Position Size

Discussion in 'Trading' started by syd697, Jan 31, 2003.

  1. syd697


    Don't know if anyone cares, but here is a little tidbit that may help with your trading size of the e-mini futures. I think most retail traders go with 1 lots of the e-minis, and some may feel that is still too large of a position. If you are using a 3 or 4 point stop-loss on the ES, that will be a loss of $150 - $200. Similarly, a 10 point stop-loss on the NQ will also be $200.

    You can trade the QQQ's or the SPY's as a substitute for the NQ's and ES's respectively. 800 shares of the QQQ = 1 NQ e-mini future, and 500 shares of the SPY = 1 ES e-mini future. You can trade whatever size you want in the QQQ's or SPY's and take it from there. A 1/4 position of the NQ will be 200 shares of QQQ, and 1/4 position of ES will be 125 shares of SPY.

    Using these substitutes as a smaller size trade can help build confidence and not expose yourself to too large of a loss if you hit your stop-loss. Good for beginners. I sometimes use them when I feel a move is imminent, but don't want to get knocked out too early as is the case many times when trading the e-minis.

    Take it as you will. Good luck all.
  2. Great advice.
  3. GD2KNO


    Never though about it before, and may use them as position trades to augment my daytrading when I feel a good move is underway.