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Better market to trade?

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This is a common question asked by many new traders. In many occasions new traders will receive 3 different answers. Futures, stocks, and forex. I think the best way to start is to pick one market/stock/currency and study it. Get to know the financial instrument you are trading fairly well before you risk any money. My personal favorite are the e-mini futures. The futures markets give me good leverage. But the most important thing is that I have pretty much specialized in it. Do what you do best instead of poking your nose where it doesnt belong.

 

If you are interested in trading stocks, I would recommend beginning with NYSE stocks. For futures, I would recommend the dow mini's. Hard to say about the Forex since I don't trade it. Any recommendations on the Forex markets?

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I was just browsing through some other forums and trading rooms and was quite surpised to see the lack of interest in the dow mini's. I specialize in the dow mini's strictly. And in my opnion they are probably the best place market for a new trader. The spread is $5 compared to $12.50 for the S&P emini's. Also the dow has some nice intraday moves, sometimes as much as 200 points. 200 points is equivalent to $1000 per contract. Of course you will most likely not catch the entire move but the dow mini is less prone to false breakouts compared to the S&P. I can not trade the S&P using a 1 point stop but can trade the dow using a 10 point stop. 1 point on the S&P is approx 10 points on the dow.

 

From my understanding alot of new traders will start with Forex. Perhaps because it is the most popular market. But one thing I recommend is to forget about the sex appeal of high-tech stocks or volatile Nasdaq stocks. Stick to markets that you are comfortable with. Talking to a bunch of Forex traders today made me feel like I was 90 years old trading the dow. :confused: If you want to start with the dow, I'll be glad to help you out. :) We need more dow traders!!!

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