Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

bkny1055

Newb to investing qustions needing answers

Recommended Posts

First off I would like to say thanks to you guys for having a site like this

I am a NEWB to investing & I have never really done it on my own

I am very much interested in learning to invest Futures, E-Mini S&P and E-Mini NASDAQ

I have some questions that I wanted to know if you guys can answer

1.

What institution do you guys have your accounts with (E-trade, Scott’s trade etc.)

2.

If I wanted to start investing in E-Mini who can I trade with? (E-trade, Scotts trade etc.)

3.

I have an old 401k that I need to roll over but I want to use the money to invest how can I roll it over to an investing company to invest in E-Mini’s? (IRA, Rollover IRA etc.)

4.

I have a total of 4,000.00 in cash and 2500.00 in the 401k to use is this enough to get me started? (heard I should have 20k)

5.

Where can I learn how to invest in E-Mini’s?

I am looking for a newbie from scratch learning place baby steps.

 

Thanks guys

I know you guys have been doing this for years you might be wonder why I am not much more vested and the answer is I never had the guidance needed to get started so here I am looking to get started

 

First I was looking at this in a small way like I want to make enough money in this to pay my car note (300.00) every month but I know there is much more I can make at this if learn properly

Share this post


Link to post
Share on other sites
Guest cooter

1. You need to find a futures broker. Don't go with a stock brokerage to trade futures, if they even support it. They are two different, but otherwise related, beasts. You need a broker who understands what futures trading is all about, especially if you are a newbie needing support to get started.

 

2. Once you find a futures broker, they should have the e-minis (ES, YM, NQ, ER2) available for you to trade.

 

3. This 401K is money that you can afford to lose, right? Roll it over to an IRA, then have a custodian setup the account so that you can trade it with a futures broker. Millennium Trust is one custodian that I've heard of - your broker will advise you if they can support this type of account for you to trade in, and who they recommend as a custodian.

 

4. Again, if it is money that you can afford to part with - certainly. The learning curve for many traders is very steep, so be sure to only use $$$ that you don't mind not having the next day.

 

5. Read this forum from top to bottom. There should be some nuggets of information that may help you get started.

 

Just my two ticks' worth.

Share this post


Link to post
Share on other sites

It's not easy, and they don't play nice. If you are going to do futures I'd suggest picking up John Carters book Mastering the Trade, and a good book on technical analysis. Carter has some good strategies that may or may not work well with your personality, thats for you to decide.

 

Learn how to read the tape, check out the videos on this site you will learn a lot of invaluable things there. Just remember, you will not be trading the e-minis but you will be trading other traders. They think that way, and you must as well if you don't want to get bullied around and thrown out.

 

 

One other thing, download E-Signal and make sure you can look at the futures. Then create a setup that you like, find out the pivot points (there are calculators here) and watch the Trin, Tick, Put/Call ratio, etc. This way before you create an account you are familiar with how the price moves, how it acts at various important levels, etc.

 

And Interactive Brokers will let you trade futures. So will Trade Station, but I believe you have to be considered an active trader for at least 2 years.

Share this post


Link to post
Share on other sites

Be prepared to blow your account. If it's your last shot, demo trade at least 6 month on a single strategy until you're comfortable and trade it exactly planned on paper in snow, sleet, rain, sun, hailstorm, plague, flood, blah blah blah. If they roof falls on you, expect to pull that same trigger as planned if one of your fingers are still working and the computer is still connected to an order server. I'm exaggerating but just want to point out how discipline plays an important part in not blowing out the account.

Share this post


Link to post
Share on other sites

Maybe look into Infinity if you are interested in the eminis. Also since you are a beginner you can have Infinity place an automatic stop daily limit on your account. In other words, it will liquidate and freeze your account once a predefined stop is hit. This could be $300, $500, $1000, etc... any amount you tell them. With the current capital you plan to trade with, I would say it will be hard to practice sound money management. You are severely handicapped to begin with. I suggest you paper trade your way to consistency with sound money management rules, solid strategies, and market understanding before risking a single penny. You will be surprised to see how quickly the futures markets can diminish your account.

Share this post


Link to post
Share on other sites

bk - here's my suggestion - do not use the words 'invest' and 'emini futures' in the same sentence or breath. When you trade futures, you are trading VERY AGGRESSIVE and HIGHLY LEVERAGED products. These are NOT your buy and hold mutual funds like you may be used to.

