,A trader asked me to explain why we were recommending Russell trades now instead of NASDAQ. While we believe as most of our traders, that the most potential lies in NQ for the next few month, little matters if you cannot hold on to your position.
I have attempted to show the price action of the RTY vs the NQ since the September low. Each of those big wiggles in the NQ can knock you out of a profitable trade. Notice how much smoother the RTY is. The RTY would be the easier position to hold on to.
The other advantage is that the margin required for a RTY is $7,150 vs $17,600 for the NQ. Also, since last years sell off, the RTY has considerably out performed the NASDAQ.
It has become clear to me that most of the traders I work with should stick with the Russell from here on out because I do not see this volatility getting any better in the NASDAQ.
The Speculation page is used for educational purposes and to talk about our opinion on trades and what is going on in the market. All trade recommendations are made in "The Pit". This is also a blog page where you can ask questions, post your thoughts, or ask for help. Be sure to use an anonymous name. If you have any questions feel free to reach out to us via email.