Monday, April 24, 2017 8:09:53 AM
Sweet timing... trade 'em if you got 'em
Say you had a futures account and there was $2000 in it. To get started using the FLO trade Swing Trading Method and to understand a bit about how futures work, follow the example below. It is using Yesterday's and today's market prices for this month's trade.
FLO trade for April – Last Monday of every month entry
Entry Rule – add 10% of the previous session's range to the new session's opening price and place your order
Say you made a purchase of 1 contract at the start of Monday's session on Sunday night 6:00 PM.
What you did was “open” a 1 contract position – you bought 1 contract at 2366.
Say you only wanted to risk $100 on the trade. You would need to place a stop-loss at 2364.
Done...
You have a position that's fully protected from a large loss in case the market retraces heavily.
Your futures account's buying power would be reduced by $500 (initial margin) and your account reduced to show $1500 remaining. If your stop-loss gets filled, you account would be credited with $400 (initial margin less your $100 loss) and immediately show a buying power balance of $1900.
Go to bed....
Wake up, have your coffee and check on your e-mini position...You discover it rose 10 points to 2376 while you slept. It's only 7:00 AM and the session will continue to be open until 5:00 PM, but you decide to exit your position now...So you sell 1 contract to close it out.
Immediately upon selling, your account balance now shows $2500, which is the return of your initial minimum margin ($500) plus your profit on the trade ($500).
That was sweet.
Your current broker may also offer futures trading to their customers. They will require separate funding and margin applications to create futures account for you. You can transfer a small amount from your main equity account, say $2000 to get started (or less) and fill out the margin forms online...Done – you can now trade the e-mini markets...
Say you had a futures account and there was $2000 in it. To get started using the FLO trade Swing Trading Method and to understand a bit about how futures work, follow the example below. It is using Yesterday's and today's market prices for this month's trade.
FLO trade for April – Last Monday of every month entry
Entry Rule – add 10% of the previous session's range to the new session's opening price and place your order
Say you made a purchase of 1 contract at the start of Monday's session on Sunday night 6:00 PM.
What you did was “open” a 1 contract position – you bought 1 contract at 2366.
Say you only wanted to risk $100 on the trade. You would need to place a stop-loss at 2364.
Done...
You have a position that's fully protected from a large loss in case the market retraces heavily.
Your futures account's buying power would be reduced by $500 (initial margin) and your account reduced to show $1500 remaining. If your stop-loss gets filled, you account would be credited with $400 (initial margin less your $100 loss) and immediately show a buying power balance of $1900.
Go to bed....
Wake up, have your coffee and check on your e-mini position...You discover it rose 10 points to 2376 while you slept. It's only 7:00 AM and the session will continue to be open until 5:00 PM, but you decide to exit your position now...So you sell 1 contract to close it out.
Immediately upon selling, your account balance now shows $2500, which is the return of your initial minimum margin ($500) plus your profit on the trade ($500).
That was sweet.
Your current broker may also offer futures trading to their customers. They will require separate funding and margin applications to create futures account for you. You can transfer a small amount from your main equity account, say $2000 to get started (or less) and fill out the margin forms online...Done – you can now trade the e-mini markets...
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