 

First step is to educate yourself. Be careful, there are many co's out there that will prey on newbies like yourself. Do your homework first.

 

Here's some FREE info out there:

http://www.cme.com/edu/

http://www.cbot.com/cbot/pub/page/0,3181,1130,00.html

 

You could spend the next few weekends reading and reading. And you need to.

 

Lastly, I am not a fan of daytrading futures in a retirement account. Not only is it a pain in the butt to get the account opened to trade futures, it costs more and I don't condone daytrading your retirement funds (no matter the size).

 

Good luck!

Share this post


Link to post
Share on other sites

just realize you are sitting down with a bunch of sharks trying to take your money. it takes most people 9 months or more before they can even breakeven.

 

seriously, this is very complex stuff. I would suggest you read:

 

Street Smarts (Raschke & Connors)

Markets In Profile (Dalton)

Mastering The Trade (Carter)

 

My other advice:

1) don't overtrade your account. Find 1 or 2 very specific set-ups that only occur maybe a handful of times per WEEK and become a master of these trades and don't force 'em. Over time, you get several of these going and you get a few choice trades per day. You will STILL be wrong a fair amount of the time.

 

2) play for small targets most of the time. Rashke talks about how it is like fishing -- you cannot bag the big one every single day. you stick your line out there and see what you can get -- most of the time, they are small ones. occassionally, you catch a big one. just don't be the guy letting all the little ones go.

Share this post


Link to post
Share on other sites

Basically you will only have a few chances every month to make big money. The rest of the time you and everyone else are trying to keep their account alive. They know you are new and that you are emotional, and they will take advantage of you.

 

I'd also focus on the YM first and just watch it, take tons of notes.

Share this post


Link to post
Share on other sites
bk - here's my suggestion - do not use the words 'invest' and 'emini futures' in the same sentence or breath. When you trade futures, you are trading VERY AGGRESSIVE and HIGHLY LEVERAGED products. These are NOT your buy and hold mutual funds like you may be used to.

 

 

Good point. If you're looking to invest you're far better off with an ETF like SPYDERS (same underlying as ES - S&P500), DIAMONDS (same underlying as YM - Dow) or QQQQ (same underlying as NQ - NASDAQ).

 

The longest time frame for futures trading is the expiry of the contract which is only 3 months from start to finish. Anything more than that and ETFs are your thing.

Share this post


Link to post
Share on other sites

<<The longest time frame for futures trading is the expiry of the contract which is only 3 months from start to finish. Anything more than that and ETFs are your thing.>>

 

I don't see much advantage to ETF's unless you truly are a long-term holder. Futures have a tax advantage over ETF's. 60/40 cap gains treatment on futures vs full tax rate if hold ETF less than 12 months.

 

also, you do have the option of easily trading futures in the overnight session -- for better or worse.

 

true though, you do have to deal with the rollover with futures.

Share this post


Link to post
Share on other sites

The tax issue you mention is specific to the US. I don't know how relevant it is to the OP (not at all relevant to me).

 

There are other funding issues to consider. ETFs pay a dividend whereas if you were planning long term investments with futures you'd need a lot of money in your brokerage account (probably not receiving any interest) to cover the large drawdowns that you'd probably suffer.

Share this post


Link to post
Share on other sites

Here's my view - my risk capital is in daytrading of futures. My retirement and serious money is in ETF's. Trying to use futures for a long-term play is rather difficult in my opinion with rollovers and the amount of leverage at play here. You can't simply just sit on a losing futures position and know that sooner or later the market has gone up, so just hang on. Different mentalities in my opinion.

 

Not to mention, has anyone had success here opening an IRA at a custodian to daytrade futures that was quick and easy? I only attempted this once (with Millenium as the trustee) and I could not get simple emails returned. I thought since they could not return my simple email questions that trying to get actual funds there and get responses could be a pain and not worth the effort.

Share this post


Link to post
Share on other sites
Guest cooter

Not to mention, has anyone had success here opening an IRA at a custodian to daytrade futures that was quick and easy? I only attempted this once (with Millenium as the trustee) and I could not get simple emails returned. I thought since they could not return my simple email questions that trying to get actual funds there and get responses could be a pain and not worth the effort.

 

No one said it would be easy, Brownie!

 

But it is doable, for someone who really wants to get it done.

Share this post


Link to post
Share on other sites
No one said it would be easy, Brownie!

 

But it is doable, for someone who really wants to get it done.

