trading the e mini crude oil

[mystery1]

i am new to this forum and to options in general a recently met someone who only trades this emini crude oil future. anyone have any experience with this? this guy says he makes anywhere from 1000 to 2500 per day or more on average. is this possible?

[Rambis]

of course not. obviously this person was trying to get in your pants.

[aiki14]

Originally Posted by mystery1

i am new to this forum and to options in general a recently met someone who only trades this emini crude oil future. anyone have any experience with this? this guy says he makes anywhere from 1000 to 2500 per day or more on average. is this possible?

If you had 100k at risk all the time you might make 1000/day, but you would be a superstar to avg any where near there
More likely if you had a million on the table.

[Luc1Grunt]

Originally Posted by aiki14

If you had 100k at risk all the time you might make 1000/day, but you would be a superstar to avg any where near there
More likely if you had a million on the table.

Agree on the base capital. 1k a day is "doable". Although I highly doubt it for a new trader without an edge and consistent money management.

If you turn trades in excess of 1 million a day (10 $100,000 trades), the 1k is 1%. With 4:1 margin on 50k, you have the swinging power to take the trades to 200k each. Drawdown and system "scaling" is another issue all together let alone your psychological challenges in trusting your signals.

My advice (to the OP) would be to spend the time studying the instrument and developing a system on probabilities if you wish to churn that size account. Anything less than about 30k will frustate you (OP).

Grab a mentor on ET who is willing to share e-mini systems.

There are plenty that are freely posted. Find a poster with your style in mind and PM them.

PM me if you need some direction.

[Greyzy]

Originally Posted by Luc1Grunt

Grab a mentor on ET who is willing to share e-mini systems.

There are plenty that are freely posted. Find a poster with your style in mind and PM them.

PM me if you need some direction.

Luc,
I am also new to trading and this forum, so I'm not familiar with some abbreviations. What do you mean by "mentor on ET" (of course I know what a mentor is!)?

Thanks,
Greyzy

[Luc1Grunt]

Originally Posted by Greyzy

Luc,
I am also new to trading and this forum, so I'm not familiar with some abbreviations. What do you mean by "mentor on ET" (of course I know what a mentor is!)?

Thanks,
Greyzy

See PM.

Walk into the light.

[mystery1]

thx for the replys but if i remember correctly the person i talked to said that he trades one e mini crude oil contract which cost him 1300 and he profits 250 on a dollar swing in crude prices . so 4 contracts 1300 x 4= 5200 so with that he profits 1000 per day. let me know if this is crazy talk

[Rambis]

the specifics are on nymex.com

one contract is 500 barrels

to make 1000-2500 per day on a dollar move would be 2-5 contracts.

no small amount to play with but not a lot either.

[aiki14]

Originally Posted by mystery1

thx for the replys but if i remember correctly the person i talked to said that he trades one e mini crude oil contract which cost him 1300 and he profits 250 on a dollar swing in crude prices . so 4 contracts 1300 x 4= 5200 so with that he profits 1000 per day. let me know if this is crazy talk

This is crazy talk.

Thats 20% a day profit. Some days the move on the contract is less than a dollar, and nobody has oil pegged as to direction of move every day, it's impossible.
That's a very liquid market so you could potentially buy hundreds of contracts, even thousands, starting with 5200, and doubling every 5 days, you'd be a billionaire in 9 months. That sound like your friend?

[fredly]

It is quite apparent to me that many posts here are being posted by people who don't know a thing about trading the futures markets. Making $1000-2500 per day trading Emini Crude is very doable for someone that has a trading plan and sticks to it. Using an extremely conservative approach of needing $5000 in an account for each $1000 of margin requirement per contract infers that a $25000 account would be needed to trade 5 contracts. If someone could not make $1.00 each day trading 5 contracts, then that person needs to be doing something else. Whether or not a market has a wide daily trading range has very little to do with the profits one can make on a daily basis. More important is the number of contracts being traded, a sound trading methodology and proper risk management. I think some of you guys are confusing margin requirements with the actual dollar amount one is controlling with each contract. I can control an S&P Emini contract now for $500.00, and at the current price of 965, that means I am controlling $48,250 with my $500 margin; so the number of contracts I am trading has to do with the size of my account, yes, but the margin requirement for daytrading emini futures is typically $500 to $1500, depending on the broker and the market being traded. Based on my trading methodology, if I had been trading the Emini Crude contract today, I would have made 5 points, both long and short. I don't trade more than 2 contracts, so putting up $500 x 2 or $1000, would have made me $2500, so it is very doable, in just about any market.