Out of the 3 indices which one is best to learn how to trade better based on TA ?

Discussion in 'Technical Analysis' started by neveral0ne, Jun 17, 2010.

  1. I was comparing ES YM and NQ trying to see which one has the most fluid / easiest to read movements , even tho they all move fairly similar, which ones do you guys recommend for a beginner ?
  2. pspr


    I would suggest the NQ. At $5 a tick it is the least expensive when losses out pace the wins. It's best to get your trading to work on a simulator before moving to live trading though.
  3. Trading on TA is a sure way to end up losing money,
    so go for the Dow, it is less volatile so you'll reduce your losses.
  4. the best one to 'practice' on is the NQ...it has the lowest $$$ amount per daily high to low range...IMO, over time, the TF (mini Russell 2000) is the best bargain for your trading money when considering and comparing...daytrading margin, per point value, high-low range, tightness of spread and high volume liquidity...I personall only trade the TF when trading the index futures...
  5. In this business it is imperative to be responsible for your trading decisions. You have to ultimately make the call on which trading vehicles best suit your trading plan.

    I am not saying don't ask questions" I ask questions all the time. My point is "the buck stops with you" (each trader).

    Getting to your question, you tell us, which market gives you setups based on your trading plan/style/time frame.

    If you are asking on your behalf, then watch the markets as much as possible, do replays over the weekend, print out charts.There are some good journals to follow on this site.

    Some people feel sim trading is worthless I disagree, show me someone who can have the discipline to sim trade their trading plan, have the commitment to try and improve their skills while preserving one of their most important tools, capital and I think that person will be successful at trading.

    I have been in the building industry for 25 years, it has been a constant learning process, trading is no different.

    Sorry went off on a tangent.
  6. schizo


    They all move more or less in tandem. Frankly, if I were forced to trade YM or NQ, I prefer to do so by looking at ES. In fact, I traded YM once by monitoring the chart of ES and it worked out quite well.

    However, ES is the most efficient of the three. First, the spread is tight as it can be: 1 tick. Hence, any worries about slippage can be thrown out the window. Second, it's very technically oriented. If you're a price action guy, which I think you are, ES works beautifully around those important technical markers like S/R.
  7. Thanks everyone and schizo :D

  8. Agree 100% :cool:

    Although I think if you traded these 20-30 years ago, TA might be somewhat valid. So if you are going to sim trade using old data or backtest using old data, could be worthwhile.
  9. It's very simple. Whatever method you're using...backtest it on the Emini ES, mini-sized Dow YM and Emini NQ. Look carefully at your backtesting results and trade the one that produces the most profit via your method because the goal is to be profitable.

    In fact, the few profitable traders I've met...their primary trading instrument (the one that makes them the most profit) is different than what they prefer to trade. Simply, stick to the goal of being profitable and if that requires you to trade something not at the top of your "favorite list" but at the top of your backtest result list...so be it.

    You can then trade your favorite trading instrument as secondary. However, hopefully your backtest results will reveal the same trading instrument as the one at the top of your favorite list. Therefore, as Tonkadad implied, your trading plan will decide for you which trading instrument to trade and not someone's recommendation of which trading instrument to trade.

    Last of all, you should do that backtest a few times per year to ensure you're giving yourself the best chance at being profitable.

  10. ====================
    ES of the 3, but actually learning to trade with leverage/ES,
    franky is the worst way to do it.

    Why leverage ignorance?? Thats where we all started out, ignorant, so thats another reason so many lose....:D !

    One[1] share of SPY would be better, but you may have to see what i mean by ''costly experience'':cool:
    #10     Jul 1, 2010