Best U.S. index to trade?

I concur with the posts so far in this thread. They are all informed comments.

I was drawn to the irresistible attraction of the DJIA (YM) from the outset. However for leading a team I include all liquid index futures for playing, ES being the most liquid.
:)
 
Quote from Cheese:

I concur with the posts so far in this thread. They are all informed comments.

I was drawn to the irresistible attraction of the DJIA (YM) from the outset. However for leading a team I include all liquid index futures for playing, ES being the most liquid.
:)
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Still playing, you still have to know what you trade, and I'm sure there is at least ten components in the ES that you have no idea what they do.

No offense, as I'm sure a lot of the traders reading this would agree, so that's not just a comment about you.
 
Quote from increasenow:

but PLEASE, PLEASE, PLEASE, PLEASE tread lightly with the DAX as many will tell you...the BIGGEST profit potential but also could really HURT!!!!...the EMD seems to have a wide spread and very thin volume also...this is all my opinion...if you have never traded before, study , study and study and papertrade and simulator trade...before you even try the YM...much less the DAX...
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I'd suggest five years of backtesting before anything. A lot of people would be surprised how much you'll learn about trading just by backtesting for a few years. Then, you'll start to think about how to implement your strategy, and that'll be the other part of your training.
 
Quote from bwolinsky:

I'd suggest five years of backtesting before anything. A lot of people would be surprised how much you'll learn about trading just by backtesting for a few years. Then, you'll start to think about how to implement your strategy, and that'll be the other part of your training.
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Whatever value can be drawn from backtesting, it is insufficient to establish the metrics of a market; this is because OHLC is a skeletal and insufficient input.

However for some, backtesting is their predetermined approach to markets and certainly for backtesting amateurs, its limitations can misguide and even impede understanding and optimal/maximum use of the profits markets offer.
:)
 
Quote from bwolinsky:

This is very simple. NQ or ND or the .NDX derivatives.

Here's my reasoning:

Every single person on this site loves their computer. They know technology like the back of their hand. It is only 100 stocks. The ES is 500 stocks, something is always moving up or down or in both directions in this index.

I trade QID and QLD because I find that they move directionally where I expect them to, and I'm aware of nearly all of the NAZ100 components in them.

You take tomorrow. If you've looked at my system at anytime, you could probably guess what I'm going to do tomorrow, and why is that?

You got CSCO surging after hours and it brought all of the components up with it. I just have to guess more about the group, than about 500 stocks. Tech as a sector is predictable in my opinion, and highly directional. You won't have to worry about a couple hundred components skewing your ES trades.

Most every tech stock in the NDX moves in the same direction on any given day. So, I've found, if I'm right about the direction, I don't have to worry about maybe 1 or two components that are a half percent of the index increasing or decreasing by tens of percent overnight to ruin my trade.

So, I guess I give a big thumbs up to QQQQ, QID, QLD, ND, and NQ contracts. Highly directional, and, by now, I would expect anyone on this site familiar with at least 60% of the companies of the index.

Just like pundits say, "buy what you know", well, I've been on computers since I was 6, so I'm definitely familiar with all the components. You got too many different sectors in broad indexes like the ES, and way too many, in my opinioin, to ever be succesful long term trading the ER2.

So...yeah. I'm sure that you can see that all of you probably are familiar with these components, so why not trade what most of the people on this site and you know?
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Very insightful post...so...you would be saying NQ is up tomorrow?...do you follow AAPL. RIMM, GOOG intraday divergences for the NQ to snap back to that level?...how many NQ contracts do you trade at a time?how long per trade?how many NQ trades per day?
 
Quote from Reaper Rampant:

Any thoughts on trading the full S&P 500 contract?
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Yes, stick to trading ES on Globex. The S&P pit contract will eat you alive.
 
Quote from bwolinsky:

This is very simple. NQ or ND or the .NDX derivatives.

Here's my reasoning:

Every single person on this site loves their computer. They know technology like the back of their hand. It is only 100 stocks. The ES is 500 stocks, something is always moving up or down or in both directions in this index.

I trade QID and QLD because I find that they move directionally where I expect them to, and I'm aware of nearly all of the NAZ100 components in them.

You take tomorrow. If you've looked at my system at anytime, you could probably guess what I'm going to do tomorrow, and why is that?

You got CSCO surging after hours and it brought all of the components up with it. I just have to guess more about the group, than about 500 stocks. Tech as a sector is predictable in my opinion, and highly directional. You won't have to worry about a couple hundred components skewing your ES trades.

Most every tech stock in the NDX moves in the same direction on any given day. So, I've found, if I'm right about the direction, I don't have to worry about maybe 1 or two components that are a half percent of the index increasing or decreasing by tens of percent overnight to ruin my trade.

So, I guess I give a big thumbs up to QQQQ, QID, QLD, ND, and NQ contracts. Highly directional, and, by now, I would expect anyone on this site familiar with at least 60% of the companies of the index.

Just like pundits say, "buy what you know", well, I've been on computers since I was 6, so I'm definitely familiar with all the components. You got too many different sectors in broad indexes like the ES, and way too many, in my opinioin, to ever be succesful long term trading the ER2.

So...yeah. I'm sure that you can see that all of you probably are familiar with these components, so why not trade what most of the people on this site and you know?
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I agree. The NQ contracts may be more directional. I'll have to check this out. Good stuff!
 
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