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![]() | Number of Markets to Trade Last edited by ant; 09-08-2006 at 08:23 PM. | ||
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| Status: Super Moderator Join Date: Aug 2006 Location: Tokyo Posts: 3,618 Thanks: 545
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Blog Entries: 4 | The YM moves similary to the ES. On any given day the YM will have a 50 point minimum range. More common are ranges within 50-100 points. I do believe that one can trade for a living with index futures only. Of course there are days when the markets do absolutely nothing like on Sept. 6, 2006. I do think it is a matter of a traders satisfaction. I have no problem trading the dow only while others may find the need to trade other markets. As long as you are able to trade one market profitably, I do think one has the ability to trade any other market successfully. All that is required is observation of the underlying instrument to understand its personality. I think the problem with alot of traders is that they jump around too much from one market to another without truly being an expertise in one market.
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![]() | I don't think you will have trouble with a dry spell if your speciality is index futures. | ||
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| Status: Super Moderator Join Date: Aug 2006 Location: Tokyo Posts: 3,618 Thanks: 545
Thanked 1,346 Times in 484 Posts
Blog Entries: 4 | Quote:
Find a market that interests you and learn it thoroughly. I think all traders need to have at least one market that they can call it their bread and butter.
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![]() | Just learn a handful of different markets. That way, you can always move towards where the action is. | ||
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| Status: Super Moderator Join Date: Aug 2006 Location: Tokyo Posts: 3,618 Thanks: 545
Thanked 1,346 Times in 484 Posts
Blog Entries: 4 | The YM can be traded using a tighter stop than the S&P. My setups use a 10 points stop with the YM. When trading the ES, a 1pt stop is guaranteed to get stopped out. The liquidity is thinner compared to the ES. This makes it alot easier to spot volume on the tape without risking any slippage. There is also the psychological side when trading the YM. Greed plays a big factor in trading. Many new traders will refuse to take a 1-1.5 point profit in the ES just to see their stops get taken out. In the YM, a 15 point profit is alot easier to take than a 1.5pt profit in the ES. When buying the test of the lows or shorting the test of the highs, the ES tends move 1+ point before reversing. This hurts alot of new traders using tight stops. In the YM, price will usually stay within 6-8 points. Aggressive and experienced traders trade the S&P. For new traders, the YM is a good contract to begin with. Price does not move as rapid as the ES. Market profile works really nice with the YM as well. This is probably the main reason why I trade it.
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