My trade decisions are 99% based on current supply/demand with confirmations in price action followed by some indicators from your list, I have not yet found a profitable system based on indicators alone (for e-mini S&P), no matter how many used. I assume you are trying to scalp, are you not?
Favorite indicators for trading the S&P500 E-minis?
- Thread starter silvermotion
- Start date
My trade decisions are 99% based on current supply/demand with confirmations in price action followed by some indicators from your list, I have not yet found a profitable system based on indicators alone (for e-mini S&P), no matter how many used. I assume you are trying to scalp, are you not?
by supply and demand do you mean the $ADV, $DECL and $ISSU ?
As a beginner it is wise to only take no risk trades and stay away from getting into edge trading.
You will have trouble keeping your no risk trades as low as 2 to 4 points each.
Do not judge what you can make in a day.
Do simulation when the market is not giving you a low risk opportunity. The time to simulate is not after you reach something or other in a day. Simulate when you do not know what is going on (higher risk trading periods.
I attached a beginner chart that relates to your initial post.
You are correct that the ES offers a great deal of captial daily to traders. It is measured relative to the range of trading and NOT according to sime arbitrary absolute values.
the smallest values a trader can make a day are: 1/4 point, 1/2 point, 3/4 point 1 point and so on. The time it takes to make this much is a small amount of minutes. ET traders do about 1 point a day long term average. Obviously they are screwed up considerably. There are 6 1/2 hours available to trade. So dividing the day into 20 to 40 actions is where it turns out trading happens at a high quality level of taking advantage of what is available. It terms of ET performance this is like saying an ET trader makes 1/20 of a point per trade. That is not posible. What are ET traders doing? They are making a lot of winning trades and an equal numberr of losing trades so it balalnces out that they are just wasting time and not making any money.
do not do losing trades. Simply sideline each time you enter and do not make money. this is a good practice type of thing. always do a few trades where you exit without losing money or just make a tick or two, 2 to four of these a day makes you as good as an average ET trader.
Better question is: what leads the e-mini?
if someone was a hedge fund manager for 2 yrs...wouldn't they know how to trade already?? why hang out at ET and ask other traders on what indicators to use???
no, to put it as simple as possible, what would happen on a real hot day in the desert and only one fella is selling nice cold drinks, only 10 bottles left and 50 people are real thirsty? Same thirst or lack of is present in the markets, so you can either predict probability of this happening (somehow) or go with the flow once it happens. The longer you watch the markets on daily basis, the better your perception skills will become, although that would depend on you mostly.