What is an Emini?
Surprisingly, very few people have even heard of an “e-mini”, even though it has been a part of the stock market since 1997. The personal computer and the Internet gave rise to it. When they both came into full vogue, the people at the Chicago Mercantile Exchange came up with the idea for a new, but simple, CASH instrument with which more common folks could afford to get involved in the stock market, as traders…..using their new home computer and trading ‘live’ via the Internet. It caught on very rapidly; in fact, the ‘e-mini’ became the fastest-growing ‘financial instrument’ in popularity in the entire history of the stock market! Folks discovered that trading e-mini’s is the perfect home business! (Note:) The “e” stands for ‘traded electronically only, i.e, via computer, and the “mini” means —’small unit of trade’. In the S&P 500 market where it was first introduced, each point of the S&P 500 Index is worth $50 dollars. So, a trader captures ‘points’ of the S&P Index and each is worth $50 CASH—per ‘contract’ in the trade. The CASH is in your trading account the instant the trade closes.
Unlike investing in or trading ’stocks’, it doesn’t take a lot of money to get involved. Most brokerages allow you to open an ‘e-mini trading account’ with only $2-thousand dollars, yet, you have literally unlimited potential. I just look at it as a great little home business cash flow generator, and I encourage everyone starting out to do the same. Just set yourself a daily goal to make 3 or 4 trades each morning and put $100 – $500 into your pocket. E-mini’s are traded in ‘contracts’ (whereas ’stocks’ are bought, owned, sold and traded in ’shares’.) E-mini trading is short-term—it’s not investing: I’m seldom in a trade longer than 3-5 minutes, often times even less than a minute. I seldom trade longer than the first two hours the market is open each morning. It creates a problem for me: what am I going to do for the rest of my day? Golf? Go fishing? Just goof off?
If you would like to look at something that you could generate a 6-figure annual salary with for yourself (and have problems figuring out what to do with all of your spare time), then you’ll find what I have to share with you here in my blog and on my web site pretty exciting….. [www.emini-forex-trader.com]. I will share with you something stock brokers and mutual fund managers hope you never find out about, because if you do…..and they have you for one of their ‘investor-clients’, I promise you that you will FIRE them immediately. They know this too! For that reason, you’ve never heard them talk about “e-minis” or trading in their many TV commercials or magazine or newspaper ads. It’s always just about — ‘investing’ –for the long haul, with diversification. They want the public to look at them as the ‘professionals’ ….much more competent to make financial decisions for their customers than the customer is for him or herself.
I laugh out loud every time I see the Edward Jones TV commercial of the doctor talking on his cell phone to a man standing in his kitchen. He’s telling the guy to take a sharp knife and perform his own surgery on himself. The poor guy has this horrified expression on his face as he says back to the doctor: “But, doctor, shouldn’t you be doing this?” Then the announcer’s voice comes in saying: “It wouldn’t be smart to have a carpenter doing your surgery …or even doing it yourself. Neither should you be making your own financial decisions. Let our ‘professionals’ do your financial planning for you. We are America’s best mutual fund…. etc. etc… ” As I say, it makes me laugh every time I see one of their commercials.
Besides keeping the public ‘in the dark’ about emini’s and self-trading, the real irony is what they do with their customers’ money that has been turned over to them to ‘manage’. It’s a fascinating story. It will probably be a real eye-opener for you as to just who really makes money in the stock market!
For you see….. while they preach ‘investing’, they themselves are traders….trading all day, everyday with their client’s money, while the client is thinking that he is a long-term investor. On the New York Stock Exchange [alone] some 2-billions shares of stocks change hands several times each day. Obviously, that is not [new] money being invested into new shares of those stocks; it’s shares of stock already in the public market place being [traded] back ‘n forth! TRADING (not investing) is where the ACTION is in the stock market. And, the ‘insiders’….the brokers and mutual fund managers… are first in line where the real ‘action’ is taking place! As we said, it’s a fascinating story.
Come back again….and we’ll continue the saga.
Your comments are always welcome.
