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Strategies & Market Trends : E-Mini Pit -- Ignore unavailable to you. Want to Upgrade?

To: gsp6181 who wrote (587)	2/14/2002 11:18:41 PM
From: Susan G	Read Replies (2) \| Respond to of 11288

The reason I love trading the NQs IS the volatility. Many new opportunities all day long. But I've been watching the ES and thinking the same thing. Orderly. No moonshots out of range and sudden snap backs. So I may start trading that on certain days. No spikes like are constant on the NQs...the kind that make you jump out of your chair <g> But to me, it's too much like trading DOW stocks. I've always preferred the rodeo of the nasdaq <g>

To: gsp6181 who wrote (587)	2/15/2002 2:18:13 AM
From: ToTradeWell	Read Replies (1) \| Respond to of 11288

IMO start by trading the ES. It is very liquid and has enough volititity to make you a lot of $. Like you say, it is "orderly" and likes to trend. Why take the extra risk with the NQ starting out? I personally only trade the ES. My goal is to one day enter with 20 contracts, which is $1000. a point. Presently I only enter with 1, but I do add to my winners. I want to trade something that I can add to and increase my position on when I am right. The ES gives you this opportunity. Just give me a few good days a month and I'll be happy. Because the ES moves a little slower, I think its easier to practice good money management. I will often quickly take myself out of a "test" position that is not going my way. This is easy to do with the ES. I don't wait for my stop to be hit. If I'm not right then I want out. Usually I try to loose less than a point when I am wrong. The other day I took myself out of a position with a 1/4 pt loss, and it was the right decision. If the market had gone my way I would have added to my position. It made me feel good to be in control rather than having the market whip me around like it wants. I have a lot to learn. After I have mastered the ES (I have a long way to go) I may look at the NQ, but I just can't think of any reason to do so starting out when the ES presents such a great opportunity.

To: gsp6181 who wrote (587)	2/15/2002 7:54:08 AM
From: the-phoenix	Read Replies (1) \| Respond to of 11288

George: ES vs NQ - Pros and Cons. You already have two quality responses to this great question, but let me add my two cents. Like you, I started with stocks, then moved to the QQQ, and from there "graduated" to the NQs. I now occasionally trade the ES also. My reasons have to do mainly with setups, tho. If I like a particular setup better on the S&P one day than on the NQ, I will trade the S&P. However, for intraday action, I find the NQ more predictable, frankly, at common pivot points such as the 20emas. The S&Ps don't seem to turn as precisely as the NQs at well-known pivots , so I find them sloppier (!) One other possible advantage of the S&P for new traders and small traders is this: Relative risk and flexibility with your trades: Let's say you trade 1 NQ contract and it moves 12 points. You are up $240. Now it moves back against you 8 points. Very possibly, you get out and take your 4 points or $80. Often it will then reverse back in the original direction and leave you behind. Now consider the same situation trading S&Ps, only you trade 2 S&P contracts. The move would be like 3 points (roughly a 1:4 ratio) instead of 12, so you are up $300 (a bit more risk involved. 25% more risk in the trade with 2 S&Ps.) But now you have the opportunity to take partials, but stay in the trade with half your position for the potential big move in your favor. So you take one contract off for a 1 point gain ($50) and bring your stop on the second to breakeven. Now when the market reverses in your direction again, you can ride it with the other half of the position, risk free.