EFTs

Are EFTs immune to the daytrader rules?

Can someone give me advice as to which EFTs/futures are good to swing/daytrade trade with a small account($5000).

My thinking right now would be to swing trade 100 share lots of sector based SPDRs or QQQ. Any recommendations are welcome.

I do have a fair about of experience trading currencies...with success. I would like to branch out to other markets slowly.

STAQ

 

Hello Staq,

They are ETF's (Exchange Traded Funds) not EFT's. I started out trading SPY (I now trade ES). as far as what to trade, I guess it depends on your goals. If you want to daytrade then SPY or QQQ might be a good start. Especially if you want to eventually switch to there derivatives (ES And NQ).

Good Luck

 

I think the SPY would be too much $$ for my account size that I just opened at IB. Correct me if I'm wrong, if I bought SPY 100 shares at 108.30 (todays price) you would need with approx 5400+ using margin. I opened the account with 5k

 

There is no easy way to get it down. You're gonna lose $$ no matter what, PERIOD. :-/

 

What about the PDT rules when trading ETFs? I can't find anything in regards to this issue. I assume that they fit under the stock PDT rules?

Are there any futures contracts that would fit the bill as far as working with a smaller account. I'm aware of the NQ and ES but even the mini's seem too big, at least to start out.


thanks
STAQ

 

you are b/w a rock and a hard place :-/

 

Got that right... Wall Street does not want the little guy getting
into the aciton... They are big fat greedy pigs... :eek:

 

try the SMH. it is one of the lowest priced etf and it is volitile so you can try to swingtrade the moves.