Position Size

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

  1. syd697

    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

    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.