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> The
> basic premise was that the E-mini may not be the best place for a new
> futures trader to start because there are other more efficient markets,
> e.g., CME's Canadian dollar, giving the largest dollar move for the required
> margin.
What a crock! That's my gentle response. What I really think of that is
unprintable. :-)
Tim made the excellent point that you have to be well capitalized in
this business. If a new trader is using so much leverage that margin
requirements enter into the picture, he is almost certain to go broke.
So, while the mini S&Ps are a very tough game, it has NOTHING to do with
margin requirements. My suggestion for new traders is to not use any
leverage starting out. An emini contract controls about $70K of stock so
you should have that much in your account for each contract. Same thing
for any other future. With that kind of capitalization, the new guy can
make some mistakes and still survive. Once he learns the game, he can
start using more leverage, but it's still unlikely that he should ever
lever up so much that margin becomes a factor.
--
Dennis
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