What Contract to Trade?

[D3rp 10]

Hi everybody,

 

I am interested in futures trading. My account size will be 5-10k, and I am based on the west coast. What contract should I start trading in and what are some useful resources?

 

Thanks in advance.

[Tams 20]

Hi everybody,

 

I am interested in futures trading. My account size will be 5-10k, and I am based on the west coast. What contract should I start trading in and what are some useful resources?

 

Thanks in advance.

 

any demo contract would do, for the next 12 months.

[D3rp 10]

All the demo accounts I have found only work for up to a month. Can anyone recommend me a site that has longer lasting demo accounts or should I open a new one every month?

[Predictor 11]

It takes a lot of experience to win in futures game especially with such a small account. With only 5k-10k, you can't afford to make many mistakes. Tough way to learn.. I'd recommend taking a look at YM, ES, and NQ. I'd personally avoid crude. The currencies are also an option and more suitable to that account size. Prepare to spend at least 6-12 months in simulated trading. Don't try to do it for 1 month then go live.

 

You can often get a better rate by funding your account. There are often specials. I would look at CQG, Ninjatrader, Tradestation, ThinkOrSwim, and DTN.IQFEED and see what's available.

 

All the demo accounts I have found only work for up to a month. Can anyone recommend me a site that has longer lasting demo accounts or should I open a new one every month?

[wrbtrader 10]

All the demo accounts I have found only work for up to a month. Can anyone recommend me a site that has longer lasting demo accounts or should I open a new one every month?

 

Most broker accounts have simulators these days for clients and demos for none clients. Simulators via a broker will last forever assuming you keep money in the account via their required minimum balance.

 

Thus, if you want a longer lasting demo...you're going to have to open a real trading account with a broker and then only use their simulator. This is more practical and allows you to practice on the exact same trading platform you're going to be trading with real money.

 

Therefore, instead of looking for a demo...you should be looking for a broker...preferably one that offers different trading platforms. In addition, don't use a demo or simulator until you have an actual trade method to prevent developing bad trade habits. Thus, if you're still in the process of designing your trade method...you should only be doing backtesting.

 

As for an answer to what futures contract to trade?

 

Easy answer...backtest your trade method on as many as possible and let the backtest results help determine which to trade instead of getting advice from someone that's using a different trade method suitable for their own trading instrument. Thus, what's good for someone else may not be good for you unless you two are using similar trade methods, same time frames and same trading durations.

Edited January 9, 2012 by wrbtrader

[D3rp 10]

@Predictor

 

When you say currencies do you mean spot forex or forex futures?

 

@wrbtrader

 

Can you recommend any resources other than this site for developing a trading style?

[YertleTurtle 10]

90% of futures new futures traders go broke within a few months. With your account size it would be very easy to blow up your account. You would also need to get up at 5 am to trade when the markets open.

 

I would recommend you start with spot forex. The market is open 24 hours 5.5 days a week and has good volume during your evenings. Also you can trade micro lots at around 10 cents a pip.

 

Your goal in the beginning shouldn't be to make money - it should be to learn and not blow up your account. Capital preservation via proper risk management is essential to all traders. Learn to trade with hard stops, to assess risk/reward, and to be disciplined. If you can do that you increase your chances of success ten fold. Down the road if you want to trade futures you will have an easy transition to currency futures.