Jordan Schleider NQ Trader on Price Action Trading.
Hi all I am Jordan Schleider founder and head trader at NQ Trader. NQ Trader is a boutique futures trading school. We specialize in teaching and trading price action which is a form of technical analysis. Price action trading looks at candles and price movements to determine reversals of price movement. The system itself is extremely accurate at predicting price movements up to the tick.
I trade an E-mini futures instrument called the NQ and I scalp it, which means trading for very small targets. The NQ is considered an equity index in the financials class of the futures market. While similar to commodities in design it has much more liquidity. It also falls into a similar category as Forex but tends to be a much easier instrument to make money at consistently.
Over the years I have developed a very exacting system or strategy based in price action and the compiled statistics of past price movements. Using these statistics I produce exact entry and exit points for all trades with a complete set of rules governing all situations.
Some of the ways I use to spot entries are by using trend lines. Trend lines on the surface are a very simple concept. You look at a trend and expect it to maintain the direction of the trend for a period of time. Let’s try and imagine a mountain rising up out of the ground to a peak. It might look like a giant capital A. The trend would be a line running up or down the right or left side from top to bottom or bottom to top.
The idea is that if you continue this line from the bottom up it would be consistent for the most part. There might be times when the side of the mountain drops away or rises above the line, but it always returns back to center. These small deviations away from center are where we look to make money. As we see the price fall away we might take a position long, waiting for the price to move back to center. As the price increases or moves back to center we take our profit.
Alternatively, when the side of the mountain rises too rapidly above the centerline or trend line, we might take a short position, and then we would be looking for profit as the price falls back in line with the center or trend.
This is just one of the many ways to look at price movements to determine trend and be able to make money in the futures market. Price action also works well in many other markets for spotting entries into trades.
If you are interested in learning more about trading futures or price action trading you can always contact me at NQ Trader. Once again my name is Jordan Schleider. The name of my futures trading school is NQ Trader. My email address is Jordan@nqtrader.us or you can reach me by phone at 1-754-800-1810.
Jordan Schleider and NQ Trader on Margins
This is a short article on margin requirement for trading futures by Jordan Schleider founder of NQ Trader. Jordan Schleider is the head trader and an expert at scalping the e-mini’s. He has over 30 years of trading and investing experience in many different financial markets.
For the purpose of this example, let’s assume the intraday margin required is $500 per contract traded. This is standard with many futures instruments today. If you want to trade during the day, you are required to have enough money in your account to at least cover the intraday margin and commissions. It is sort of like a security deposit plus some cushion that the brokerage requires.
Let’s say you have $600 in an account and your margin requirements are $500. You will be able to trade 1 futures contract. In this example your maximum risk exposure would be about $100. As soon as you hit the buy or sell button the broker puts an electronic $500 hold on the money you have in your account and you will have a $100 available balance. This amount will be called your excess liquidity. Next the broker will deduct the one way commission or cost per turn which can vary, but the average is about $2. This amount is deducted from the available balance or excess liquidity so your new balance would be $98 plus the $500 on hold.
If the trade goes in your favor by $30, your available balance will move up to $128. When you close the trade you get charged another $2 commission, so your balance is now $126, then the security/margin is released, and your balance goes to $626.
Take the same example with the trade going against you. If you lose $30 on the trade your available liquidity would drop from $98 to $68. When you close the trade you get charged another $2 commission, so your balance is now $66, then the security/margin is released, and your balance goes to up to $566. Your maximum risk exposure would still only be about $100 or the amount you have in your account over the minimum margin requirements.
This maximum exposure can occur if you do not close the trade on your own or you run out of liquidity which in our example is $100. In this case an automatic margin call will take place and close the trade for you when your account drops to the $100 threshold. The margin call will initiate at the depletion of your excess liquidity and another $2 commission will be deducted from your available $500 margin before it is released. Now your account balance is $498. Your maximum risk and loss was $102. There is a possibility that your broker will charge you for the margin call. This is usually a small fee and there could also be a broker assisted trade fee.
You will always have the margin amount left in your account minus any fees. So in summary, the margin is like a refundable security deposit. You would always need a few more dollars than the margin requirements to trade, that’s why I started the example with $600.
Thanks for taking the time to read my article. If you want to contact me at NQ Trader my name again is Jordan Schleider and my email is Jordan@nqtrader.us.