Eminis trading system is the most riskiest trading method of all we described so far. Despite the fact it could easily double or even triple your money in one year or less Eminis trading must be approached with great caution.
Let's first explain how an Emini trading system works by trading an emini future contract. First, like options, we have expirations months to work with. With futures contract on market indexes like SP500 and ND100 we have expirations every 3 months (March, June, September, December). It expires on the second Thursday in each of those months. The premium carried is almost inexistent compared with options. Beside the expiration month a future contract is trading the same way as a stock. You put your order in by simply specifying which expiration month and specify if you buy or sell and either you want a limit price or at the market. It is quite simple to use. You can of course trade both sides of the market.
However the leverage with Eminis trading system is quite high but it can work on your nerves in a very bad way. For the SP500 market we have 2 instruments we can use :
SP 500 EMINI future contract
This future contract is trading at the Chicago Mercantile Exchange. With our eminis trading system this contract wins or loses you 50$ per point move on the underlying SP500 index. So if you buy a contract at 1400 and the market moves up 10 points, you make 500$. On the other hand, if the market falls 20 points you are rapidly behind $1,000.
SP500 full future contract
This future contract also trading at the Chicago Mercantile Exchange. This contract wins or loses 250$ per point move. So it is 5 times more leverage than the EMINI SP500 future.
For the ND100 market we have also 2 instruments we can use :
EMINI ND100 future contract
This future contract is trading at the Chicago Mercantile Exchange. This contract wins or loses you 20$ per point move. So if you buy a contract using our eminis trading system at 3800 and the market moves up 30 points, you make 600$. On the other hand if the market falls 50 points you are rapidly behind $1,000.
ND100 full future contract
This future contract is also trading at the Chicago Mercantile Exchange. This contract wins or loses 100$ per point move. So it is 5 times more leverage than the EMINI ND100.
Most of the brokers requires a minimum of about $5,000 to open an account for EMINI SP500 and $10,000 for EMINI ND100 if you want to use eminis trading system.
You can use our index trading systems to trade Eminis futures but you must be prepare to stay very cool when the market moves against you We had a buy signal on SP500 at about 1400 on January 2000 with our method. The market moved in the good direction about 50 points which was very good ( $3,000 paper profit) but the market turned around and felt as low as 1360 ( $2,000 paper loss) in a few days only. At 1360 we were dealing with a 3% paper loss on the index itself (40 / 1400). However if we assume someone had a future account of $10,000, this someone was facing a 20% loss ( 2000 / 10000). This is how leverage works. If you are not cool enough, you may then decide to make move not in sync with our method and end up losing while other investors using the mutual funds or exhange traded funds (Etfs) make money.
Using Eminis future trading for SP500 or Nasdaq 100 is an excellent option. But it is very risky. Just remember that you can lose more than what is in your account initialy. It is of the most importance to observe all stop loss sell signals generated by our index trading system. Otherwise trying to get smarted will quickly bury you in the sand.
Emini Futures Trading Market Timing
Software
Emini Forecaster is an Emini Market Futures Trading Timing Software
Application.
Click here on how to use ETF trading instead of eminis trading system
Click here to return to index trading system description page
