Daytrading the SPY or QQQ...?

Discussion in 'Trading' started by DayTraderNYC, May 4, 2002.

  1. Has anyone figured out a way to profitably daytrade the index stocks? Anything wold be helpful. Technical analysis.. any software (such as Trade Station)... anything to help me trade them profitablly. Im not looking for big moves or big profits - I want to make just enough to cover my commission. Anyone?
  2. Fohat



    You can daytrade Emini S&P 500 (ES) and Nasdaq 100 futures(NQ) instead. ES = 500 SPY ; NQ = 800 QQQ.

    Benefits: Lower commissions, lower margin, more liquidity, less partial fills, tighter spreads, longer trading hours (almost 24/7), electronic execution, no middleman (Market makers etc.), unfragmented market - no routing issues, no minimum $25k daytrading requirement, no additional expenses when shorting etc...

    For example: one can daytrade 1 NQ (= 800 QQQ) , with only $1500 daytrading margin and $2.40 commission or less. While daytrading the same, through 800 QQQ, one will need at least $6000 margin and will pay usually over $6.50 in commissions.

    To sum up, it's more efficient to daytrade Emini futures NQ and ES then the corresponding QQQ and SPY.
    Many daytrade NQ and ES for a living, hence they've found a way to trade them profitably.

  3. Trading these futures is not a possibility for me since my firm does not allow futures trading. Only equities. Im just interested in learning a method to trade the SPY or QQQ's intra day. SOMEbody must be making a living doing this??
  4. tampa


    I suspect that you will be less than pleased with the answer, but anyone who understands how to trade is able to walk away with profits.

    The answer is not in a particular software, or book, but in an understanding of yourself and the markets.

    No one can provide that in a short reply on a message board.
  5. I am constantly amazed at how naive people are. No offense intended Daytrader but your question, rephrased is :" Can somebody please tell me an easy way to make a bunch of money?" If you put your question like that would you expect a serious answer?
  6. LOL...No..Im not looking for the holy grail. I do fine without the help of others as far as trading is concerned. All I was looking for was any hints others might be able to provide in trading these particular stocks...SPY and QQQ...not on trading in general.

    For example, someone suggested that I keep the list of top 10 stocks that make up those indices and perhaps that might give me a heads up. Someone else told me that he trades the SPY based on fast and slow stochastics and when one crosses the other..blah blah blah (Im not a techie so I will have to do some reading into it). Another trader who trade QQQ has told me that he uses TradeStation to look for buy and sell sginals and that it has worked very well for him. Still another had told me that he uses SPY and QQQ only when there is a major news that impacts the markets and moves the markets. These are the types of suggestions I was looking for. Nothing wrong with that there? Hopefully this posting will help someone who was seeking the same things as I was. Im simply looking for more from those who are willing to share their knowledge without giving away the farm.
  7. stevet


    the SPY pretty much replicates the futures contracts - so it does not act like a normal stock - so if u cant make money at stocks - you can forget about making money on the SPY

    the easy way to learn is to get a magic wand - but i hear that the guarantees on those things are not up to much!

    so maybe u might try what everyone else does and spend a lot of time learning - and then you can make money - funny old thing - experience - it has to be earned - it aint given
  8. limbo


    Easyrider what a peculiar answer you're come up with here to a very legitamate question??I'd like some info on this subject too. If you feel this way what's your reason chatting on ET??
  9. Limbo

    The question was, unless I am missing something, "Can anyone tell me how to trade the index stocks profitably?" I am sorry but this type of question cracks me up. From day one I never expected anyone to tell me how to trade stocks profitably. If you sit down at a poker table and ask them guys to teach you to play poker they will certainly oblige you.
  10. The reason I frequent this board is because there is lots of useful information re: brokers, software, hardware, etc. Also a good laugh now and then.
    #10     May 4, 2002