/biz/ - Business & Finance

>>16849200
>Recommended babby first future? Not aksing for a spoon-feeding, just guidance on a safe play. I wouldn't want to risk more than $100 on my first dozen or so trades.
Hm, everybody trades differently but most strategies boil down to either going with the trend or trading a reversion after a pullback from the trend. I've always preferred the latter since it seems to suit my personality better and I have good success with it.
When dealing with leverage if you want to play it safely you want to find an instrument with a low notional value and isn't likely to move to fast on you. Treasuries and currencies are perfect for this but I don't trade those so I'll direct your attention to the micro Russell 2000 index. If you only want to risk $100, that's easy. Just place a stop $100 away from your entry. The micro russell has a value of 50 cents per tick and each tick is 1/10 of a point. Say you buy one contract at 1670.0 your stop would be set 200 ticks below that so 1650.0
A decent babby's first mean reversion strategy is to find horizontal lines of support as underlined in pic related. When the price dumps beneath that support line, by roughly the amount indicated by the arrow on there you buy. Your target sell is when the price gets back to that support line which will often act as resistance. The market is trending up right now so the probability of this strategy succeeding is very high and the support resistance areas are easy to spot. So fund your account, look for support on the micro russell 2000, when it dips buy a contract, set your stop 200 ticks below that and set your sell for when the price gets back to that support (now the resistance). Remember this is babby's first index futures strategy and yes it is simplistic but it should help get you started.
Good luck