When you are choosing your first day trading market, there are several factors that need to be taken into consideration. These include your initial trading deposit, your personality, your profit and loss potential, and your geographical location.
Your first market should be a futures market because they are the most suitable markets for day trading, but you can choose almost any type of futures market that you prefer (stock index, currency, commodity, or agricultural).
The following are the criteria that beginning day traders should look at when choosing a market, along with list of futures markets that meet these criteria.
- Trading Deposit and Margin
- Trading Personality and Style
- Profit and Loss Potential
- Geographical Location
The best markets for beginning day traders are futures markets that meet all of the following criteria :
- Low initial and maintenance margin
- Smooth and decisive movement
- Low tick value
- Accessible to traders in different locations
and having taken the above mentioned markets, and many other markets into consideration, the markets that best meet all of these criteria are the YM (the Dow Jones futures market) in the US, and the CAC40 (the CAC40 futures market) in Europe.