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Emini Trading : Weekly Video Update 9/30/2011

Hi all. What a FANTASTIC emini trading week! We worked on average of 20 minutes a day this week. That’s less than a 2 hour trading week for 8 + points profit! I get a lot of questions about how many contracts an individual can trade.

Well it’s up to the trader, and his or her financial situation. A trader with a 100K account may trade 30 – 40 contracts whereas a trader with a 10K account may only trade 3 or 4. Of course, with day trading margins at 500 per, you could easily trade way more. So why NOT trade more? Good question, easy answer: Over Leveraging is not good! If you have a 10K account, yes, technically you can trade 20 contracts. Multiply 1 point profit per day (or 2 points for the norm lately) and you can see that you can get your 10 K back REALLY QUICK.

However, what if you take some losing trades? You know you CANNOT win all your trades, right? Right! So if you take a couple losers, you can very quickly put a major drawdown on your account! Not a good idea!

I prefer trading at 3500:1. For every $3500 in equity, I trade 1 contract. Using my margin numbers a trader with say a 50K account could safely trade 14 contracts. Looking at this week’s gains: 14 contracts times 8 points – $5600 gain before commissions! Not too shabby. Sure the results could have been more phenomenal if the 50K account trader over leveraged to say 30 contracts, but it’s simply too aggressive and not a good idea.

I err on the side of caution.

Well here is the Emini Trading Weekly Video Update – and enjoy your weekend.

EminiTradingStrategies.com Weekly Video Update 9/30/2011


Oh yeah – don’t forget our Webinar this Tuesday night at 7PM Eastern where I will go over our ES trades as well as show you how ProV2 can be used on other markets as well!

Cheers!
ETS

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This entry was posted on Friday, September 30th, 2011 at 4:14 pm and is filed under Emini Trading Weekly Update 9/30/2011.
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