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I consider myself to be an "advanced beginner" trader (after 5 years). I've traded the QQQ since it came out (before then I traded Rydex OTC - a Nasdaq 100 index fund). I also trade Fidelity Select sector funds. Note that my time frame is intermediate - days to weeks. I think the best words of advice you can give to novice traders regarding futures on this index is to stay away until they're
not novice traders any more. Not only is the Nasdaq 100 extremely volatile - but both the QQQ and the Nasdaq 100 futures are being used extensively by institutions these days to hedge large block trades in the underlying securities. So there are crosscurrents that are difficult even for experts to understand. I think most novices would be better served starting out in less complicated, less
volatile markets (if you lose all your trading stake in the first ten days of trading - it's kind of hard to make a comeback). Robyn
Mark Jurik wrote:
> Pardon the cross listing, but I need as much feedback as I can get on this....
>
> CME plans to launch the E-mini NASDAQ 100 index futures contract, scheduled for early June. The NASDAQ 100 concentrates on high-tech and Internet stocks, and is 1/5 the size of a regular NASDAQ contract. It will be open for electronic trading, 24 hours/day, on Globex.
>
> I was asked to collect words of advice for novice traders, who may be attracted to this E-mini because of the small contract, fast fills and market volatility. For example... What are the "gotchas" in 24 hour trading? Is electronic trading all pros and no cons? How does slippage and error correction compare to broker-mediated trading? What's the best way to trade a volatile market like this?
>
> Any feedback ( private or public ) is most appreciated.
>
> - Mark Jurik
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