Newbie Trading E-Mini's

[Jeremi]

Hey everyone!

Just getting started trading E-Mini's and was curious if any experts wanted to share some pointers. I am not too good at all the jargon so please explain if you post. Also curious to hear experiences, good, bad, etc... What I really want to know if what to not do! Thanks Everyone!

~Jeremi

 

[GladiatorX]

Use Time and Sales.
Use tick-charts rather than Time charts (preferably both)
Use Order flow.
x
Oh start with the YMU9, easier for beginners in my opinion because 1/10th spread compared to 1/4th ES, easier to scalp because 10points = 1 ES point (4ticks), therefore if you want to get filled @ a support, you have to place limit 1 point above... On the YM if your support proves viable, you'll be in instant profits, with ES you'd need price to move 0.5 to be able to profit 0.25, whereas YM you need 2 movement from entry to profit 1 point, so its easier to secure profits, breakeven and scalp.

Having said all that i no longer trade YM.

 

[Jeremi]

Hey Gladiator!

Thanks for the post!!! Could I please ask you to explain. As I mentioned I am new. So YMU, ES, and terms such as scalp, spread, and the charts & order flow make no sense... I do however understand the difference in the points, ticks, and break even! Regardless, thanks for the post!

~Jeremi

 

[GladiatorX]

Hey Gladiator!

Thanks for the post!!! Could I please ask you to explain. As I mentioned I am new. So YMU, ES, and terms such as scalp, spread, and the charts & order flow make no sense... I do however understand the difference in the points, ticks, and break even! Regardless, thanks for the post!

~Jeremi

Wow.
First things first Jeremi. I hope you weren't planning on trading E-mini's live yet! I'm guessing you just mean that your going to start learning about them.
ES = E-mini S&P500, which is an equity index
YM = Mini-sized Dow, which is the 30 dow jones equity index
ES is traded on CME and YM on CBOT.
They are probably the two markets to focus on depending on what your interested in... E-mini's are MOSTLY equity indices, however their is a highly illiquid Eurodollar E-mini.
NQ = E-mini Nasdaq, which is also an equity index and trades on the CME.

To get filled on E-mini's with a limit order, you must assume price MUST trade through the level, although this isn't always the case, from my experience this is very likely. So make sure you keep that in mind when practicising.

Sounds to me like you've a lot to learn before learning TIme and sales, order flow etc...
Scalping just means low profit targets with high frequency. Popular style for E-mini traders.

The spread is the difference between the Bid and the Ask.
For the ES for example, the spread is 0.25...
Where the Ask = 1000.25
Bid = 1000
(for example)

If you were to place a buy stop order or buy @ market you'd be buying @ the ask, if you place a limit order (below price) then you would technically be buying @ the bid. However its very likely that in order to get filled, the bid will become the ask anyway, so don't get to caught up considering that... Although i feel limit orders are best because they ensure you aren't chasing the market and you're entering long in a falling market...
Order flow is simply the depth of limit orders at either side of the market 5 levels up and 5 down.
So @ the bid, 1000 limit orders may exist and at the ask 100.25 231 limit orders may exist.... You can use this information through practice to your benefits.

Time and sales is a listing of ALL the trades that occur on the market... This gives you important information on momentum, strength of a breakout or S/R, What the big boys are doing etc

Hope this helps x

 

[timsk]

Hi Jeremi,
Welcome to T2W.
This is going to sound rather blunt and maybe even rude - so apologies in advance. If you don't understand the jargon, then I suggest you don't even think about trading real money yet. If you don't know what you're doing, you'll get slaughtered.
YM = e-mini Dow futures contract
ES = e-mini S&P futures contract
Spread = the difference between the bid/offer prices (don't ask what these are, lol!)
Scalp = A style of day trading where by you make lots of small profits very quickly. (NOT recommended for beginners.)
Tick Charts = price charts where each bar represents a specific number of 'ticks' which is the smallest price movement the instrument can make (favoured by 'scalpers'). Most people use time based charts whereby each bar represents a unit of time, e.g. a minute, 10 minutes , an hour or a day etc.
Good luck!
Tim.

PS. Sorry Glad', our posts crossed and I didn't see yours before hitting the submit button!

 

[GladiatorX]

Hi Jeremi,
Welcome to T2W.
This is going to sound rather blunt and maybe even rude - so apologies in advance. If you don't understand the jargon, then I suggest you don't even think about trading real money yet. If you don't know what you're doing, you'll get slaughtered.
YM = e-mini Dow futures contract
ES = e-mini S&P futures contract
Spread = the difference between the bid/offer prices (don't ask what these are, lol!)
Scalp = A style of day trading where by you make lots of small profits very quickly. (NOT recommended for beginners.)
Tick Charts = price charts where each bar represents a specific number of 'ticks' which is the smallest price movement the instrument can make (favoured by 'scalpers'). Most people use time based charts whereby each bar represents a unit of time, e.g. a minute, 10 minutes , an hour or a day etc.
Good luck!
Tim.

PS. Sorry Glad', our posts crossed and I didn't see yours before hitting the submit button!

Ha Atleast it adds a bit of validity to what i said ^^

 

[GladiatorX]

Jeremi. Given your apparent lack of understanding i HIGHLY recommend that you tell me your trades!

I can only expect that if you, from what you currently seem to understand, try to trade the E-mini's, even with 1 contract, your losses will be large and fast.

 

[Jeremi]

Hey Gladiator! Thanks for the posts! You are right... I am learning. I recently signed up with Trader International and I am learning what I can. I am posting here to learn more. Your post have been very helpful! I don't intend on trading live for another month, but when I do, I will definitely post my trades here. There is a huge lack of understanding, so no offense to either you or timsk. I posted here to lean. To learn you must be told what you don't know... even if you think you know it. Thank you for taking the time to explain. It will be good to continue to get feedback from you and others! If you want a laugh... when you said ES... I assumed European Sock Exchange

~Jeremi

 

[GladiatorX]

Hey Gladiator! Thanks for the posts! You are right... I am learning. I recently signed up with Trader International and I am learning what I can. I am posting here to learn more. Your post have been very helpful! I don't intend on trading live for another month, but when I do, I will definitely post my trades here. There is a huge lack of understanding, so no offense to either you or timsk. I posted here to lean. To learn you must be told what you don't know... even if you think you know it. Thank you for taking the time to explain. It will be good to continue to get feedback from you and others! If you want a laugh... when you said ES... I assumed European Sock Exchange

~Jeremi

European sock Exchange???? I never knew there was a sock market! Thats for enlightening me.

If you have any more questions feel free to ask and tell us about your progress.
Just out of interest, do you plan to day-trade or positional trade ? Or are you unaware of your trading personality yet.

 

[Yuppie]

Jeremi...

Jeremi, sent you PM.