scale granted but at the end of the day i know what it feels like to have $ on the line and that emotional control is paramount.
  10. Shagi


    Its only you that answer that, question. If you are looking for re-assurance if $5k is enough then probably you fall in the category of those that dont know what they are doing. No offence just think again why you would want assurance from ppl on this site. Anyone can give you any number to make you happy.
    #10     Jan 15, 2009