Micro E-minis May Be a Better Fit For You
When trading the E-mini, both profits and losses can add up quickly. That may be too fast for some who prefer to get a taste of real-money trading without risking too much too early. Well, have you considered trading the MES? The MES is the “micro” version of the regular ES. MES trading values are 1/10th of the ES. Instead of the ES’s $12.50 per tick, you’re trading $1.25 per tick with the MES. As such, broker funding requirements are typically far less. In fact, Micro trading accounts can be funded with as little as $400. That amount still may be less than ideal, as one should have more of a buffer in case of consecutive losses. The video below explains quite a bit.
Other micros exist: M2K (Russell), MNQ (Nasdaq), and MYM (Dow). See the pattern? Add the letter M in front of the regular NinjaTrader instrument abbreviation and then you have the Micro version. Opening up an MES chart is easy, though micros are not a part of the typical futures drop-down list within various NinjaTrader screens.
Because you will be trading without as much financial consequence, you may feel more open to experiment and try trading with multiple contracts or exit multiple positions at different times. For many, this could be a wise idea as it is a step beyond regular real-time practice trading. It’s the final set of training wheels, if you will. Also, if you are looking to get a sense if trading is something you’d find enjoyable, rewarding, etc., micros are a lower cost of entry option than most other types of trading. Forex has a reputation of being a tainted marketplace for a number of reasons. At least these micros are regulated and you are not in competition with your broker.
By the way, if you liked the signals in the video above and you want them on your own charts, you can buy the Atlas Line, Trade Scalper, etc. from the main DayTradeToWin site here. Good trading!