Trading Overnight E-mini as Opposed To Regular Hour E-mini Trading

By: Chris on 2013-06-29

Futures Trading Tips


A trader will find themselves making decision on a daily basis based on trading opportunities. Some may have developed a niche trading strategy that offers few attempts during the day while others have multiple strategies allowing for many daily set ups. What happens when weíve not established enough trade opportunities during the day and find ourselves unsatisfied? Generally, a common next move would be to give the overnight session a look to see if you can find an opportunity. This is common because it is simply available and with the lack of success during the day it is tempting. I have no issue with trading either of these sessions, but I do approach it in a certain matter.

What to Watch Out For When Trading E-Minis overnight

Most traders are well informed about the structure about each instrument. If not take a look at NASDAQ. At the very least we should all be aware that the majority of futures if not all are traded overnight. These instruments of course carry varying amounts of volume making some more attractive than others. I bring this up as its an important concept when we start to deal with the overnight sessions. Volume is of utmost importance to avoid some common trading traps such as the low liquidity trade.

On top of determining the most liquid opportunities we must be aware of how are mental and physical state is affected by the stress of around the clock trade. A trader no matter how unaffected they believe they are, face inconsistency. This inconsistency comes from lack of energy and can in turn cause you to do thing you may not have meant to do with trade orders and the like. A trader must have a clear and well rested mind as they approach analysis. Technical analysis can quickly become skewed if youíve been up for an entire day. This can lead to simple poor decisions or even trying to trade around an extended overnight session. You may feel the urge to ďget a trade onĒ before a certain time so that you can go to bed at something of a decent hour.

So Is It The Right Decision to Trade Overnight or Stick to Regular Trading?

I say that there is a distinct advantage of trading both the overnight session and the day session though not as one. When you try to trade both we know now that judgment can become cloudy and decision making becomes less on point. We also know that what happened a few hours ago generally will play a role in what you may do coming up. It always feels better to simply start off with a fresh ď0Ē in the profit and loss column. You donít want to have the hangover affect take over your morning session.

Giving RTH VS ONS The Final Breakdown

Generally speaking I find a lot of value in trading the overnight session at certain times of the year when more action simply occurs at these time spans. Maybe some overhanging European news or Asian news will keep me up at night. I try to have a reason for the overnight session and though Iím not concerned what the news itself is I am concerned with price movement. Iím not too quick with making the decision on overnight session as this generally means Iíll be sitting out the day session to rest up.

I have to be sure an advantage is present and also be sure itís not about to end and snap back to normal. I donít really want to waste a night and beauty sleep only to find out the afternoon session decides to die down. Just remember that trying to be superman and trading both sessions is generally not a good idea in my opinion. It leads to unanticipated and undesired trading habits. I simply stay away unless I have a good reason and Iím past the stage in my life where I need the lack of sleep to tell me Iím no superman.


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It is our hope that you are truly able to gain some value from this approach to trading education. To best take advantage of this site it is important to truly understand concepts and not fall into the trap as most traders. This trap being moving on from strategy to strategy before you master it. Don't become a aware of many things and a master of none!

stock exchange building If you have any questions please feel free to contact me at chris@stocksandstocks.com.




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