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Traders need to learn to follow a market if they want to
trade the emini market. You need to make sure you understand how the
emini markets trade. This is not to say that you need to know all of
the fundamentals about a given market, but you should have enough
familiarity with the market to know what information is reasonable and
logical or when some news might be a major price mover. With technical
analysis.
The E-mini S&P is a popular sector of many future traders.
The S&P emini trades more than 2 million contracts a day with an
average daily trading range of 22 points in July.
Futures traders using a strategy you outline in your trading program
and read articles how hot to read charts and trade the emini. You need
to know the E-mini can be somewhat fickle and the longer trend some
times is not clear, so you need to make sure to have a tight stop in
choppy markets.
Price flow is important along with adequate volume. You want to
pick a market with adequate price movement to provide a wide enough
range to make a profitable trade. You don’t want so much volatility
that emini jumps all over the place in an inconsistent, erratic
pattern or channeling.
There are various studies of historical and implied volatility, but to put
this factor into dollars and cents, one way of looking at how much a
market might move in a day is the average daily price range. A choppy
market will eat up your trading account.
Even the high volume trader consider a number of factors in
selecting markets and the emini for their trading portfolio, and the
choices you make today may change quickly as market conditions change.
News can have a great influence on the markets especially if you are
day trading the emini futures.
Traders need to watch volume, open interest, liquidity. This doesn’t mean
just a big volume number, which may be the result of large block
trades, look for lots of buying or selling at various price levels
that facilitates getting into and out of positions easily.
A futures market should trade at least several thousand contracts a day
and should be quite active in the month and time period you are
trading. Futures trades should be careful holding positions over night
with out a stop loss in place on their charts.
Here are a few examples of average daily price
•E-mini S&P 500 Index futures – 1 points @ $50/pt.
•Corn futures – 10 cents @ $50/pt. = $500
•Silver – 35 cents @ $50/pt. = $1,750
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