Scalp Trading With a Small Account With an Emini!

What if I told you that you could enter the world of scalp trading with a small account? You would laugh at me right? Or rather, you’d think I was insane! Well, my friend, neither I am insane, nor I am making a joke of any sort. It is possible to start at small and yet make those big dreams come true. Yes – scalp trading IS possible even of you don’t have a fortune at your disposal, to play with.

An introduction

So how will you bring about this miracle? (I’m guessing, you’re still skeptical and think that I’m talking gibberish). It’s quite simple really, have you ever heard of the emini futures contracts?

No? If you haven’t then let me tell you that these contracts are the best thing that could happen to you, simply because, with the help of them, you, as a trader will be able to purchase the major indices of the Chicago mercantile exchange for just a fraction of the total price of the contract! Now isn’t that something?

An Explanation

How does this come about? The contract which I referred to earlier is basically an agreement between the buyer and seller, in which the seller must deliver some particular underlying asset at a fixed price on a certain date -which has been agreed upon earlier,-in the future. The delivery price can is pretty much the same as that of an options contract and the price that the contract is delivered at is generally known as the futures price.

The Fun Just Begins!

So it is plain to see how this contract is going to enable you to play the market at a fraction of the price that you otherwise would have! In fact, on an average, if you are stock trading as a day trader then you need to have a minimum of $25,000 in your account, but with an emini futures contract, all you’re going to need is $2500! Yeah, roughly one-tenth the price that you otherwise would have to pay.

In live trading rooms, the main complaint of the day traders is that the shares are way too volatile and keep rising and falling and unless one is very experienced, predicting the rise and fall of the shares is pretty much next to impossible.

But with an emini, you can buy an ENTIRE index and as a result of that your risk is reduced by a whole lot, since your exposure to the market is cut down on considerably. This is brought about by the fact that you are buying a basket of stocks instead of a few selected ones.

So if you’re planning on stock trading, then always make sure that you get an emini futures contract, that way you can not only minimize your risk, but also maximize your profit margin!

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