Emini Trading Tips - Three That Are Important

Although many are drawn to the financial markets because they can be lucrative, most will leave in failure. Why?

Lack of discipline. In this blog post, we will cover three very important emini trading tips that can increase your chances of becoming a successful futures trader.

Check The Daily Emini Trading Room Results

Mini futures day trading offers something other forms of trading does not…short term profits, everyday!

The level of risk involved with index futures trading is substantially high but new traders can learn to become successful.

Most new participants (we will call them participants because they aren’t traders) will fail miserably because they are more focused on gambling rather than trading with purpose.

Getting It Right In The Beginning

Profits, to them, are more important than learning a skill and increasing knowledge. They, in effect, have the process backwards. Profits are only a result of gaining the skill to trade first.

Many increase the number of contracts they are trading from one to two or more before they are ready which results in larger losses and eventually blowing out their trading account.

Trading with one contract until such time the necessary skill level is gained and accounts levels justify increasing the number of contracts, should always be the rule.

This is one area where discipline is necessary.

It’s easy for a new trader to throw caution to the wind after a successful trade rationalizing, “I could have made more had I only traded with more contracts“.

Don’t do it!!!

Tip number one is; never ever increase the number of contracts until you are ready and your trading account capital can tolerate failed trade draw downs.

Always know the prevailing trend for the day.

Countertrend methodologies are the domain of experienced traders whom have the trading account balances to withstand the loss should the countertrend method go bad.

In trading, the trend is your friend!

Every level of trading throughout the daily session is effected by the underlying trend.

If you trade with the prevailing trend when trading, your odds of success are greater.

Always know what the current trend is by checking higher time frames before the opening bell.

Look at the hourly, daily, weekly and even the monthly time frames.

This information may seem unimportant to you as a  day trader since the goal is short term profits.

Nothing could be further from the truth. So index futures trading tip number two is to always trade with the prevailing trend.

Trading tip number three is another area where new participants fail miserably:

Obeying stop losses is also where a new trader often lets the gambling mentality takeover, leading to disaster.

Stops are there for a reason, to stop the trader from taking a larger than anticipated loss.

Where the new participant fails is he lets emotion take over when a trade goes against them, hoping the market will return to their entry point or higher.

In some cases this does happen but the novice failed to trade and only gambled.

Do this over and over and you will soon find yourself with a empty trading account.

Stops are there to be obeyed and not disregarded - EVER!

Trading is difficult enough without a proper trading system in place.

Why would anyone approach the index futures market without a proper trading plan in place?

Because they are more focused on profits rather than learning to trade well.

Follow these trading tips and you could be well on your way to being a successful  futures trader.

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