Boom! Looking to day trading futures or more specifically the ES? You came to the right place, this weeks blog is all about day trading the ES and why it might be the best future contract to day trade.
First off what is the ES? Well the ES is the futures symbol for the E-Mini S&P 500 futures contract. New to futures and need some more info? Check out one of our videos going over everything you need to know.
The ES, is a great option for day traders due to a few different reasons. Even on slow days there are normally a handful of different trades that can be taken, all while following your rules. This is great for day traders as they can obviously place a handful of trades each day and if they happen to have one or two losing trades they can possibly make up for them.
The old saying the trend is your friend is accurate when talking about day trading the ES. Since the ES trends nicely on lower time frames it allows day traders to place long and or short trades all in the same day. It is not common for the ES to trend up and trend down all in the same day.
By following a few trend following rules we have laid out in the Gorilla Futures course you'll be able to place trades no matter what direction price is moving.
Volume volume volume, cant trade with out it! Luckily there is a ton of it on the ES. With some days reaching 1.5 million contracts it is easy to get in and out of trades. Not to mention all that volume, can at times help the market move up/down a significant amount.
Not convinced yet to trade the ES? Try out the MES or Micro E-mini S&P 500, this is a much cheaper alternative for traders to use. It is a tenth of the size of the ES, meaning one tick is equal to $1.25 compared to the ES at $12.50.
The MES follows the ES and 99% of the time the two are exactly the same price. Making the MES great for traders looking to try out futures or possibly test out new trading systems.
Lastly the ES/MES follow all of our price action rules, making it a great candidate for traders who enjoy trading price action. Those of you who might be new to price action, it is simply how price moves from A to B on the chart. Traders are able to read this price action with little to no help from indicators all while placing trades in real time. Don't forget all indicators are lagging.
Hopefully by now you have a decent understand on what the ES is and all the benefits that make it one of the best futures contracts to day trade.
Comment down below on what you like to trade!