[MadMarketScientist]

A question I'm asked a lot, and I'm sure others is what market should a trader start with. After you learn whatever system and are ready to dip your toes in the trading water you have to start somewhere.

Realizing that it is sometimes system/strategy dependent, I have the following suggestions.

Futures:
Russell e-Mini Futures

Forex:
GBPUSD

Stocks:
QQQQ

All things being equal I think these would give someone the best chance of making it through the learning curves. You have typically good range and volatility, easy to execute, low execution costs and they tend to behave fairly well across a multitude of trading approaches.

Not to say that there are not quite a few choices in each category that could work but given most people have to start somewhere, to me these will beat quite a few others as a starting point.

If anyone else has their picks, feel free to contribute as well.

[TheDude]

I dont think big volatility that you sometimes see in R2K is such a great thing for learning to trade. Swings in volatility often lead to swings in emotion, especially for a starter. I'd go for something like bonds or 10yr that still have their moments, but generally tick a bit slower and less $ magnitude.

[StevenSJC]

Good point but I'd be on the side of the TF over something like ES. If margin is an issue with emini, the Dow e-Mini (YM) could be a good choice (prefer that over the Nasdaq e-mini)

A nice thing with the TF though is you almost always get filled at your limit price if the market touches it, and the slippage is usually minimal. But probably need $7500 to trade. Probably can get by with less on YM.

I used to really like the treasuries, felt they were great for beginner traders like the 30 Year (US) or Ten Year (TY) but I'll be honest and say I haven't looked at them recently - not sure there's enough range - but when there was they were super for beginners.

[ziebarf]

I am starting to think the ZF might be the most beginner friendly. From a price action perspective it is slow moving and reacts to support and resistance well. The tick size is pretty small too..

[Akuma99]

I'd lean more towards the EURUSD than the GBPUSD, the differences are subtle, but it is a little smoother, yet volatile enough for the average joe. For me anything with high liquidity is where I would want someone to start, so some eminis, fx or indices perhaps, something that isn't going to gap the arse out of your trade.

[MadMarketScientist]

Personally I have found that though the eurusd may be a bit smoother than gbpusd it doesn't stretch as far when it moves. Since most trade with technicals I find that the extra movement and range on the gbpusd helps.

Best bet is to do a manual walkthrough backrest and compare results.

[TheDude]

We shouldn't forget the ags either. Corn and soybeans are great for TA. You can read them like a book. $ per tick tends to be a bit smaller as well.

Consider this: why are all newbies drawn in to fx, NQ, YM, ES,... ? The underlyings are so much harder to decipher than the corn crop. Basic demand and supply.

If we work on the premise that all good trades are based on a time frame larger than that the trade is managed on, then the softs, metals, grains etc are ideal as the majority of participants are fundamentally longer term. ES, YM, GBP/USD are stuffed with funds, HFT's, etc.

Words like liquidity are meaningless to someone putting on a 1-2 lot trade. The reason why every newbie is suckered in to the ES etc is because the exchange give the lowest rates....commissions to the newbie/retail firms. They need new money to add liquidity for member firms HFT algo's to fleece day in day out.

If you're gunna trade ES, EUR/USD etc you better know your stuff because thats where the smartest and biggest money is. Same for Bonds 10, 5, 2 yr (although the FI contracts are a bit easier IMO for the reasons above).

Ags may not seem sexy or hot, but this is about money and learning. Sure you may get a limit up move. But thats a learning process. Also, you may get on the right side!!

[Justaguy]

Great call on the GU. The EU for me has so many fits and starts that it can get frustrating. If someone was looking to pop their heads out of the majors, the EURJPY is a good fit. I think both, from my own experience, are great for both swing and intraday positions.