I understand the ES was one of the first real popular emini products, but compared to all of the other small sub-$1k contracts, it's one of the most difficult. 
Why is the ES so difficult compared to NQ, CL, GC, YM, etc?
- Thread starter tenthousandmen
- Start date
Quote from tenthousandmen:
I understand the ES was one of the first real popular emini products, but compared to all of the other small sub-$1k contracts, it's one of the most difficult.
I think because the es range is so small.
It's very choppy until its not.
Quote from tenthousandmen:
I understand the ES was one of the first real popular emini products, but compared to all of the other small sub-$1k contracts, it's one of the most difficult.
To me, on the contrary.Yes,at first,it is the hardest product to trade,but once you figure out the story it is the easiest product to trade.Just imagine how many systems applied to the ES,open up your chart,break it into components set,imagine all the breakouts,pullbacks,MAs,ORs,MPs system on your screen,imagine you have the right to chose from them...
Imagine all the system living for today...
Saying that the ES contract is "difficult" does not really say much.
I think those who decide to attempt mastering one instrument and exclusively day trade ES face some challenges, because the volatility tends to contract (6 point RTH range on Friday) for long periods and it tends to backfill a lot. For a trader who does not trade anything else, it thus becomes extremely easy to get cut to death by a thousand paper cuts on such choppy days if one does not know how to trade them.
When the R/R per each average day trade is small, which is often the case with ES, it is very hard to get ahead unless you really know what you are doing. With other instruments you may get a much better R/R on average, such that you can afford several small losses in a row and then make it back and then some on the next winning trade.
Solution:
1) Learn how the ES moves throughout various market phases and trade accordingly. This includes learning when to stay out.
2) Considering watching and trading another more volatile instrument in addition to ES, such that you can select the one that offers the best setup and stay out when ES is choppy.
3) Don`t limit yourself to day trading. Starting sometime next week, perhaps already at the close on Friday, I think ES will offer a good low risk/high reward swing trade.
Just some thoughts.
I think those who decide to attempt mastering one instrument and exclusively day trade ES face some challenges, because the volatility tends to contract (6 point RTH range on Friday) for long periods and it tends to backfill a lot. For a trader who does not trade anything else, it thus becomes extremely easy to get cut to death by a thousand paper cuts on such choppy days if one does not know how to trade them.
When the R/R per each average day trade is small, which is often the case with ES, it is very hard to get ahead unless you really know what you are doing. With other instruments you may get a much better R/R on average, such that you can afford several small losses in a row and then make it back and then some on the next winning trade.
Solution:
1) Learn how the ES moves throughout various market phases and trade accordingly. This includes learning when to stay out.
2) Considering watching and trading another more volatile instrument in addition to ES, such that you can select the one that offers the best setup and stay out when ES is choppy.
3) Don`t limit yourself to day trading. Starting sometime next week, perhaps already at the close on Friday, I think ES will offer a good low risk/high reward swing trade.
Just some thoughts.
you cant really compare ES to something like CL. ES ticks are like a fat pig and it moves at the speed of snail. There are guys trading one lot in CL and on good days pulling 2-5k out of her. How is that even remotely possible in ES when most of the time the range is not even 5 points by noon. Were talking 20 ticks here? Meanwhile CL already popped up 200 ticks reversed 200 popped back up 100 and reversed 50 again, with about 100 10-15 tick moves between every single leg of it's journey. Not only is CL a scalpers dream day swingers can make cha cha on her as well.
ES is something you have predefined ranges set and you load the hell up in clips of 50-100 lots scaling up to 1000-10000 lots and riding her for a point or 3 and dump.. and make 250k a day.
ES is something you have predefined ranges set and you load the hell up in clips of 50-100 lots scaling up to 1000-10000 lots and riding her for a point or 3 and dump.. and make 250k a day.