 

It wasn't worth the effort for me I guess. ;)

 

Trade my risk capital and invest my retirement money. Seems like a good combination to me. I could not imagine daytrading my retirement dollars. It doesn't get much more risky than that... If that's all you got, I guess you could trade a small piece of it, but I still would be leary of that. I've traded and been in the markets for quite awhile now and would not suggest using futures for retirement dollars, ESPECIALLY IN THE BEGINNING. Odds are that you will lose a good chunk of that money and when it's your retirement at work, those losses are a tad harder to swallow.

Share this post


Link to post
Share on other sites
Guest cooter

So the consensus would be - especially for newbies - don't trade your savings and retirement accounts away - be it 401K or IRA. You'd rather have that money years later available to you, instead of losing it now.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • NFLX Netflix stock watch, local support and resistance areas at 838.12 and 880.5 at https://stockconsultant.com/?NFLX
    • Hello citizens of the U.S. The hundred year trade war has leaked over into a trading war. Your equity holdings are under attack by huge sovereign funds shorting relentlessly... running basically the opposite of  PPT operations.  As an American you are blessed to be totally responsible for your own assets - the govt won’t and can’t take care of you, your lame ass whuss ‘retail’ fund managers go catatonic  and can't / won’t help you, etc etc.... If you’re going to hold your positions, it’s on you to hedge your holdings.   Don’t blame Trump, don’t blame the system, don’t even blame the ‘enemies’ - ie don’t blame period.  Just occupy the freedom and responsibility you have and act.  The only mistake ‘Trump’ made so far was not to warn you more explicitly and remind you of your options to hedge weeks ago.   FWIW when Trump got elected... I also failed to explicitly remind you... just sayin’
    • Date: 7th April 2025.   Asian Markets Plunge as US-China Trade War Escalates; Wall Street Futures Signal Further Turmoil.   Global financial markets extended last week’s massive sell-off as tensions between the US and its major trading partners deepened, rattling investors and prompting sharp declines across equities, commodities, and currencies. The fallout from President Trump’s sweeping new tariff measures continued to spread, raising fears of a full-blown trade war and economic recession.   Asian stock markets plunged on Monday, extending a global market rout fueled by rising tensions between the US and China. The latest wave of aggressive tariffs and retaliatory measures has unnerved investors worldwide, triggering sharp sell-offs across the Asia-Pacific region.   Asian equities led the global rout on Monday, with dramatic losses seen across the region. Japan’s Nikkei 225 index tumbled more than 8% shortly after the open, while the broader Topix fell over 6.5%, recovering only slightly from steeper losses. In mainland China, the Shanghai Composite sank 6.7%, and the blue-chip CSI300 dropped 7.5% as markets reopened following a public holiday. Hong Kong’s Hang Seng Index opened more than 9% lower, reflecting deep concerns about escalating trade tensions.           South Korea’s Kospi dropped 4.8%, triggering a circuit breaker designed to curb panic selling. Taiwan’s Taiex index collapsed by nearly 10%, with major tech exporters like TSMC and Foxconn hitting circuit breaker limits after each fell close to 10%. Meanwhile, Australia’s ASX 200 shed as much as 6.3%, and New Zealand’s NZX 50 lost over 3.5%.   Despite the escalation, Beijing has adopted a measured tone. Chinese officials urged investors not to panic and assured markets that the country has the tools to mitigate economic shocks. At the same time, they left the door open for renewed trade talks, though no specific timeline has been set.   US Stock Futures Plunge Ahead of Monday Open   US stock futures pointed to another brutal day on Wall Street. Futures tied to the S&P 500 dropped over 3%, Nasdaq futures sank 4%, and Dow Jones futures lost 2.5%—equivalent to nearly 1,000 points. The Nasdaq Composite officially entered a bear market on Friday, down more than 20% from its recent highs, while the S&P 500 is nearing bear territory. The Dow closed last week in correction. Oil prices followed suit, with WTI crude dropping over 4% to $59.49 per barrel—its lowest since April 2021.   Wall Street closed last week in disarray, erasing more than $5 trillion in value amid fears of an all-out trade war. The Nasdaq Composite officially entered a bear market on Friday, sinking more than 20% from its recent peak. The S&P 500 is approaching bear territory, and the Dow Jones Industrial Average has slipped firmly into correction territory.   German Banks Hit Hard Amid Escalating Trade Tensions   German banking stocks were among the worst hit in Europe. Shares of Commerzbank and Deutsche Bank plunged between 9.5% and 10.3% during early Frankfurt trading, compounding Friday’s steep losses. Fears over a global trade war and looming recession are severely impacting the financial sector, particularly export-driven economies like Germany.   