Trading In Futures

What are the advantages of day trading futures?

One of the key advantages of day trading futures is that we have the opportunity to trade before the market opens (before 9:30 a.m. when the equity markets open in America). You will discover futures traders who are active pre-market and get a great head start on making profit for the day.

There is some limited pre-market trading of stocks, but overall it is pretty light. Stock traders really have to wait until 9:30 a.m. to get good fills without slippage (i.e., the difference between what you want to profit versus what you didn't not profit for your trades).

If you are in the "market," prepared to garner the power of day trading futures, lets discuss 2 trading opportunities that can create some pretty nice returns, before other traders bring up their trading platforms.

So How Is IT Futures Traders Have an Edge Over Stock Traders Pre-Market?

Most economic reports come out at 8:30 a.m. EST or ETD. These reports are cyclical, meaning they come out at the exact same time, on the same day, each month, definitely not something stock traders benefit from. Remember it is 8:30 a.m. and the market opens at 9:30 a.m.

There is one news item that is hot to trade, every month. It pays a mortgage payment in roughly 30 to 60 seconds. This news item is released on the first Friday of every month at 8:30 a.m. from the Bureau of Labor Statistics. It is the unemployment report. Thousands of contracts are traded in 30 to 60 seconds. This is not for stock traders' -- this is just a futures traders' game.

On that day, the S&P500 emini shines. There is no limit to the number of emnini contracts that can be traded at that time and you can get filled with little slippage. The emini pays $12.50 for each tick (price movement) made. With the unemployment report, the emini can move several points, not just ticks.

Here's the best part. During those monthly unemployment reports, traders can buy and sell different futures contracts because they all react the same to the unemployment report -- the emini S&P 500, the emini Nasdaq, the Dow Futures, even the treasuries and there is good currency trading as well. Each contract rewards the trader with different amounts, but all tend to move significantly during the release.

As an emini futures trader, you get used to the fact that there is an inverse relationship between the emini futures and treasury bonds.

If the news is good (the unemployment rate tick'd down) -- then the emini S&P500 goes up. The 30-year bond and the 10-year note decline. With good news, the market invests in stocks and dumps treasury bonds. No problem for futures traders; just enter short instead of long.

If the news is not so good (the unemployment rate tick'd up even higher) the 30-year bond and the 10-year note can rise even higher," because institutions flee towards safety, buying treasury bonds and exiting their stock positions as fast as possible.

The Tricks of Trading

How can you know whichdirection the market goes on the first Friday? Of course, if you are not a futures trader, you may think, "Hmm, it's not possible to know," because you must wait until Friday at 8:30 a.m. to discover it.

Here is the "insider's" trick. On the Wednesday before unemployment Friday, at 8:15 a.m., the ADP Non-Farm Employment Change Report is released. This is only for futures traders. It provides a over view of what to expect on Friday morning. While the ADP report does not include government jobs, it still gives a good bellwether of overall market direction. The ADP release is another good 30-60 second trade. The first trading week of every month, futures traders enjoy two nice trades -- each entry lasting from 30 to 60 seconds -- and can generally pay your mortgage, property tax and property insurance at the same time! Oh well, stock traders, better luck another time. ...

If you experiencing losses trading S&P 500 Emini Futures, or if you are new to Futures trading and want more information, attend the Shadowtraders Webinar held on Monday nights.

TRADING DISCLAIMER All TRADING involves high risk and YOU can LOSE a substantial amount of money, no matter what method you use. All trading involves high risk; past performance is not necessarily indicative of future results. Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE IS RISK OF LOSS IN ALL TRADING. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. ALL RESULTS ARE HYPOTHETICAL. NO IMPLICATION IF BEING MADE THAT ANYONE UTILIZING ANY OF THE SERVICES OF SHADOWTRADERS HAS OR CAN OBTAIN SUCH PROFITS AND RESULTS. THIS INFORMATION IS NOT A RECOMMENDATION TO BUY OR SELL AT THIS TIME, BUT MERELY A PRESENTATION OF TRADES STRATEGIES. THE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES BELIEVED RELIABLE, BUT IS NOT GUARANTEED AS TO THE ACCURACY OR COMPLETENESS. PLEASE CHECK MARKET FUNDAMENTALS AND TECHNICAL CONDITIONS BEFORE CONSIDERING THESE OR ANY TRADES. This is not a prospectus; no offer on our part with respect to the sale or purchase of any securities is intended or implied, and nothing contained herein is to be construed as a recommendation to take a position in any market. It is possible that at this date or some subsequent date the officers, directors and/or shareholders of Shadowtraders and its affiliates own securities, or buy or sell securities mentioned in this publication or those not so mentioned. The intent of the Shadowtraders information supplied to SUBSCRIBER is for instructional purposes only. Shadowtraders information supplied to SUBSCRIBER is intended to be purely educational. The material presented herein has been obtained or derived from sources believed to be accurate, but we do not guarantee its accuracy. There have been no promises, guarantees or warranties suggesting that any trading will result in a profit or will not result in a loss. SUBSCRIBER is responsible for his own actions regarding an trading.

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