Good afternoon - after the US close, oil futures seem to have very little volume for overnight trading. Am I correct? Are any futures with low volume better for the beginning futures trader or more of a discouragement? Thanks - Ken
We do not think that low volume is better for any trader. Volume is an indication of liquidity and the ease of getting in and out without much slippage. However, we think that you are referring to volatility where it could be less overwhelming for a beginner trader in terms of decision making. If you find the overnight session better for your trading, you are more than welcome to explore it. However, consider that as a day trader you could also wait for periods that are more suitable for you. As a day trader, you are more than welcome to skip those days that do not match your risk tolerance. These days may include big ranges on a short-term basis.
You can use ATR (Average True Range) to decide whether some days are appropriate for you or not. We hope this helps.
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Excellent insight, thanks Matt.