These days the markets are more volatile than ever. In 2006 the Dow Jones moved between 70-150 points per day. In 2008 this range has doubled, and the Dow Jones moves between 150 and 500 points per day. It is quite unusual to see a day when the prices do not move triple digits.

So it is no surprise that day trading the dow jones has become very popular. The most popular form of day trading the dow jones is using the e-mini Dow Futures (Symbol YM). This futures contract is worth $5 for every point that the Dow Jones moves. So if the Dow moves from 10,700 to 10,800 a day trader who established a long position would make $500.

Using this futures contract day trading the Dow Jones is quite simple: In the futures markets, there are no uptick rules and no restrictions regarding short selling. You can as easily sell the e-mini Dow as you can buy it.

Low commissions enable day traders to profitably apply a variety of trading strategies: Swing trading, position trading or even scalping is possible. And instead of trading multiple stocks, the day trader is trading the whole index and therefore diversifying his trading.

You can see the popularity of the e-mini Dow Jones when looking at the volume: In 2006 on average 100,000 contracts were traded, while in 2008 this number has doubled to 200,000. In September 2008 the average daily volume rose to 300,000 contracts per day.

Click here if you are looking for a simple trading strategy for day trading the Dow Jones and experience it for yourself. Discover the advantages of trading the Dow Jones index over trading stocks. It might help to improve your trading results.