Just started trading the QQQ's for fractions. I thought it would be good training for emini.I find it really tough. It seems to move faster than the futures, and always make the bulk of a move in 3 minutes or less, I just can't never catch the move. I have to make "guesses", buy at support, break of trendline etc. and wait, can't play momentum(hate that). It wiggles a lot too like the fut and reverses sharply all the time just when it looks like it's rolling over. I don't know if I can make money consistently just trading the Q's for fractions with a dime or so stop. Anybody doing that?
I like the idea of trading the QQQs but I'm not sure about what to use as an indicator. Today I charted my basket of "Hot" Nasdaq techs and watched the QQQ follow them up and down. It was easy on paper.
I am back to the futures but I traded the Qâs for a short time. IMHO, a dime will get you snuffed, in most cases. The Q's would bounce all over while the futures tended to stay within certain parameters. Very noisy. I used a measure of volatility to set my stops and relied on futures data for decisions. I originally intended to trade off a longer TF with the Qâs but I fell back into my old style. Didnât work as well. Fills where horrible.
same experience than tymjr If your time frame is too short, slippage+commission will kill you on QQQ, even with a 1 cent commission. QQQ is only good imho for a full day swing [if you have a method for that] or longer time frames [unless the gaps kill you]. I did a test last month : system based on futures, exec on QQQ [instead of paper trader the new system for futures]. I tried to trade QQQ instead for lower leverage.. WRONG ! There are many trigger happy people with QQQ, so slippage is huge compared to the reference [NDX or Futures]. So I gave up and now I am very very happy with the futures directly [since the system was OK]. Again, it does not mean you can't trade QQQ. of course you can. but when you take into account slippage and commission only. then you will be forced to have longer swings. QQQ will be great when a new trend will be there in Nasdaq [up or down, I don't care]. then you can go for the long term wealth building long or short. that's the best way to use QQQ, not income [use futures for income trading]. that is my opinion, and I changed my mind 'cause I used to think otherwise. but reality was very clear or I was just not cut for it [several on this forum say the same though!]. neo
If you're interested in trading the Q's, you should check out Don Miller on tradingmarkets.com. He daytrades them on a 3min time, with 1 min & 13 min charts as well. However, he just trades them off NQ charts, no QQQ chart. He uses various entries ie MA crosses and Bollinger band extremes and pullbacks on 1,3,& 13 min trends. He also looks for stoch divergences as confirmation. He also has an educational site @ thetradingcoach.com and he trades live on PalTalk during the day. He makes no trade calls, just talks to the signals and will sometimes talk about his trades. I was in the chat room for several months, but was unable to get it going (have'nt been able to anywhere yet). I think that he still offers a free trial period and he will provide proof of his trades as well. Anyway, it's just something that you might want to check out. kempo
just my opinion obviously: cubes are way to slow and choppy for my taste. The liquidity is simply amazing but it just doesn't move!! And when it does move it lurches back and forth. Ofcourse, I'm comparing it to other stocks out there that to me are a lot more simpler (like VRSN, QLGC, etc)
I agree Babak. You probably need to swing the cubes for a few hours to a few days to make decent money on them, unless you are trading several thousand shares for a quicker move.
Il like the idea of trading the Q's, first I am gonna have to trade the eminis soon, so I think the Q's give me a good feel of how Nasdaq Futures trade. I don't want to get killed when I make the switch (I think the new SEC rule will have potentially disastrous consequences with small traders trying their hand at the futures). But anyway I am starting to think in these days it's easier to trade the Q's and go for a point or more per day rather than trying to swing for the fences with individual stocks . I also trade the VRSN, QLGC, EBAY, HGSI, EMLX etc. often the Futures will start moving and these stocks just don't do anything or they move 50 cents and then they shake you out. A mistake with VRSN or QLGC it means for me a loss of 25- 50 cents, with the Q's it's 10-15 cents. The only problem I have is I don't know what my percentage of losers will be with the Q's. Also it's easier to trade one vehicule day in and day out. IMHO You can do it with a stock too but they change personality after a while and you have to find another one. The Q's are not slow at all, I find extremely difficult to catch a move, I think the only way to go is having some kind of a system and trade whenever you have a signal, momentum break out that I do with stocks is too fast for me with the Q's, because it already trades too far from a safe entry point. Yes I thought about swing trading the Q's with options but I have never traded options so I am learning everything I can about options trading first.