Eurozone Growth at Risk   Eurozone officials are bracing for economic fallout, with Greek central bank governor Yannis Stournaras warning that Trump’s tariff policy could reduce eurozone GDP by up to 1%. The EU is preparing retaliatory tariffs on $28 billion worth of American goods—ranging from steel and aluminium to consumer products like dental floss and luxury jewellery.   Starting Wednesday, the US is expected to impose 25% tariffs on key EU exports, with Brussels ready to respond with its own 20% levies on nearly all remaining American imports.   UK Faces £22 Billion Economic Blow   In the UK, fresh research from KPMG revealed that the British economy could shrink by £21.6 billion by 2027 due to US-imposed tariffs. The analysis points to a 0.8% dip in economic output over the next two years, undermining Chancellor Rachel Reeves’ growth agenda. The report also warned of additional fiscal pressure that may lead to future tax increases and public spending cuts.   Wall Street Braces for Recession   Goldman Sachs revised its US recession probability to 45% within the next year, citing tighter financial conditions and rising policy uncertainty. This marks a sharp jump from the 35% risk estimated just last month—and more than double January’s 20% projection. J.P. Morgan issued a bleaker outlook, now forecasting a 60% chance of recession both in the US and globally.   Global Leaders Respond as Trade Tensions Deepen   The dramatic market sell-off was triggered by China’s sweeping retaliation to a new round of US tariffs, which included a 34% levy on all American imports. Beijing’s state-run People’s Daily released a defiant statement, asserting that China has the tools and resilience to withstand economic pressure from Washington. ‘We’ve built up experience after years of trade conflict and are prepared with a full arsenal of countermeasures,’ it stated.   Around the world, policymakers are responding to the growing threat of a trade-led economic slowdown. Japanese Prime Minister Shigeru Ishiba announced plans to appeal directly to Washington and push for tariff relief, following the US administration’s decision to impose a blanket 24% tariff on Japanese imports. He aims to visit the US soon to present Japan’s case as a fair trade partner.   In Taiwan, President Lai Ching-te said his administration would work closely with Washington to remove trade barriers and increase purchases of American goods in an effort to reduce the bilateral trade deficit. The island's defence ministry has also submitted a new list of US military procurements to highlight its strategic partnership.   Economists and strategists are warning of deeper economic consequences. Ronald Temple, chief market strategist at Lazard, said the scale and speed of these tariffs could result in far more severe damage than previously anticipated. ‘This isn’t just a bilateral conflict anymore — more countries are likely to respond in the coming weeks,’ he noted.   Analysts at Barclays cautioned that smaller Asian economies, such as Singapore and South Korea, may face challenges in negotiating with Washington and are already adjusting their economic growth forecasts downward in response to the unfolding trade crisis.           Oil Prices Sink on Demand Concerns   Crude oil continued its sharp slide on Monday, driven by recession fears and weakened global demand. Brent fell 3.9% to $63.04 a barrel, while WTI plunged over 4% to $59.49—both benchmarks marking weekly losses exceeding 10%. Analysts say inflationary pressures and slowing economic activity may drag demand down, even though energy imports were excluded from the latest round of tariffs.   Vandana Hari of Vanda Insights noted, ‘The market is struggling to find a bottom. Until there’s a clear signal from Trump that calms recession fears, crude prices will remain under pressure.’   OPEC+ Adds Further Pressure with Output Hike   Bearish sentiment intensified after OPEC+ announced it would boost production by 411,000 barrels per day in May, far surpassing the expected 135,000 bpd. The alliance called on overproducing nations to submit compensation plans by April 15. Analysts fear this surprise move could undo years of supply discipline and weigh further on already fragile oil markets.   Global political risks also flared over the weekend. Iran rejected US proposals for direct nuclear negotiations and warned of potential military action. Meanwhile, Russia claimed fresh territorial gains in Ukraine’s Sumy region and ramped up attacks on surrounding areas—further darkening the outlook for markets.   Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Andria Pichidi HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • AMZN Amazon stock watch, good buying (+313%) toi hold onto the 173.32 support area at https://stockconsultant.com/?AMZN
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.