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Day trading grain futures 2016/02/02 4:56 PM GMT Tweet

In July last year there an era in trading came to an end - the open outcry grain futures pits were closed for good. No matter of this fact the grain futures remain one of the least markets untouched by algo-trading and dark pools; although all trades are executed electronically, the machines have not entered that market as of yet as it happened with equities and indices and this is the last market good for day trading. I believe exactly because of that trading grains appeals to me that much.

What I like about day-trading grain futures is that while there is enough volumes and volatility to make significant profits during the day, (It is very similar to the ES-minis. In grains one quarter point of a cent move equals to $12.50 gain/loss.) on the other hand, the grain markets are not that noisy as indices and they tend to trend much more often; if a trend is established intraday, it continues; it is easier to identify and trade breakouts of support/resistance lines.

The other appealing feature of grain futures markets would be the trading hours. It has very distinct trading hours which is not observed in indices nowadays which with extended hours could be traded 24/5. I found for myself that I prefer to have fixed trading hours. The grain futures trading begins at 8:30 a.m. and the market closes at 1:15 p.m. CDT at Chicago Board of Trade.

Jumping from the ES-minis to grains as in my case at first could leave wrong impression of a slower market but after giving it a try, I found in that slower pace the charm of it. With that less noise and unnecessary hectic moves comes less stress and pressure. It frees the mind from constant monitoring the market and gives the ability to make the right set-up and follow all the way from entry to exit.

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