Emini Education Reality Check - Scared Money Never Wins

Short term trading is a business - a very serious business that requires skill and discipline. Everyday, people trade the Emini index futures markets without these two very important elements so necessary for success.

Having no goals or objectives, rarely having a trading system in place, they throw money into the markets hoping “today” will be different. Unfortunately, today could be different and the fledgling trader could finish the day having executed one or two winning trades.

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Sadly, this same trader will give it all back tomorrow until eventually his trading account has been decimated for no other reason than lack of skill and discipline.

The futures markets are tempting. There is big money to be made for sure - but only for those who have taken the time to develop the skills necessary to trade well.

Experienced traders know profits are the result of trading well. They don’t focus on profits, they focus on trading well and follow the rules of their trading system without exception, never wavering.

They don’t let hope, fear and greed influence their trading decisions. They understand the dynamics of they market and have developed a system which eliminates the emotional element that plagues inexperienced players.

Protect Your Capital

Protecting trading capital or money management is what separates successful traders from unsuccessful losing traders who don’t last very long. Although, as traders we must all start somewhere, and almost all of us will start out losing. In fact, losing is part of trading. No trader wins with each and every trade.

However, the experienced trader does excel in preservation of capital and does not abuse it by executing trades on a guess or a gut feeling. He knows his capital is too precious to be wasted on careless, undisciplined trades.

They don’t chase the market, they don’t over-trade their account and execute trades just to be in the market, they don’t ignore their stop and hold a losing position “hoping” the market will turn in their favor. Sure, you’ve heard all of this before but if you’re reading this, odds are you haven’t heeded these important rules of the game.

Success will only come once the trader understands he must protect his capital as all cost and stop focusing on making a profit and learn to trade well by exercising discipline.

Scared Money Never Wins

Two types of people trade with scared money. The first are the ill-prepared and inexperienced players who are under-capitalized trading with money they cannot afford to lose. Usually these people are on an emotional roller coaster and depending on how much money they initially opened their account with, will determine how long before they crash and burn.

Some days are winners, more are losers because of desperation. Hope and fear rule these pitiful market participants. We won’t call them traders because they’re not.

They are gamblers hoping a miracle will happen and they will somehow survive long enough to miraculously turn into a successful index futures trader.

Unfortunately, they won’t ever become successful with most eventually blowing out their trading account and walking away in frustration. However, a few will learn from the disaster and eventually develop the skill and discipline necessary to be successful through a trading education.

The other type of scared money players are those that cannot accept losses. Unfortunately these types seldom develop into long term futures traders.

Losses are a part of being a successful futures trader or any type of trader for that matter. They need a guarantee that no losses will be sustained and will lose untold hours of sleep mulling over one or two broken trades. If you can’t handle losses, the index future market is best left alone.

Make no mistake, if you are considering trading eminis you will be unsuccessful and throw good money into the market with nothing to show for it other than an empty brokerage account. However, by gaining an education that will develop skill and discipline in conjunction with a proven trading system, you can successfully trade index futures and become one of the select few who win at the game.


You put your thoughts very well. There is the risk element in every trading.

Excellent article. Traders feel more confident when they started to do short-term trading. http://www.stockbuzzindia.com

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