trading the emini snp.

Discussion in 'Index Futures' started by adam.versano, Nov 25, 2009.

  1. Hi, I have been trading the EMINI SNP for quite a while. focusing on trend lines, divergences and support/resistance.

    been making and losing money. overall, learning every day and coming up with a manageable strategy.

    I have a very simple question. I am yet to find one person that makes a living day trading. if you are out there. can you please respond to this thread and provide some information? I am neither looking for a guru nor an easy way to do that. I just need to know that it's doable.


  2. FXPimp


    its doable. ive been trading successfully for quite a few years now. its no easy task and has a very high failure rate, but it you give yourself enough time to succeed and can manage your risk properly, then you can have a shot at it.
  3. From one trader to another, I have to tell you the best decision I made was to stop trading the S&P mini altogether.

    There is too much noise and confusion in this product. The big moves are heavily overshadowed by all the shakeouts.

    I would advise anyone new to trading to stay away from the S&P mini and look into currencies instead.
  4. ajtixs


    I find it hard to believe that the most popular index in the world is the worst trade? I'm new to trading but it seems that the S&P offers a lot of opportunity. Are you talking about avoiding it for scalping or swing trading?
  5. Well, since over 90% of retail traders lose 100% of their money, it isn't really all that hard to believe.

    Popular or not, it offers good exposure to the equities market and nothing more. It comes with all the indecision of the stock market and can be very choppy.

    I wouldn't recommend scalping at all as a new trader. Swing trading is a strategy best left for investing. If you are looking to make a living trading then intra-day trades are the only way I see to do it long term.
  6. ajtixs


    OK. Thank you for your insight.
  7. The ES is like any other market ... you have to study it day in and day out for a long time to get a sense of its quirks and habits. Not that after such a learning period you'll ALWAYS know what's going on, but if you study it diligently and with purpose (i.e., not just passively watching it and hoping to magically acquire the holy grail by osmosis) you can come up with some basic strategies to work with.

    I'll admit though, it can be extremely unforgiving at times. The biggest drawback to trading ES imho is the high cost of slippage due to the large tick size. It's kind of a beast in that regard. But like any other beast, the best way to approach it is armed with a deep understanding of its habits.
  8. You might check the book out referred to in this vid:-

    The trader in the video is in the book - an example of a day trader making money, but not by trading the es minis.