YM Volume vs. # of participants

brownsfan019 · May 28, 2007

Quote from TL Trader:

This is a copy and paste and obviously not everyone will agree. But I thought it relevant.

"3. Better Spreads than the E-mini S&P

The mini-sized Dow has the same specifications as the popular E-mini S&P contract:

* One point in the E-mini S&P = about ten points in the mini-sized Dow
* One point in the E-mini S&P = $50; ten points in mini-sized Dow = $50

The key here is that a trader will get picked off on stop runs less frequently if he or she uses the CBOT mini-sized Dow over the E-mini S&P.

Why is this? The E-mini S&P moves one point in four quarter-point increments. The mini-sized Dow will move an equivalent ten points in ten one-point increments, giving the trader six extra places to place a stop or target.

This is a huge advantage over trading the E-mini S&P and will save a trader a lot of money over the course of a trading career.

By trading the mini-sized Dow, the trader is essentially cutting the spread by 60 percent. That money goes straight into the traderâs pocket."
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TL - what that fails to discuss is slippage issues. You won't get much (if any) on the ES and you can get considerable slippage on the YM depending on the size you are trading.

The size/slippage argument may be minimal if you are not trading size, but if/when that happens, you'll quickly realize the YM simply won't cut it for this reason and this reason only.

john99 · May 28, 2007

Quote from bighog:

Their is a huge myth out there that volume can lead price, it is just that.... a myth. If a trader can understand what formed the support/resistance, etc and other simple TA on the charts he/she should be able to know what said traders will do next as price leaves the chicken tracks on the chart....chicken tracks if understood correctly will put you in the other traders heads...so you will think like them and thus you can plan ahead. ..

Think what the players are doing, think where they will be influenced by the basic human mind when price movements ping the players fear, greed and self preservation instincts. What makes traders react? Right, fear and greed and saving their own ass. Good luck...and remember this....To understand the other players enough to where you feel your intuitive mind is in sync with theirs is going to require a lot of screen time. Experience is where the mental aspect of trading works wonders, you will never hone the skills any other way.

When i first got into trading futures after stocks i was surprised when i read about how long many big shooters said "IT takes a few years".....the truth be known,,,,they are right, the hard part of trading is not the mechanics ....it is the getting inside the heads of others to know what you are doing. Thats when you slice bacon daily. ..
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Good post. Experience and learning price action are essential.

increasenow · May 28, 2007

even the pros recommend the YM...can you, as ES pros, recommend that newbies start with the ES???

brownsfan019 · May 28, 2007

Quote from increasenow:

even the pros recommend the YM...can you, as ES pros, recommend that newbies start with the ES???
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What 'pros' are recommending the YM over the ES? If these pros are trading any size whatsoever, they would not be recommending the YM.

Perhaps the YM is recommended as the 'kiddie pool' but sooner or later (maybe) you'll want to swim in the deep end.

increasenow · May 28, 2007

right on Browns fan..by the way Brady Quinn will rock as your QB...BIG time...remember Brain Sipe?

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YM Volume vs. # of participants

brownsfan019

john99

increasenow

brownsfan019

increasenow