Wednesday, October 21, 2009

E-Mini Futures Tactics

Van Tharp Institute
Click Here for Van Tharp Institute Emini Futures Trading Workshop November 7 - 9

These Markets Are Confusing . . . UNLESS You're an E-Mini Index Trader!

Regardless if the market continues upwards, gently rolls over, or is about to take a dive, you can reap big profits every day - if you have the right tools to capture them!

This market is a perfect match for the multiple trading systems that veteran E-mini traders D.R. Barton, Jr. and Christopher Castroviejo of Van Tharp Institute teach in this course. They will cover the tools, strategies, and the proper mental approach at the upcoming E-Mini Futures Tactics Workshop that will help you exploit the current market conditions.

D.R. and Christopher bring the full weight of their experience to you in this fast- paced course designed to take your trading to the next level. These two instructors have worlds of experience – more than 60 years of trading between them. Also, Christopher actually traded THE FIRST S&P Futures contract back in 1982!

They not only teach "the manual" but they also share their broad, rich — and sometimes expensive experiences with the attendees (some lessons do not come cheap!).

D.R. and Christopher not only teach outstanding strategies and tools, they then trade D.R.'s money live at the workshop on Monday morning to demonstrate those tools in action! After learning the systems and seeing the live trading, you leave the course with the technical detail and hands-on practical knowledge to start trading E-minis with confidence.

A number of the systems that D.R. and Christopher teach depend on intraday or short term volatility. Even though the current market volatility is nowhere near the record levels of last fall and winter, there’s still plenty of it for E-mini traders to earn healthy rewards. In a recent article, D.R. explained: "Today's markets continue to give us very nice levels of volatility which translates into outstanding opportunities for short term traders. Combine short term volatility with the leverage for E-minis and we have prime conditions where traders can find multiple high profit opportunities every single day -- whether the market is hitting new intermediate highs or pulling back and threatening a precipitous drop."

Why Are E-minis Especially Attractive in Today's Markets?

Leverage. One of the biggest advantages for E-mini trading is the high amount of leverage they offer. For day traders, brokers increase this leverage even further. Look at the actual leverage available: the S&P E-mini trade unit is $50 times the S&P 500 Stock Index. Currently, that calculation looks like this: $50 x 1050 = $52.500. The margin to control $53Kworth of stock is around $8K giving you leverage of about 7:1 on your money. However, the day trading margins drop significantly with $1,000 margins still available, and some reputable firms offer $500 margins. At these rates, you can increase your intraday leverage to greater than 80:1! This means you can control $80 worth of stock with each dollar in your account.

Savvy traders know that leverage is a double-edged sword that definitely cuts both ways. While such leverage allows for large returns on very little money, it also means that if used improperly, you can lose big chunks as well. DR and Christopher help you learn specific strategies how to let your profits run while limiting your risk with E-Minis.

Liquidity. When the market is moving, you need to be able to get in or out fast to take advantage of that leverage! Because so many traders have moved to E-mini trading over the last few years, the liquidity on these exchanges is exceptional and orders get filled immediately with little or no slippage at all. This liquidity makes it easier to enter and exit E-Mini positions exactly where you want to – so you can pay attention to the market rather than watching out for tight spreads.

Round-the-clock Market. The S&P E-mini market is “open” 23.5 hours a day, which gives E-mini traders another advantage – it reduces greatly the effect of opening gaps. Your E-mini stop can execute overnight while stops on your stocks are still sleeping – and long before any opening gap kicks out of bed those stops on your stocks!

Favorable Tax Treatment. E-mini traders get to keep more of what they make compared to stock traders. Because E-minis are a futures vehicle, they are treated as section 1256 contracts. 60% of any short term 1256 gains are taxed at long term capital gains rates and the remaining 40% is taxed at the short term rate. This puts the effective max tax rate at 23% for E-mini gains. This max rate is lower than the short term gains tax rate on stocks for any individual with taxable income of more than $32,550 a year. Additionally, E-mini losses can be carried back 3 years against any E-mini profits. With stocks, you are limited to $3,000 loss limit a year that can only be carried forward, not back.

Join D.R. and Christopher from Saturday, November 7 to Monday, November 9, and learn why so many past students loved and profited from this workshop.

We're having this workshop at our new VTI on-site facility where seating is limited. You are assured to be in a small group environment where personalized attention works best.

Click Here to Review and Register for teh Van Tharp Institute Emini Futures Trading Workshop November 7 - 9