Sunday, March 20, 2016

Can Tick Value Affect Your Trades?


Most traders get so involved in the act of trading they give very little thought to what they will be trading. They do they know that the instrument they choose to trade can have a big impact on their overall success. Choose a bad market and you ll find yourself under-capitalized, taking more significant losses, and losing out on a nice profit. So how does the average trader pick a market to trade? Usually, there s very little (if any) thought involved. They often gravitate to whatever market is “sexy” at the moment. This method usually translates into a very fast, very volatile market such as Gold or Crude, to which the average trader may not be suited to trade. Another popular way of picking a market is to go for a high tick value. This approach explains why the emini S&P is “King of the Hill” of the mini-index markets. At $12.50/tick, profits add up quickly – it’s almost too good to not trade – of course, people never seem to consider the reverse of the equation and
https://www.indicatorwarehouse.com/trading-tick-value/

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