$200 in less than 30 minutes?
Hi fellow trader,
How's it going lately? One of my students asked me how many contracts he should trade for a beginner. I recommend 2 contracts. Well, I always recommend the NASDAQ 100 over S&P 500 for beginners as it is less volatile. Beginners get burnt on S&P 500 in hope of making big money. DON'T GET GREEDY. GREED is one of the worst enemy of the trader. Start by trading 2 contracts, and aim for a 5 point move. 5 points in Nasdaq 100 emini is equivalent to 100 dollars. Remember, the minimum tick for NASDAQ 100 is 0.5 points which is equivalent to $10. So by trading 2 contracts for a 5 point move, you are aiming for
2 contracts * 5 points * $20 = $200.
The trade below is a typical simple and fairly accurate trading technique beginners can try out. Several Conditions must be satisfied first:
1 Price is in an upward trending environment.
2 Price is moving countertrend in a pullback towards the moving averages.
The KEY is to wait for price to bounce off the moving average. Wait for confirmation and enter. Exit when price hits the previous peak. This following trade illustrates this strategy:
For those of you who are cynical, here's proof of this simple trading strategy: (click to enlarge image)
