Do you ever wonder if it’s possible to make money day trading micro futures? Today, I’m going to share some information with you that will hopefully give you a definitive answer.
First of all, do you know why micro futures are an excellent option for retail traders with account sizes of less than $10,000?
The first reason is due to the low margin requirements that brokers charge for trading the E-mini micro futures contracts. The MES futures contract represents the S&P 500 Index that can be day traded for as low as $50 intraday margin.
Are you wondering why the MES margins are much cheaper than the ES futures contract that tracks the same index? Simple, the MES contract is 1/10th the value of the ES E-mini contract. The same intraday margin on the ES futures contract would cost traders $500 of margin to place the trade.
The second reason that micro futures are an excellent option for traders with a small account size is the tick cost. Each tick in the MES is worth $1.25 per contract, which means if you are down on the trade by one tick, that will amount to -$1.25 loss, and if you are up by one tick, that would equal $1.25 of profit for you.
Are you still asking yourself if there is enough potential each day to earn real money day trading the micro futures contract? The answer is yes!
The average trading range from high to low is over 50 points each day. A 50 point move has a dollar value of $250 per contract. Due to the Coronavirus, there are now many days where the daily range expands well over 100 points.
Although these are several reasons to get excited, and I mentioned them to show you the daily potential in the market, please don’t assume that you will get a 50 point move every single day in the market.
In the video below, I will share with you examples of the daily potential in the market. However, please don’t confuse potential with actual daily gains.
In closing, I would like to once again remind everyone about the FREE live streams hosted by myself each week. These live streams are an excellent opportunity for traders of all skill levels to ask questions and interact with me live. Again, this experience is entirely FREE to you. So if you haven’t already signed up, why are you waiting? Please fill out the form below to be notified before any of my future live streams.