Make Your Mortgage Payment on 1 Trade a Day, Trading Futures

In the world of trading, less is more. Fewer trades is better. In this article, we are going to show you how to make 1 trade a day and that will pay your monthly mortgage. That is correct, 1 trade, not dozens. Trading Futures, you can make just 1 trade for your mortgage. Watch this...

First of all, to make this claim, we need to know the average monthly mortgage payment. In 2006, it was $1687. According to the National Association of Realtors, with what has happened to housing today, the average payment has dropped to $778. According to Wikipedia, it is closer to $1295. So for the purposes of our article, we are going to use the highest value, about $1700.

To determine how much we have to make every day to make our $1700 mortgage payment, we know that, for trading futures, there are 26 to 27 trading days a month, except for February, which has only 23. Remember, futures trade nearly 24 hours a day and 6 days a week. You can trade futures on Sunday. But the reality is, you might not want to trade every day, or maybe you can't. So lets use only 13 days a month. That would be trading every other day. If we divide $1700 by 13, that gives us $131 a day we need to make to pay our mortgage.

Now here's where trading futures becomes so hot. We are going to use the S&P500 Emini as an example, but many other contracts can be substituted that work the same way. When trading the S&P 500 Emini, for each price fluctuation that goes in your direction, you will make $12.50 per contract. Futures trade in contracts not shares like stocks do. One price fluctuation is known, in the world of futures, as a tick. So 1 tick profit = $12.50. To trade 1 contract, you will need $400-$500 depending upon the futures broker that you trade with. So to make $131, you need 13 ticks. There will be some commission involved as well but we'll account for that.

Here's how you make 13 ticks. Trading futures, in one trade, you don't just go for 1 tick. You want to go for 3-4 ticks at least in a trade. If you need 13 ticks, then we need to do about 4 trades with 1 contract. That is still not a lot of trades. But we want to do 1 trade to make our mortgage payment, not 4 trades.

The answer to make just 1 trade is to trade with more contracts at the same time. Instead of trading with 1 contract for $500, trade with 3 contracts, $1200-$1500 investment depending on the broker. 3 contracts and 4 ticks gives you $136 after commission. Or you can do 4 contracts ($1600-$2000) and 3 ticks and arrive at the same goal. And only trade every other day! 3-4 ticks in a trade is very doable. This is not that outlandish, this is not extreme.

If you were trading stocks, it would be much more difficult. First of all, $1500, what stock could you get for $1500? Stocks trade in 100 share lots. That means you would need to find a stock that is priced at $15 a share. Not many stocks are $15 a share any longer. For each price movement of the stock, you earn 1 penny, or for your 100 shares, $1.00. To make $131 every other day, you do the math. How much price fluctuation, up or down, must a $15 stock move during the day for you to make $131? Basically, trading stocks makes this impossible.

Trading futures is another world unto itself. We are not telling you to trade commodities, which may be very risky for a novice trader. We are saying, trade the indexes, such as the S&P 500 Emini or the futures of the forex (currency trading futures) and you can make your $131 a day in just 1 trade.

Barbara Cohen CIO, Shadowtraders, and professional day trader, specializes in teaching students how they can be trading futures with their own trading system and trading strategies. Ms. Cohen has helped hundreds of traders achieve their goals trading. Find out if trading futures is for you by attending one of Ms. Cohen’s Free Webinars. Check out my Futures Trading Articles. For more information, send an email to shadowsupport@shadowtraders.com or call 866-617-2037 today.