bondtrader's Blog

Futures Trading, Musings, and Random Thoughts

Tuesday, August 10, 2004

I'm Back!

It's been a month since I last blogged. In that time, I've been busy searching other markets to trade.

In the last month, I tried 2 markets: the mini-Dow futures (YM) which trades on the CBOT, and the e-mini Russell 2000 (ER2) which trades on CME. Both of these trend better and have more interest and volatility than the 30-year Treasury Bond futures (ZB). When these two markets move, they move indeed, and has allowed me to actually practice good trade management while I'm in a trade. What I mean by that is proper execution of my entry setups, and once I'm in the trade, I can proactively trail my stops as the market moves decisively and swiftly. This way, if there is a strong trend I can just ride the trend , and let the market stop me out at a profit. Doing it this way I let the market tell me when the move is over. Compare that to when I was trading the ZB, I had to put in my profit targets pre-emptively and could not really trail the market with my stops because it moved like a snail. During the months of May and June when I was trading ZB, most of the time I was tempted to take whatever profits I had because most of the time, it seemed ZB was going to stall because of how slow it moved.

The mini-Dow and the e-mini Russell 2000 (especially the latter) just fit my personality much better.

In the coming days I will be posting the trading results here.

Good trading to you all.