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Day Trading Futures for Daily Income

Day Trading Futures for Daily Income. Ryan Nocera r yan.nocera@gmail.com. Topics include. Benefits of Trading Futures Differences between futures, forex, and equities Best time of the day to trade futures Some of strategy and risk management ideas. “E-MINI FUTURES”.

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Day Trading Futures for Daily Income

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  1. Day Trading Futures for Daily Income Ryan Nocera ryan.nocera@gmail.com

  2. Topics include • Benefits of Trading Futures • Differences between futures, forex, and equities • Best time of the day to trade futures • Some of strategy and risk management ideas

  3. “E-MINI FUTURES” • Electronically traded Futures contract • Represent a portion of a larger futures contract • It is an agreement to buy or sell the underlying at a future date • Largest among these is the E-mini S&P 500

  4. Benefits • Traded 23 hours/day • Can be traded long/short...No hard to borrow list that exist with equities • Very liquid meaning you can execute an order quickly and efficiently • Minimal slippage • Affordability-account minimum $5000 • Day Trading margin of $500 for index futures • No pattern day trader requirements

  5. Futures, Equities, & Forex • Futures account min:$5000 • Equities account min $25,000 according to S.E.C. • With Equities account less than $25,000 only 5 round trip trades a week • Forex account min: $2000/No fees/pay spread • Can be $40 and your trade still has to go right • One futures contract can traded for $2.50

  6. Example tradeDIA vs. YM

  7. Short of DIA (Dow ETF) • 100 shares of DIA shorted at $156.10 • Bought to cover at $155.45 • Cost of trade $15,610 • Profit of trade was $65

  8. Short of YM (Dow Futures) • Short 1 contract of YM at 15584 • Bought to cover 15518 • Cost of trade $500 • Profit of trade $330...66 points x $5= $330

  9. Results of trade • Futures trade produced larger profits at a lower cost

  10. Best time of day to trade futures • Most liquid time is 9:30 am to 12:00pm ET • Why does trading slow down at 12pm ? LUNCH !!!! • Trading picks up again about 3pm • Personally I find the open and close volatile • Two times to watch for are 10 am and 10:30 am reversal times • Better than 90% chance market reverses at these times

  11. My strategy • Market Memory and turning points • History repeats itself • If price turns at a certain point it did b/c someone with a lot of $$ wanted it to • I just look for those turning points where price consolidated then reversed or continued higher • I tend to be a trend trader

  12. RISKMANAGEMENT • RULE #1 DO NOT GO BROKE DAY TRADING I HAVE THIS IN CAPS FOR A REASON • When starting out risk 1% to 2% of your account in one trade • Give yourself a daily max loss • Have a rule where as if you have 2 consecutive losing days take the 3rd day off • I always enter with entry, stop, and target • If a trade goes against you then works out – live with it ! There will be another trade.

  13. Questions ?

  14. Follow Up • I will send you a copy of this presentation if you provided your email at sign in. • Additional questions email me at: ryan.nocera@gmail.com

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