First let's make it clear what E-Mini represent and why are so important to traders. "E-mins" refer to a series of futures contracts created by Chicago Mercantile Exchange that have become extremely successful and popular with the traders. Futures have some subtleties that make them different than stocks and ETFs but they are one of the best instruments for day traders.
There are now many futures e-mini available to trade now but at The Trader Institute we trade all the relevant ones: ES (S&P500), NQ (Nasdaq100), YM (Dow30), 6E (Euro), etc...
There are many advantages for trading E-mini futures contracts instead of stocks or ETFs and you can read some of them below:
- It's just as easy to go short as to go long and there are no restrictions when, how and availability of shares to borrow like for stocks.
- E-minis offer very manageable margins, in addition to high leverage increased leverage compared to stocks.
- Almost 24hrs/day trading for 5days a week, this allows one to avoid the overnight gap risk that stock experience all the time.
- Enormous liquidity making the narrow bid-ask spreads and easy to get large orders filled with minimal slippage during normal market conditions.
- Electronic trading online from all over the world using an internet connection.
- Competitive trading omissions/fees due to large competition.
- for USA traders there are also some tax advantages compared to trading other instruments.
Now that you know why it makes sense to consider e-minis as day-trading instruments the question remains how to make money trading them. The number one recommendation we have for newbie traders is to get a hold of an experienced and reputable mentor. Do not skimp on the fees as you may pay it back multi-fold by experiencing loses from trading if you use the wrong mentor.
The mentor will teach you how to manage your risk and how to take advantage of the market moves.
At The Trader institute we have probably the number one expert in using Volume Profile for trading e-minins as well as other trading instruments. The method that Simon has developed over the last 10 years its easy to understand and moreover you get to ask questions from day one if you need additional help. Although we do not call the membership to The Trader Institute (TTI) mentor-ship it is in fact very involved as you get the kind of support that you don't find anywhere else in the industry.
The subject of trading e-minis is a complex one and it would take a bit of time to get ready to trade for a completely new trader however the potential reward for the successful trader is substantial. We believe that serious and dedicated traders can become successful at trading the markets and become able to have a comfortable lifestyle but it will require a fair amount of work to get to achieve this goal.
At The Trader Institute we are providing the education and we also can recommend ways for traders that do no have a large amount of starting capital to get funded with prop firms in order to be able to accelerate their wealth accumulation.