Does anyone here trade IWM (Russell 2000 etf) intraday exclusively? What do you think of its intraday trading behavior? I've been playing around with it for the past couple of days, the liquidity is nice and it moves a decent amount so I am just wondering if anyone else trades it?
I mostly trade ETFS but never traded that one before, I like trading QLD, QID, SMH, IYT, EWZ, XHB, RTH...
I considered trading the Jan $77 calls yesterday at .90X$1.00. They closed at $1.40 X $1.50 Hindsight is 20/20 I may start day trading IWM options and OIH options. Both are pretty liquid and OIH makes big moves in either direction almost every day.
I trade ER2 futures and IWM options as my primary trading equity. For several months, i charted the Dow, Nasdaq, S&P and IWM side by side. I choose the IWM over the others because it seemed to trend well and had good volitility.
I am fairly new to etfs but this one seems like it could provide some good opportunities intraday. Lots of volume, some decent volitility and its not as expensive as the SPY or DIA so that makes a difference as far as SEC fees are concerned. I am finding that the key to trading it intraday is to really pick your spots well, way more so than trading typical stocks. I feel like there are a small handful of very good r/r trades everyday in the IWM, its just a matter of being patient and waiting for them to really setup. Because of the liquidity, its so easy to jump in and out but I have found that really actively trading it doesnt work well for me. Of course, I havent been at it long at all
I think you will get better moves and liquidity in the ER2 futures than the ETF for intraday. Lower "margins" for the futures. You can, if you have the accessibility, use the ER2 options to hedge longer-term positions or simply trade the ER2 options outright. Compare the daily moves of the IWM and the ER2 for the best comparison so you can decide better for yourself.
I trade ER2 everyday, for about the last year. Large block trades on ER2 occur before movements in IWM. If you can make as much money consistently trading IWM as you do with other stocks, then you are a good trader. This last week has been volatile and a little scary considering the light volume that is moving the market. Market profile seems to be important in finding pivots for breakouts. I would like to hear how you do trading IWM. I would think trading other stocks would be easier.
nice mkt. i traded it in the past with 1500-2k shares and u can make decent money. behave no much differently than any amex/nyse active issues.
I wouldn't be surprised if volume on the ER2 began to surpass the S&P emini contract pretty soon. The ES has just become so STAID.