Top Strategies for Trading the E-mini Russell 2000 Index Futures
The E-mini Russell 2000 has become an extremely traded futures contract, bringing small-cap stocks into the light; these stocks make up the Russell 2000 index. Most traders target this instrument as part of a diversification effort to exploit strong movements in the small-cap sector. With every investment comes the need for a sound strategy. Here, we discuss the top strategies for trading the E-mini Russell 2000 index futures, combining both technical analysis and market behavior in identifying potential profitable trades. 1. Be Aware of Market Sentiment and Trends Understanding that one of the keys to E-mini Russell 2000 successful trading lies in an understanding of market sentiment, small-cap stocks indeed react very sharply to economic changes, thus updating about the current trend as well as the trends in broader conditions is crucial. 2. Use Technical Analysis Among these are the moving averages, Bollinger Bands, and Relative Strength Index (RSI). The latter will give yo...