subject: Trading Strategies S&p 500 [print this page] Remember that this particular market, by nature, is a volatile and consistently moving industry. And so, you must be aware of the different trends as well as formulate a good and strong strategy to weather whatever obstacles may come.
In order to make a successful trade, you must take into account the technical as well as fundamental factors in order to make good and informed decisions. Make sure that you use your knowledge and skills in determining a strategic plan to go about your trades. Achieving success in this industry is not as easy as it may seem, but with a little hard work, you may just get great results.
The E-mini S&P is a popular sector of many future traders. The S&P emini trades more than 2 million contracts a day with an average daily trading range of 22 points in July. Futures traders using a strategy you outline in your trading program and read articles how hot to read charts and trade the emini. You need to know the E-mini can be somewhat fickle and the longer trend some times is not clear, so you need to make sure to have a tight stop in choppy markets.
Price flow is important along with adequate volume. You want to pick a market with adequate price movement to provide a wide enough range to make a profitable trade. You dont want so much volatility that emini jumps all over the place in an inconsistent, erratic pattern or channeling. There are various studies of historical and implied volatility, but to put this factor into dollars and cents, one way of looking at how much a market might move in a day is the average daily price range. A choppy market will eat up your trading account.
