Skip to main content
Home
My Account
Contact
Cart
Logout
email usour twitterour facebook page youtubeinstagram

*Our most recent blog featured here.   *Email us your blog idea to fnlblogs@gmail.com

Sunday, June 07 2020
Can trading the MES prepare you psychologically for bigger things?

While talking with a couple of fellow futures traders Friday, we started talking about our journeys and testimonies to becoming better at this crazy thing called trading!

Invariably, the Psychology of trading came up in conversation with little resistance!  Heck, let’s face it, there are thousands of books written

on using psychological techniques to improve almost everything that we do as humans.

There are “Trading” Psychologists that get paid handsomely for helping traders improve just a couple of percentage points!

Interestingly, when you combine something that is a learned skill, that has a

decent component of “art” to it, and the outcome/success has currency attached ... you get a recipe for psychological chaos!!!

Our conversation continues, and I begin showing some “dollar cost averaging” techniques with the trend, and what we each consider the minimum

number of practice/paper/simulated trades that should be taken before trying [said] trade with live money.  The consensus was that 250-500 trades

would be sufficient (assuming that you have already been trading live successfully!) Immediately we discuss what is success as a trader?  One of the

other traders discusses how many friends and other traders that they’ve known that cannot conquer the apparent canyon from LIVE simulated success to LIVE “real currency”

success!  [albeit there are the noble few that bridge that canyon as though it’s a minor speed bump]

 

The above preamble is to set up what ended up being a great discussion about the pros and cons of the

Micro ES at $5 per trading point vs the ES at $50 per trading point.

One of us had hardly considered the MES, and I know that when I was first starting to trade futures the MES wasn’t even available to trade!

I brought up that the ES was originally created because the original SP trades at $250 per point which seemed unanimously too expensive for almost everyone as a place to start or learn to trade.  

If you are in any “sport” you have many levels of competition to help you progress along the way.  Golfers have club tournaments, then Golfing Pros

have mini-tours that have incremental steps of money and skill!  Tennis is the same!  Even Pickleball has age divisions, and skill level divisions at

the amateur and Pro levels. There are many endless examples of professions where you need incremental training as the stress & skill level increases.

So why not consider trading the MES?

 

From everything that I’ve read and been taught, the Psychology aspect of trading with real money

is anywhere from 30-90% of the business, then the MES at $5 per point could alleviate some of that psychological stress of losing and winning money!

(btw, kudos to the legacy of Mark Douglas and talking about trading in the “zone” where there aren’t highs and lows but consistent trades based on your track record)

The only “con” that I see is that the commissions per trade are typically higher on the MES (on a percentage basis), so it makes sense to be aware over the long term. 

Ninja Trader is currently at $0.82 per round turn with the lifetime license (I’m talking about all the fees and taxes included together in that round turn),

((so please let me know if you hear of other discount futures brokers that have lower fees!))

That would make an MES round turn 16.4% of the trade vs the ES at 7.7% of the round turn, so you can do the math and realize that the expense side

of the business plan will be higher initially when going LIVE, but in the long run you may have a stronger and more successful track record LIVE by taking

some time transitioning from LIVE simulated, to LIVE MES, to LIVE ES (and possibly reach my goal of LIVE SP some day!!!)

Let me know if this helps you on your journey to be a consistent, money-making futures trader!  Also, please let me know of any topics, as well as blog & vlog ideas

for me to discuss. 

Happy Trading! 

~Derek D’Amour

Post comment
Name
Email Address

Message
(max 750 characters)
Note: All comments are subject to approval. Your comment will not appear until it has been approved.

Site Updates:

04/09/21 

Blog post - Do I Treat Trading Like a Hobby or a Profession? - Lydean S.

04/05/21

FNL Crypto launched on YouTube Live!
 

04/03/21

Dallas Social confirmed for June 3-5 at Lewisville Lake!  Beautiful AirBNB house reserved on the Lake 

03/20/21

Futures Radio Show Host and Trader extrodinaire, Anthony Crudele, confirmed to be in FNL on April 12th 11am

03/15/2021 

FNL Crypto Launched!! Daily sessions 4-6pm ET in FNL with Chris L. Live YouTube Streaming coming! 

3/12/2021  

FNL on Social Media!! Check us out on Facebook, Twitter, Instagram, LinkedIN and YouTube

3/11/2021

Phoenix Social pics up.

New Member Spotlight!

2/11/2021

New pic of Gary's Canadian Lynx in Random Pics.

New Calendars started.

2/10/2021

Futures D'Amour YouTube links on Members Only page.

2/5/2021

New Member Spotlight.

New Trader Creator Videos.

2/3/2021

New Member Orientation video added in Resources.

2/2/2021

New TV.

2/1/2021

New Risk Management Profile/Parameters available in Member Resources.

1/28/2021

Tracking Sheet now available in Google Sheets in addition to an Excel File!

1/25/2021

New BulletProof TV.

1/21/2021

Simmillions Page updated.

1/20/2021

Candle Pattern images now "saveable" in Members Resouces.

1/18/2021

Trading Room Closed today for the holiday.

Tracking Sheet linked in both Member Resources and Member Only Page.

1/14/2021

SimMillions page updated!

1/13/2021

Tracking Sheet UPDATED V1.21

1/11/2021

David J's Blog page added to FNL Blog page!! 

1/10/2021

New TVS!

1/6/2021

New pics in "Random Member Pics"

1/6/2021

New logo hoodies added to "FNL GEAR"

1/5/2021

New blog post!

12/30/2020

Visitor Center updated

New procedure for logging into the Trading Room.

New photos in "Random Members" page Little D!!

12/21/2020

Raquetball video on Dec socials page!

New Random Member pics added.

12/15/2020

Nor Cal Dec 2020 pics up!

FIXED:  Blog comments now working!

12/10/2020

Competition WINNERS posted on Simmillions Page under "Leaderboard"

12/9/2020

New Blog

Trading View signals on home page.

12/2/2020

New Trader Creator video Trend Part 2

HA charts added to "Workspaces"

12/1/2020

New Trader Creator videos added.

11/30/2020

New style Calendar "Trading Room Schedule"

11/24/2020

Blog admins given access.

Socials Page started.

FNL Gear bottom of home page.

11/19/2020

Social Network links added to top of page.

11/18/2020

Workspace Page added to Member Resources.

11/13/2020

New tv designs

11/12/2020 

Blog post added on time/clock issues (comments enabled)

11/1/2020

New set of white chart backgrounds.