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Author: stevieoh Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 794  
Subject: The DOW mini's Date: 8/2/2002 4:49 PM
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I have been watching the DOW mini's for the last week or two and IMHO, there are a few things worth noting for those who might be considering trading futures. (Its worth noting that I more than doubled one of my small accounts these last two days mainly trading only the YJ....please don't think I am bragging, I am not! I am posting this for the benefit of others)((Could have just as easily lost it all))

1st the good stuff.......IB's symbols for the DOW Mini's are YJ for the $2 contract (each point = $2) and YM for the $5 contracts. The YJ's are, IMO, the ones for those who already know how to trade but want to get their feet wet trading futures. At $2 per point, its alot less risky than the Eminis at $20 or $50 per point.

Margin requirements are much lower for the DOW futures than they are for the Emini's....for instance, YJ requires only $540 for regular hours and $1080 in your account if you wish to trade them outside of regular hours (DOW fututres trade from 12:15am to 5:00pm) Now, think of this, the DOW often moves over 100 points a day - if you were able to catch a good swing for one day, and all ya had in your account was $500 or $600, its entirely possible to make (or lose) $200. Not a bad ROI for a day!

Margin for YM is a bit more at $1350 for regular hours or $2700 for trading outside of regular hours. So as far as trading futures go, the option to trade them is there even for those with smaller accounts.....here again, using $1350 on a 100 DOW point day would be $500, not bad eh? How many investors would kill for a return like that in a year?

Now, the not-so-good stuff......currently, Qcharts charges $30 per month for realtime DOW mini's - that sux, but it seems that the DOW mini's follow DIA (the stock) and ES fairly well. Per a phone call I made to Qcharts, they said that "soon", the DOW mini's will be no charge, they told me maybe next month they will make it available for free.

Then theres the spread. The spread is definately wider on YJ but since volume on YJ is only maybe a few thousand a day, and YM trades maybe five or six thousand, many times the spread is over 10 points on them both - still, IMHO, its not that big of a deal because of the typical daily range of the DOW.

Even tho each point of movement on the DOW will not equal the identical movement on the DOW minis, the DOW minis still seem to have plenty of swing to take advantage of.

Heres a chart with YM/YJ overlayed with DIA and ES
http://www.ttrader.com/mycharts/display.php?p=4687&u=stevieoh&a=stevieoh%27s&id=15

A few neat Futures sites: http://www.britefutures.com/symbols.asp
http://www.cbot.com/

And a futures message board a whole lot more active than this one:-)
http://www.elitetrader.com/vb/forumdisplay.php?s=dd2d59185575a365814f45cee57adf3a&forumid=13
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