Small traders (>15k) !!!!

Discussion in 'Trading' started by andrasnm, Sep 27, 2001.

  1. http://biz.yahoo.com/p/tops/43.html

    This is a list of returns for the last 3 month...

    These are index (leveraged !!!) funds of the naz and sp.
    You can trade these with 15k. low expenses, no commission.
    on leverage you have no margin costs.

    If you trade with 15k and only trade futures your chance of making it is MUCH LESS than trade these funds. Most who use these are professional money managers (small hedge funds) and rich folks. Rich folks don't daytrade !!! Ever wondered why ???????
    I would caution all of you of trading futures on a shoestring !!!
    Trading these is actually *like* trading index futures !!!!!
    profunds minimum is 15k.
     
  2. pete180

    pete180

    hi,
    how does it work ?
    i'm with IB now, can I trade these funds with IB ?
    thanks
    pete
     
  3. There are two funds that have leverage and short index
    Rydex (the king of pro funds) and profunds. Some brokers
    will allow to trade these, but will impose fees (to switch). For
    info go to Rydex web site www.rydexfunds.com for a list
    of brokers allow fund trading. The specifics of these brokers
    is different as the "imposed holding period and fee structure"
    The funds themselves impose no penalty for switching, Rydex
    and profunds that is. The problem with the brokers is that
    they have early cutoff for switching (1 or 2 hours before the
    close and there is a commision :D ).
    Trade with a broker is trickier, but also a possibility to a small trader. I prefer to trade with profunds where one unit (read one buy minimum is $15k) plus you get the leverage.
    My thinking is this, if you are good at profunds for a year, like
    you make some money - why not switch to futures later ?
    You don't trade these funds daily, traders get paid to take some
    risks. %90 in three months is pretty good pay for taking some
    overnight positions (and being right)
     
  4. vitajex

    vitajex

    With profunds, if your account falls below 15K, do you
    have to deposit more before you can place another
    fund trade?

    -v
     
  5. I have a over 15K with them. I am sure you can keep your
    account but if you cash out i.e switch to MM you may not
    get back in to short or long unless you deposit more.
    best to call them and chat.
    Notice, add ons are lower and IRA is way lower.
    First if you play these and you only have 15k you would be
    cutting close unless you time it dead on. For accounts like
    that a broker (mutual fund supermarket) could be the answer.