I am glad you asked.
MES gives you a FINER, MORE DETAILED control over your RISK and PROFIT **THUS** finer control over your EMOTIONS.
I can not express to you how important EMOTIONAL CONTROL is to the success of your trading.
The #1 reason you should trade MES, is the EMOTIONAL control you get.
Firstly, there ARE portfolio sizes that can handle MULTIPLE ES contracts at once BUT can you EMOTIONS handle it?
If you can’t trade MULTIPLE ES contracts, you need to be trading MULTIPLE MES contracts.
You want to trade a size that will not move your emotions TOO far. If you are trader, you know what I mean. When you get emotional, you make mistakes because you can’t think! Then you get really angry, tilt, and make really really back decisions.
You see, it IS possible to blow up an account in ONE trade… even ONE candle. I HAVE seem a 100 point 3 minute candle. Crazy things DO happen.
I would rather see you have string of base hits with MES… and then you get that 20+ point runner.. and you have a monster day with SMALL RISK.
Let do an example:
Trader 1: Enters a trade with 1 ES. Price moves 2 quick points and you get out for $100 profit ($50 per point X 2 points.). Nice Trade.
Trader 2: Enters with HALF the risk with 5 contracts. Price moves a quick 2 points. This trader takes 2 contracts off. (2 contracts. 2 points. $5 a point. = $20 profit). He keeps three contracts in the trade. Price them moves 10 points into the profit. He takes off 2 more contracts. (2 contracts. 10 points. $5 a point = $100). The final contract runs 10 more points. (1 contract. 10 points. $5 a point = $50).
Trader 2 has much less RISK, made way more money, had more options (peeling off contracts), stayed in the trade longer, …. AND could have EASILY added to their position!