what is the consensus on e micros?
- Thread starter 1a2b3cppp
- Start date
For a newbie futures trader like me, micros have been a blessing
Having to trade 1 ES contract was super hard for me in the beginning, because you technically have 1 entry and 1 exit. Unless you are a pro's pro who already has an edge and been in the game forever, being consistent with 1 contract was super hard. Heck you might have a good entry, but where shall you exit? You could exit at A, B, or C. But you can only exit 1...
Now with the addition of micros, you could enter at A(proportionately to the risk and confidence you have on the entry) and let's say the market breaks below A and goes to your next entry level B(still within the risk level from A but now a LOWER risk and increase in confidence) you have the option to enter more contracts here.
Same thing with exits- Now instead of having to wait for the perfect exit (almost impossible as market can do anything) with 1 contract, you can get out of your bad entries (A) at break even, and let the positions you entered at B ride. Or you can manage your exits in fifths, thirds, halves. The flexibility is amazing and I don't mind the cost of commissions.
With the introduction of micros, my profits have become a lot more consistent vs having to trade just 1 contract.
I think the micros are an super good deal for newbies and small account holders. But that is just my opinion.
Averaging down in the micros, into losing position, becomes a viable tactic under conducive conditions for a trader with a small account. It also has the potential to help new trader with the emotions (without becoming derailed) that will surface under trading with money.
Yes, one is paying more in commissions thus it is more costly in that sense. However IMO the benefits outweigh the cons. If the goals are to not only preserve ones small account while learning but to also increase the possibility of making money too.
A trader with a small 5000 dollar account has a better chance of learning enough to become a profitable trader by trading the micros. He will more likely blow up trading the ES as he learns and just give up.
Averaging down in the micros, into losing position, becomes a viable tactic under conducive conditions for a trader with a small account. It also has the potential to help new trader with the emotions (without becoming derailed) that will surface under trading with money.
Yes, one is paying more in commissions thus it is more costly in that sense. However IMO the benefits outweigh the cons. If the goals are to not only preserve ones small account while learning but to also increase the possibility of making money too.
A trader with a small 5000 dollar account has a better chance of learning enough to become a profitable trader by trading the micros. He will more likely blow up trading the ES as he learns and just give up.
Perhaps testing their conduciveness for new traders with small accounts? Or perhaps the scalper has a small account and is good at scalping but wants more flexibility in averaging down and exiting utilizing more contracts. That is, making it possible for multiple entry and exit points while minimizing the potentiality of destroying his account in the process. Or perhaps he is trying to help the brokers make a little more? LOL
A more fair (and lasting) solution would be fractional cash settled contracts. The one issue with such is that they if unrestricted tend to clutter order depth. But I am sure that could be solved in some way, we're now firmly in the era of massive computing power after all.
If you trade the micro's be aware that you are more likely to see rinse jobs which did not happen on the larger contract. Below is an example.
NQ (left) prints a 2T. MNQ (right) takes out the prior swing high, luring in short covering & longs. If you trade the micros you may want to take your signals from the larger contract.
.GIF)
NQ (left) prints a 2T. MNQ (right) takes out the prior swing high, luring in short covering & longs. If you trade the micros you may want to take your signals from the larger contract.
I’ve always felt that they would be optimum for swing trading with modest accounts.
Having said that - in reality they’re likely seeing quite a bit of scalping from marginally capitalized day traders - and the cost structure for micros is NOT attractive for that.
I can envisage discount brokers with 60 day lifespan accounts for manual scalping warriors in the micros. Turnover city.
YMMV - I wish everyone good fortune!
Having said that - in reality they’re likely seeing quite a bit of scalping from marginally capitalized day traders - and the cost structure for micros is NOT attractive for that.
I can envisage discount brokers with 60 day lifespan accounts for manual scalping warriors in the micros. Turnover city.
YMMV - I wish everyone good fortune!
If you trade the micro's be aware that you are more likely to see rinse jobs which did not happen on the larger contract. Below is an example.
NQ (left) prints a 2T. MNQ (right) takes out the prior swing high, luring in short covering & longs. If you trade the micros you may want to take your signals from the larger contract.
View attachment 215005
The charts look exactly equal. What's the beef?
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I find the inferior fills and the cost prohibitive for scalping. Better to use the NQ mini. I have not tested the ES.
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