E Mini S&p Index Trading ? Perfect Tool for Full-time Day Traders

After doing a lot of research about which contract allows the most flexibility in trading, I have decided to focus my efforts on one single futures contract: The e-mini S&P 500 Futures Contract:

Here is why:

· The e mini S&P futures contract tracks the common cash index of the S&P 500.

So instead on focusing on specific stocks, which there are way too many, I like trading the overall direction of the market.

· The liquidity is sufficient enough for the small and the large trader, and one  could easily trade in and out in seconds.

· No shorting restrictions, and there are no “borrowing fees” associated with shorting the contract.

· Margins are a fraction compared to stocks, especially when you consider the entire value of the contract. So essentially, you don’t need a fortune to trade the markets.

However, my favorite feature is the ability to trade the E-minis without the same old traditional indicators.  You can trade the contract utilizing price action.

Let me explain:  I have found that because of the liquidity, the rapidness of the market, and the support and resistance that is formed throughout the day, I don’t have to clutter my charts with the old indicators that many stock traders use.

The size of the contract is as follows: X the level of the Index, so one full point is equivalent to , while the tick value is .5 (4 ticks per one full point).

This is obviously done on one contract. 

The ranges on the E-minis could be rather high throughout the day, which allows some traders to take out many points out of the markets; however my own method allows me to just take 2 to 4 points on a daily basis.

Consider that I could so do this on 5 to 10 contracts.

The method of “Price Action” and the ability to pick a small number of points, in my personal opinion, are rather the way to go, instead of waiting for larger moves. Consistent small moves that lock in profits, is something that many traders should utilize because it will allow for account growth and hopefully avoid the huge high volatility in the account equity.

Another thing to consider is that traders that go for large and extend moves typically have a much higher risk when it comes to the ratio of risk/reward.

Lastly, the advent of the internet and online software for traders allowed me to automate my methodology, so my numbers of the buy and sell, appear in front of me daily without my effort. Naturally, due to the morning volatility in the market, I am typically done by lunch time. Please take a look at my video: http://www.daytradetowin.com/videos.php