Nasdaq Emini Futures Trading Made Simple
July 16, 2011 at 12:17 AM E-mini Nasdaq
Trading's Not Easy But It Can Be Simple
E-mini futures traders use several different methods to profit with the NASDAQ-100. Some use chart patterns while others use oscillators along with other popular indicators such as Stochastics and RSI - Relative Strength Indicator. The NQ is considered an e-mini since it is one fifth the size of the full size NASDAQ futures contract. With excellent volatility and liquidity, the opportunity to profit several times everyday is available for both the skilled and novice trader. Margin requirements are around $500 US per contract which is the main reason e-mini Nasdaq trading has increased in popularity and the number of contracts traded continues to increase year over year.
Trading Symbol And Expiration
The E-mini NASDAQ , commonly known as the NQ, trades in quarter points with each quarter equating to a profit or loss of $5 and a full point yielding a profit or loss of $20.00. NQ e-mini futures are traded on the CME - Chicago Mercantile Exchange. NQ Emini contracts expire four times per calendar year. Scalp trading is used by experienced e-mini Nasdaq traders to enter and exit the market quickly, focusing only on scalping one or two points. Traders looking for larger gains on individual trades will use support and resistance, pivot points or proprietary indicators. NASDAQ emini trading offers an opportunity for disciplined and focused traders to earn consistent profits everyday in the financial markets.
Are you interested in learning to trade emini index futures?
First you will need a proven system that provides a legitimate edge. You will then need the patience and discipline required to learn the system as well as the trade execution side. Many emini traders agree that the NQ is one of the easiest e-mini markets to learn. If you are pursuing the e-mini Nasdaq as a profession, consider a formal education with a well recognized E-mini Trading School.
Nasdaq 100 - The Cure For Chop?
Profits in trading result from the movement of price over a distance. When price simply channels back and forth "spinning it's wheels" as is often the case with the SP500 E-mini, it is not only more difficult for the e-mini trader to post a profit, it is also a high probability that false starts will lead to traders being stopped out prematurely.
Nasdaq 100 E-mini futures or “NQ”, have a tendency to trend more than the SP500 or "ES". The ability of the e-mini Nasdaq to pick a direction and stick with it, is one of the reasons new traders find it so desirable. Once the NQ breaks out of a trading range, it is more likely to move up or down the chart seeking a new area of support or resistance as opposed to simply channeling back and forth. Choppy trading is one of the most difficult market conditions to trade.
Nasdaq 100 Offers Liquidity
The NQ e-mini futures contract provides ample liquidity for most all retail traders and many institutional traders as well. With 150-300k contracts traded each day on the 24 hour Globex session, it is rare to find the spread greater than one tick between the bid and ask. Traders who execute 10-30 contracts per trade are typically able to do so during the day session with virtually no slippage at all. If you are looking for a market that offers both direction and volume, the Nasdaq 100 may just be the answer. Check with your broker today.
Emini Futures Trading, NQ, Nasdaq 
Reader Comments (20)
Is the Nasdaq just tech stocks?
Do you use e-mini indicators to trade the Nasdasq or do you use price action?
What broker only charges $500 for margin?
Ethan,
Thanks for your question. We once thought of the Nasdaq as simply the "Tech" stocks. When the Tech bubble burst, it was the Nasdaq that suffered the most damage. The Nasdaq is both an exchange where traders and investors buy and sell stocks and also an Index which is an average which people use to gauge whether the overall markets are up or down. The NASDAQ (National Association of Securities Dealers Automated Quotations System) was the first purely electronic market. Today there are many companies traded on the NASDAQ that are not "tech" companies.
When it comes to e-mini futures, we trade the NQ. This is a futures contract based on the top 100 NASDAQ stocks and also referred to as the Nasdaq-100. With many brokers you can trade the NQ intra-day for as little as $500 margin per contract. If you have any other questions please email me.
