why the NQ (emini Nasdaq 100) is the best emini to "practice" on...one of the biggest reasons is...the ATR, or average true range for all the eminis is as follows: ES 32 points = $1,600 YM 253 points = $1,265 ER2 22 points = $2,200 NQ 54 points = $1,080 ....so...the max loss, if you will, on 'average' is the least on the NQ per 1 contract...follow the thought?...this is totally my opinion...do not trade based off of it...
ES 32 points = $1,600 YM 253 points = $1,265 ER2 22 points = $2,200 NQ 54 points = $1,080 What does the above mean?
the max average per contract of each emini you would lose on average per day...per the point value of each contract...again...just my opionion and thoughts...the ATR is average high to low trading range of each contract X's the point value gives you the above numbers...
That's how many look at it. I like to use the average absolute range rather than ATR, then divide the dollar range by the initial performance bond (margin). I think that's a better indicator of the "bang for the buck" measure. Even better use the average range of the price bars in your chosen trading time frame.
Your point is a good one, but it should also be understood that the smaller daily dollar range means commissions will take a bigger toll on a percentage basis. Beginning traders should remember this point as well. In addition, while these markets move similarly on a macro level, they move quite differently on a micro level. Thus, the "best emini to 'pratice' on" is a multi-faceted debate, and is not as simple as which one has the biggest daily dollar range.
I totally agree, I guess my thinking is...with 1 contract...easier to take or "see" a 2 point NQ go against you rather and ER or ES etc...
Also in support of the choice of NQ over ES for newbs is an on-target quote from Pa(b)st Prime: "Yet most small traders pick the most tick f*cked market on earth to trade, the E-Mini S&P." NQ for me.