YM versus ES fallacy

Discussion in 'Index Futures' started by increasenow, May 24, 2007.

  1. The YM is overrated it trades about the same daily volume as corn
     
    #31     Jul 4, 2007
  2. the BIG boys...ES and ER2
     
    #32     Jul 5, 2007
  3. PhiliC

    PhiliC

    I second Maxpi's opinion -- I just like it better too. The YM's got a nice feel to it. I also like the OEX at market extremes (used on rare occassions) to catch a turn by going the other way. I only use the OEX when its really stretched out one way. DIA and SPY are nice for longer term positions.
     
    #33     Jul 5, 2007
  4. I prefer ES premarket, better spread than YM.
    And YM during market hours because it trades a bit smoother and a bit lower commissions
     
    #34     Jul 5, 2007
  5. YM could reach 300,000 per day traded
     
    #35     Jul 5, 2007
  6. Pekelo

    Pekelo

    Hehe, so far nobody mentioned that the ES is about 20% more volatile than the YM. So if you are a swingtrader, you get a better move out of ES.....
     
    #36     Jul 6, 2007
  7. Well.. That could be a good thing or a bad thing. I spent 20 minutes trying to show a user the error of his ways today. He was using a 6 pt stop the YM in this current market. The more voliatle the market, the more you can lose too. You need to start with a market like the YM and then move up to the ES and then finally something like the ER2..

    To be honest, Most of our traders should be on a simulator.

    Geoff

     
    #37     Aug 6, 2007
  8. I have NEVER understood the rational that the YM is better for beginners because it's only $5 per tick. That makes no sense to me because it moves so many more ticks at a time because of how large the index is relative to the others.

    think about it......the YM trades at almost 10 times the value of the ES so a 1pt move in ES is equal to a 10 pt move in the YM or $50 for the move. It's the same, it's not YM being worth $5 and ES being worth $12.50.

    one can argue other reasons why the YM may or may not be better suited for beginners but I've read 100 times the thing about it only being $5 per tick and somehow therefor less risk. This just makes no sense to me. It's the same.
     
    #38     Aug 6, 2007
  9. Main thing on that, is there is less slippage when using market orders. If your using limits then your golden.
     
    #39     Aug 6, 2007
  10. It all boils down to one ability to trade. If you can do it then it really does not matter. If you cannot, the market, any market will bleed you to death.
     
    #40     Aug 6, 2007