Micro E-Mini Futures?

[frontrangeflyer 11]

Hey Team,

I recently opened up a futures account and have started successfully trading Micro E-mini contracts (S&P 500, Nasdaq 100, and Gold) after day trading stocks.

Anyone in the BBT community trading these micro-contracts?

Advantages are:

• No PDT rule
• Can trade accounts as small as $2K
• The Micro contracts (introduced last year) are suitable for new traders
• Companies like TradeStation offer no/low commissions on the Micros.

Buck

[Rob C 826]

4 hours ago, frontrangeflyer said:

 

Anyone in the BBT community trading these micro-contracts?

 

Hi Buck,

I am starting to learn how to trade futures. I have been working at it for about 4 months now. Still just bar to bar simulation (ES) and taking classes. I am hoping to be live by the end of the year. I am using Ninjatrader and like it so far.

Rob

[frontrangeflyer 11]

Hey @Rob C, That's great to hear!

I switched from live trading stocks to live futures (MES, MNQ, and MGC) in the last couple of weeks. Have been profitable.

I've been looking at NinjaTrader, but have a lot invested in TradeStation and ThinkOrSwim (I mainly execute trades on TradeStation), so don't want to add learning a new platform just yet.

Maybe we can chat with @Andrew Aziz about a futures focus group within BBT.

Buck

[Rob C 826]

6 hours ago, frontrangeflyer said:

 

Maybe we can chat with @Andrew Aziz about a futures focus group within BBT.

Buck

I thought I heard that one of the Success Webinars will be a Futures topic. That may help gather some interest. 

[RTrader 20]

Nice to hear other people are trading futures. I really don't understand why anyone would day trade stocks anymore. Futures have been the professional trading vehicle for years and only getting bigger. I have been trading them since 2012 and it was not an easy road to become consistent (took me over 5 years). I trade the Nasdaq, Russell 2k and sometimes the ES when it gets really active. In the current environment, probably the best advantage to futures is that I can hit the bid all day with any size I want. So no short selling restrictions is huge when the markets get volatile. There are great opportunities all day as well, unlike stocks where you really have to rely on the open to make decent trades.

One thing to note on commissions, they are not really the issue in futures. It is the exchange and clearing fees that get you. So the best and lowest cost broker is AMP. NT is OK as well, I'm just not a fan of their platform they make you use. AMP has lots of great platforms to choose from and a web trader (NT doesn't have that or any mobile option).

In futures, experience is everything. Learn to read order flow and price action. Eventually you won't even need a chart. Just watch the DOM. 

 

Jason

[Matt Callaway 5]

I've been getting into it (MES), I'd be interested in a futures learning session. 

Edited May 2, 2020 by Matt Callaway

[Stephen Hunter 7]

I am new here and am in the simulator learning to trade stocks, but I would be interested in learning to trade E-mini Futures. For the same reasons that you all stated above plus I have a full time job and trading Futures would allow me to trade after work.

@RTrader since there is no classes or information here in BBT, could you suggest some avenues I could go down to learn trading Futures so I do not go down the rabbit hole? 

[RTrader 20]

Hi Stephen, 

I would probably say you should check out TradePro Academy. I don't actually have a membership with them, or ever learned from them. I've traded futures since 2012 or so, before they were around. But their content on YouTube and courses and information is really good. They are actually trading real money and have approaches to the market that work. Some of their traders trade CL, (oil) which I do not do so I can't speak to that market.

The biggest problem most people have in futures is the leverage; it was my issue too for a long time. Since you can start with very little money, doesn't mean you should. In futures the reality is you need more (150K+ for e-minis) and divide it by 10 for micros. If you don't have enough, you might be OK for a while, but when the algos and volatility kicks in you will get cleaned out real quick. I actually trade the micros now, because they have so much volume. A lot of the NQ volume has moved to the MNQ. Even with the micros, you can push around so good lot size.

 

Jason

[Stephen Hunter 7]

@RTrader thanks a lot, I will look into them. I have two books on the way and I have been cramming YouTube videos. I have seen some of TradePro videos on YT, so again thanks.

[Richie N 4]

How's the learning curve going Stephen?  Have you listened to the Chat with Traders episode 148 - Trading the Order Book with John Grady?  Worth a listen if you're interested in Futures.  John's website and trading platform of choice (Jigsaw) also look great.   Like you, I am also considering Futures.  

 

Richie

[Stephen Hunter 7]

@Richie Thanks for asking and the info. I moved away from Futures once I learned more about Forex. I cannot trade Equities, because of full time job so I went with learning Futures. I opened an account with a Broker and started sim trading for a few weeks, then learned about Forex. I have since read numerous books and done online training on Forex and really love it. So I totally made the change from Learning and Sim Futures to Live Trading with Forex.

I backtested a few strategies and found two that work for me and now it is all about sticking to my plan. I definitely stick to a 2% Risk plan, but I have found NOT sitting on my hands after I make my trades. So that is what I MUST do. If I did that in my previous trades, I would be up instead of down. The great thing is, I have been up more than down so I am only down $30 on a $1000 account.

Do you trade Futures?

[Richie N 4]

Nice to hear and good job finding a trading vehicle that works for you.  I am not trading Futures but am starting to educate myself on the topic.  It appears as though Futures has a lot of advantages and a lot of the Futures traders are trading off  the DOM as apposed to charts - I like the idea of that.    Sounds like I should also read up on Forex!  

[Rob C 826]

I am currently learning to trade futures at the Day Trading Academy (5 months so far). My feelings about it so far is neutral. I can't recommend or unrecommend it. The mentorship in the beginning is pretty good but drops off quickly. The classes are good and the recaps are excellent. But not sure if it was worth the steep price. I am aiming to be ready to trade live by EOY. 

[Stephen Hunter 7]

@Richie @Rob C I have read several books and taken some online courses (free and paid). I will list them below.

 

Free and has to be the BEST information for Forex out there: https://www.babypips.com/learn I am only 78 out of the 348 lessons completed, but I have read books as well as other courses. Still this is the best FREE information out there. It is done very well too.

Udemy Course I took that I completed in a few hours (https://www.udemy.com/course/the-complete-foundation-forex-trading-course/). I picked this up on sale for probably $19 or something like that. Money well spent! You could go from Noob to SIM Trading with this. You just want to find some good strategies/patterns that work best for you once you complete this.

Books Read

• 50 Pips A Day Forex Strategy

• The Black Book of Forex Trading: A Proven Method to Become a Profitable Forex Trader in Four Months and Reach Your Financial Freedom by Doing it (Forex Trading)

Books Currently Reading

• Trading: Technical Analysis Masterclass: Master the financial markets
• Price Action Breakdown: Exclusive Price Action Trading Approach to Financial Markets

 

[Rob C 826]

Thanks Hunter. Have you looked at the Forex book they recommend on the BBT site homepage by Zack Zarr? I was curious if it was worth a read.