Should a novice play the ES or NQ?

[pythagoras]

Quote from bobcathy1:

Yes, ES is quieter. But lately not by much. I prefer it personally. It has 500 instead of 100 stocks which makes the movement slower.

It is quiter, but not for the reasons that Mr. Cathy states. The volatility of the index has to do with the volatility of the components themselves, not the # of components.

 

[elephant2000]

And now, for something completely different!

A growing choice for futures traderes is the Eurostoxx50 futures contract. It tends to trend better than either ES or NQ. A plus is the early open allows part time traders to trade it before work.

There's a new web site www.eurostoxx50.co.uk which is dedicated solely to trading this vehicle.

 

[plumlazy]

Quote from pythagoras:




It is quiter, but not for the reasons that Mr. Cathy states. The volatility of the index has to do with the volatility of the components themselves, not the # of components.

I believe that the volatility of the ES is less than the volatility of NQ primarily for one simple reason. The ES spread is thinner than the NQ spread.

Bidding over 1/4's takes more time and energy than bidding over 1/2's.

Here we go !!!

 

[nitro]

Quote from Tech Analysis:



Nitro -

Didn't happen overnight. My tuition cost me over 8 grand in about 6 easy monthly payments.

It's nice to be finally wiring money OUT of the broker instead of IN

WTG!

nitro

 

[nkhoi]

yes, I know a person doing well only after 3 months of studying just be mindful the high leverage 1p move in ES = $50 instead of $1 as in common stock.

 

[nitro]

Quote from nkhoi:

...be mindful the high leverage 1p move in ES = $50 instead of $1 as in common stock.

Huh?

1 point move on 1 ES contract = $50
1 point move on 100 shares of any stock = $100

nitro

 

[nkhoi]

common stock = 1 shr of spy, dia, gm, ge, msft etc...
edit: Huh? the name of the game is leverage

 

[plumlazy]

I'd like to second that Huh?

Huh? huh?

 

[nitro]

Quote from nkhoi:

common stock = 1 shr of spy, dia, gm, ge, msft etc...

1 share?

nitro

 

[nitro]

Quote from nkhoi:

...
edit: Huh? the name of the game is leverage

nkhoi,

I guess I would word it to the novice this way. Wacth ES for one minute and see how many times you see 1 point go by. Do the same for any stock. Now ask them which one they think a bad/inexperienced trader will lose money faster in.

nitro