There is a direct correlation between the depth the book and the amount of noise. I switched from YM to ES a few years ago and will never go back to the fake out index again.
That's a valid point but there's no difference between 1 contract and 50 shares of SPY, aside from the fact that it takes a heck of a lot less money to get that 1 contract (50:1 leverage). But, from a charting standpoint, if you are successful trading 50 shares of SPY then you should be successful trading 1 contract.
unfortunately it's not the chart that trade, it's the trader's brain....so put leverage in the picture and trading 50sh is different from trading 100shares and trading 1 contract is very different from trading 2 contracts...
It's not the chart that trade, it's the trader's brain... The only part of your post that is true. Trades are not entered based on leverage (an argument can be made that trades may be exited based solely on (over)leverage however)... Which brings about my point. Leverage is a risk management tool. What is deemed as excessive risk (aka greed) is what causes fearful brain activity. If/when it is believed by the trader that he/she is properly funded for the trade size, leverage does not cause fearful brain activity. Like the hedgies nowadays. An imbalance of greed with a sense of immunity, overtaken by fear. When you trade consistently well (whatever that means for you) because trading well consistently is what you do, a trade is just a trade. In this case, size is not important, leverage or no leverage. Osorico
Here is the beauty of trading the ES. In days gone by i used to trade the BIG SP500 car over the phone when a single handle was worth $500.00. Those days were before futures trading was electronic, stocks went electronic before futures. There you were, a small fish at the mercy of the "LOCALS". Forget limit orders, market orders were the only way to travel if you wanted to know where you were as a daytrader because fill reports were NOT reported back to you in a reasonable amount of time unless you were a BIG shooter. The pit local yocals were not the most friendly pals of yours when you were dealing with a small account and they were members of the exchange. (READ, membership has perks). Get the picture? Ok, lets move on and progress to when electronic trading was the norm. Good Grief Charlie Brown, how easy could they have made the game for the small trader? I mean it was like penyies from heaven compared to being a sucker throwing in MKT orders to the sharks. How easy was it now? Holy cow, you actually could use orders that were "REALLY" filled when price moved through your limit order compared to getting a fill report an hour later when price retraced back THROUGH your actual fill and now you have lost a couple grand and the phone rings telling you your order was filled. You get the picture, correct? Thats why i stuck with futures trading after stocks because i was in agreement with a pundit here and there that electronic futures was a coming to you. The rest is history. Electronic trading made the game extremly better for the little guy. The small trader had a fighting chance with his/her own individual gameplan. Lets face the truth, many that have tried and failed are the ones that say it is impossible to win at ES, or NQ. That is a copout of "SELF" when after losing miserably they come with a dozen reasons why the ES, NQ can not be conquered. When those that "tried and failed" make statements about how the game is rigged and caqn not admit to themself they bombed out .............i just smile and look forward to the next trading day as a simple "KISS" oriented daytrader knowing full well there is always a new crop of fools to keep me smiling. Thanks losers, thanks a lot. PS: spydertrader should pick up on a couple misspelled words because he in his heart knows i am a super trader and my claim that " a change in price is the call to action and volume is the REACTION" is 100% correct and spelling or grammer is all he can pick on me for. hahahahahah
Are these the only entries you take during the day? Is this just in the current trading enviorment or do you change your entries as the market changes? And are these entries just during the morning hours? Thanks for any answers.
I concur - just because someone says it can't be done, doesn't mean it can't. I've spent my entire life proving that, and trading the YM profitably is just one more example.