Blessings
DeWayne
Jacob,
We use proprietary emini indicators to trade the NQ. In fact, we have one trade setup that we use to trade all markets. Let me encourage you to take our 1 Week Free Trial - http://cfrn.net/apply . Be sure to download the trading platform and also our e-mini indicators. We will teach you how to use them and during your 5 day trial you will actually be able to place trades in the simulator.
Trading "Price Action" seems to be the new "in thing" among traders. It seems to go in cycles. First it's cool to use indicators, then price action, then the cycle repeats. Our method actually uses Price Action even though we use e-mini indicators. Our indicators are like putting on a pair of a pair of fancy reading glasses. They allow you to see the price action as it unfolds. Give them a try!
Blessings
DeWayne
Ryan,
Call Burt Schlichter @ Daniels Trading - 866-928-3310. He is the broker we recommend to all our clients. Intra-day margins are $500 on the indices and commissions are competitive. If you become a client we do not receive a finders fee nor do we receive any part of the commission you pay. Burt is not only a broker, he is also a very experienced trader. When you call with a problem, you will speak to directly to him and he speaks the language of traders. He is well versed in both futures and options.
Blessings
DeWayne
Do you have favorite chart patterns for the Nasdaq 100 e-mini futures?
Is the NQ $5 or $20 per point? You quote both prices.
Is your e-mini style scalping or day trading?
Alyssa,
I do have favorite chart patterns, but they are not limited to the E-mini Futures. I learned to read candlesticks some years ago from Steve Bigalow. I like to trade the Bullish Engulfing Pattern, the Bearish Engulfing Pattern, the Twin Towers (my own name) and I love a good Doji as long as it's in the proper context.
Because we are trading primarily short term intra-day, we don't have the opportunity to see as many of these patterns develop as I would like. However, if you like swing trading, then follow us on Twitter https://twitter.com/CFRN or Facebook - https://www.facebook.com/pages/Emini-Futures-Trading/158475974185557 and take advantage of some of the great patterns we are able to trade there.
Blessings
DeWayne
Choleo,
My apology. Each point in the Nasdaq-100 E-mini Futures pays $20.00. However, there are 4 ticks inside of every point. Each individual tick pays $5.00. I hope that clears everything up. If you have other questions please give us a call or drop an email.
Blessings
DeWayne
Hannah,
Tough question. I suppose it has to do with ones perspective. People who practice Swing Trading or Position Trading would call everything we do in the world of Day Trading scalping I suppose. We would have to take a closer look at those terms to see exactly what they mean.
Day Trading is to enter and exit a position within the same trading session.
Scalping is to enter and exit a position looking for perhaps only a few ticks.
I believe what we do falls somewhere in the middle. Certainly we are day traders by definition, but we do attempt to take more than a few ticks out of a trade. However, because we use aggressive risk management, we are often forced out of a position with only a few ticks profit. I encourage you to take the free trial in our live e-mini trading room and see if our style fits you. It really is free and there is no Credit Card required. Fair enough? I hope to see you there!
Blessings
DeWayne
How do I take your course for trading eminis?
How is NQ different from ES?
Do you have Emini Trading School?
Isabella,
Start with our 1 Week Free Trial in our Live E-mini Trading Room. http://cfrn.net/apply
Blessings
DeWayne
Ava,
The S&P 500 E-mini Futures or ES is a stock index of the 500 companies that make up the S&P 500. The NQ represents the top 100 companies traded on the Nasdaq exchange.
DeWayne
Lily,
We do have plans to open a brick and mortar E-mini Trading / Training School. Currently all classes are taught online in live markets. Please take our 1 Week Free Trial to learn more.
Blessings
DeWayne
Options - Call and Put Tips : BUY COALINDIA 360 PUT OPTION ABOVE 8.60 TGT 9.60 10.60 12.10 SL 7.10
E-mini NASDAQ-100 is at contract, in which one fifth of the original NASDAQ-100 index based contract, and many other "mini" products geared primarily towards small speculators, as opposed to large hedgers.