Trade to Win - Proven Strategies to Make Money

c06 JWBT016-Busby October 10, 2008 20:38 Printer: TBD

The Path of Least Resistance 79

FIGURE 6.9 A 15-minute Nasdaq chart on March 26, 2008. The Nasdaq trade

was made as prices moved down in the long bar that is the second one from the far

right.

with the CME and became part of its financial holdings. Like other equity

index futures, there are two Dow contracts. The big Dow trades for $10

per point and the mini trades for $5. That feature of the mini Dow makes

it a great place for beginning futures traders to learn the ropes. The hours

of the mini Dow are identical to those for the mini Nasdaq and the mini

S&P. Electronic trading begins at 3:30PMon Monday through Thursday.

On Sunday, trading starts at 5:00PM. The electronic exchange closes the

following day at 3:15PM. Again, margin requirements are similar to those

for the other index futures. Also, if one holds contracts from session to

session, he is holding positions overnight and a far greater margin or ac-

count balance is required. For that reason, I prefer day trading these futures

contracts.

When I trade the Dow, I go long on the ones and short on the nines.

Many Dow traders may disagree with this approach but through observa-

tion I have determined that for my strategies these entry points are most

advantageous.