Why Trade the S&P500 E-mini?


When deciphering which financial instrument
to day trade, it’s important to become a specialist in one area to maximize your ROI. In this
video, Dr. Vance Cast explains the benefits of trading the S and P 500 E-mini. Specialization in the marketplace is a good
thing, and we specialize in one product and one product only, and thats the S and P 500
E-mini Futures. Now, the S and P has been around for years just like the DOW Jones has,
and the product that we trade is based upon the S and P 500, though we don’t trade the
S and P 500 itself. Sometimes people watch our trading chart and they notice that the
price on our charts are not the same as what they’re watching on TV with the S and P 500.
That’s because we indeed do not trade the S and P 500 itself, we trade a futures contract
based on the S and P 500. Now, the E-mini itself has three fundamental qualities that
you want in any financial instrument that you trade. Number one, it has to have the
liquidity. Liquidity means that you could sell out of your position much easier. If
there’s no liquidity, you might get stuck into a trade that you don’t want because there’s
no market to buy or sell your product when you want to buy or sell out of your position.
Number two, the product must have volume and volatility. Volume further speaks to the liquidity
and the price support component because the more volume being traded, the more trader
support the product has in the market. Volatility, suggests that the price has movement. So think
about it, if the investment is not moving in price throughout the day, you won’t be
very good at making money as a day trader if you’re actually using something where the
price doesnt have any volatility. Number three, the product should be easy to understand.
Now many people start off trading like the Forex. But our philosophy is that things like
the Forex have too high of a learning curve for beginners because there’s just too many
things to decide on. You have to decide whether you’re going to trade the Euro, or the Australian
dollar, or the Yen. And with the S and P 500, you know what your going to trade and your
trading the same thing everyday, become an expert at it, and become highly profitable
at it. So again, the S and P 500 has the three things we really want in a good product, which
is liquidity, volume and volatility, and making sure that it’s easy to understand. We hope you enjoyed this video that was an
excerpt directly out of our Academy. To find out if you qualify to join as a member, call
888-646-8787, or go to DeltaTradingGroup.com

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