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From the onset, I must state that there are no e-mini contracts that are “easy” to trade. Some contracts have distinct advantages and disadvantages that make them attractive to each unique and individual e-mini trader. Some contracts are particularly difficult for new traders, especially the ES contract. The ES contract is the largest traded futures contract on the Chicago Mercantile exchange and is populated by professional traders, automated trading, and skilled individual traders. These factors can combine to make the ES (S & P e-mini) contract unpredictable and full of retracements, surprise moves in the opposite direction, and general erratic behavior. I adamantly advise new traders to avoid the ES contract until they have gained a good deal of experience trading in chaotic market conditions. On the other hand, the YM (Dow E-mini) contract can be a bit more mundane and the dollar amount per tick is only five dollars. This makes the YM contract a particularly attractive contract for new traders to hone their e-mini trading skills and not blow up their accounts. I also feel the YM contract trends more reliably than the ES contract, which makes it a bit easier to trade. I should also point out that as a long-time investor I personally trade the YM contract instead of the ES contract. Why? Quite simply, it's easier for me to trade and I am comfortable with the price movement. Is the YM contract for everybody? No, I suppose there are other contracts that are attractive to e-mini traders. Starting at 6 AM CST I trade the 6E (Euro) contract. This particular contract can be trickier than the YM, but also tends to produce some very impressive trending patterns. The most active movement in the contract starts at approximately 3 AM CST and ends at 10:30 AM CST, so you have to be an early riser to take advantage of the benefits this particular contract offers. It is especially active at the open of European trading and then again at the open of US trading. While I have traded the contract at 3 AM CST, it is not something I do with any regularity as I value my sleep. But I do start trading at 6 AM CST and generally find several excellent trades until switching over to the YM at 8:30 AM CST. This particular contract takes a bit of adjustment and I highly recommend a bit of simulated trading before actually tackling the contract with live money as it moves in slightly different patterns than the typical US index futures contract. In summary, I have recommended avoiding the ES contract unless you have a high level of proficiency in that particular contract and instead focus on contracts that offer better opportunities for profitability. I am aware that many e-mini traders are highly proficient on the ES contract, but for new traders I feel strongly that the YM and 6E offer better chances for success. As a footnote, the NQ (NASDAQ e-mini) and several other contracts offer new traders excellent opportunities; I just happen to prefer the YM and the 6E for my personal trading and as vehicles to train new traders. Real Live Trading Doesn't Lie. Spend several days in my trading room and see if you can benefit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.
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e-mini trading, es contract, ym contract, futures contract,
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