📈 Advantages of Futures Trading:
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Extended Market Hours: Futures markets are open 23 hours a day, from 6pm EST to 5pm EST the next day on weekdays. This provides flexibility and the opportunity to trade across different time zones. Note: On Fridays, the market closes at 5pm and reopens on Sunday at 6pm.
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No PDT Rules: Pattern Day Trader (PDT) rules, which restrict trading frequency for accounts under $25,000, This does not apply to futures trading. So this allows more trading flexibility.
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No Theta Burn: Unlike options, futures do not suffer from time decay (Theta), which means you don't lose value over time just by holding a position.
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Low Starting Capital: You can begin trading with a relatively modest account of $2,000. With discipline and a good strategy, it's possible to grow this to $10,000 in a few months or less.
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Leverage Without Complex Greeks: Futures offer leverage similar to options but without the complexities of the Greeks (Delta, Gamma, Theta, Vega). This can simplify your trading strategy.
- To illustrate how leverage works in futures trading, here are some examples:
- Micro E-Mini S&P 500 (/MES) has a multiplier of 5x per point. Thus, if it moves from $4000 to $4100, the change in value is $100 * 5 = $500.
- E-Mini S&P 500 (/ES): The standard multiplier for /ES is 50x per point. If /ES moves from 3200 to 3250, a 50 point movement, the value change is 50 points * 50 = $2500.
- Micro E-Mini NASDAQ 100 (/MNQ) has a multiplier of 2x per point. Therefore, if it moves from $10,000 to $11,000, the change in value is $1000 * 2 = $2000.
- E-Mini NASDAQ 100 (/NQ): The standard multiplier for /NQ is 20x per point. If /NQ moves from 13,000 to 13,100, a 100 point movement, the value change is 100 points * 20 = $2000.
- Micro Gold (/MGC) has a multiplier of 10x per point. If it moves from $1500 to $1510, the change in value is $10 * 10 = $100.
- E-Mini Dow (/YM): The multiplier for /YM is 5x per point, the same as /MES. If /YM moves from 28,000 to 28,100, a 100 point move, the value change is 100 points * 5 = $500.
- E-Mini Russell 2000 (/RTY): The multiplier for /RTY is 50x per point, similar to /ES. So, if /RTY moves from 1600 to 1620, a 20 point movement, the value change would be 20 points * 50 = $1000.
/MES VS /ES?
- /MES contracts are 1/10th the size of /ES contracts. ( buying 10 MES = 1 ES)
- The smaller contract size allows for more flexibility in trading strategies. Traders can scale in and out of positions with more granularity, potentially improving trade management and the ability to capture profits or cut losses.
- This flexibility can also be beneficial in hedging strategies, where precise position sizing is crucial.
- you can refer to the Full Point / Multiplier for more info on other tickers in the link below Available CME futures contracts at tastyworks : tastyworks
Timeframe for volatility —>https://www.thebalance.com/stock-market-hours-4773216
Usually major volumes and moves happen around these timeframes.
Asia 9:30 p.m. & 4 a.m.
Euro 3 a.m. & 11:30 a.m
US 7am, 9:30am and 4pm
time above are in EST.
Here’s a list of all the futures contracts that you can trade
Available CME futures contracts at tastyworks : tastyworks
What If I have Less than $500? and Don’t want to trade with my own money?
APEX Trader Funding Prop Firm
- Great Starter Brokerage: Super reliable and trustworthy company for futures trading.
- Fastest and Simplest Bracket Order System: Efficient and easy to use.
- Threshold and Drawdown explanations
Getting Started(Video Library)
📹 Step 1: Dive into essential trading tips and strategies.
Video 1 007’s Futures Trading Tips - Google Chrome 2024-02-10 18-09-25.mp4
📹 Step 2: Learn how to set up your Tradovate account seamlessly.
Video 2 Setting up Tradovate
📹 Step 3: Synchronize your Tradovate account with TradingView charts for enhanced trading. (Access to real data)
Video 3 Syncing Tradovate with your Tradingview Chart
wtf📹 Step 4: Get a clear explanation of how payouts work and how prop firms operate.