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MEES can become a big product very quickly in your account if you have a directional bias
Using MEES can help manage the margin requirements when trading futures.
The speaker advocates for starting with micro futures like MEES and MNQ due to their liquidity and lower capital requirements. Scalping these contracts allows traders to practice without significant risk, focusing on quick profits from small price movements. The strategy emphasizes discipline and staying with the trade until comfortable, avoiding the temptation to overtrade or prove a concept too quickly.
Scalping futures requires understanding the expected move and setting profit targets between 20-40% of that move. The risk should be managed by setting a stop loss at 2x the expected profit. This approach helps in capturing small price movements efficiently while managing risk effectively.
The speaker advises against hedging or spreading off a losing scalp trade. Instead, a scalp trade should be treated as a standalone position, and one should either take profit or accept the loss without attempting to hedge or spread off the losing scalp. This approach prevents confusion and potential worsening of the situation. The speaker also mentions that MEES is a liquid micro future with a $125 per tick and $5 a point, and a decent scalping range is 20 to 40% of the expected one-day move.
No, you cannot buy a forward-dated MEES future. Instead, you can roll the futures contract quarterly (March, June, September, December) to maintain exposure. Rolling is a simple process that takes just a few seconds and is more efficient than holding a leveraged ETF.
The speaker recommends starting with micro futures contracts like MEES and MNQ due to their liquidity and lower capital requirements. They emphasize starting small, using one contract, and staying with it until comfortable. The speaker also highlights the importance of understanding tick and handle sizes for these contracts.
The expected move for MEES is approximately 50 handles or $250.