Emini Futures Trading

Mini Dow and ES Emini Make Gains After Four Day Slide

2012-02-01T15:40:00.007-06:00

Manufacturing Index Report and Greece Factor in Gain
The ES e-mini futures gained the pivot point, (1309.25), early in overnight trading establishing the trend for the day. Moving up steadily into the pre-market session before the opening bell of the cash market, bringing an end to the four day slide in the financial markets.The bell this morning saw the ES open cash market at 1318.50, two points above the R1 level,(1316.50), with the first half hour gaining the mid-point resistance level at (1320.50). During the lunch hour and early afternoon, the ES futures eased up toward the R2 level,(1324.50) broke through and printed the high for the day at 1,327 before pulling back and closing the day at 1320.75.

The YM Dow e-mini contract captured and crossed the YM pivot point, (12590), early in overnight trading establishing the trend for the day just like the ES contract. The YM spent the remainder of early morning trading and the pre-market trading sideways along the R1 level, (12670), going into the opening bell of the cash market. The Mini Dow opened the cash market at 12681 and printed the high for the day at 12735 within first hour trading. The YM traded along the mid-point level, (12716) through lunch and int early afternoon before beginning a pull back into the close as trader took profits closing positions. The YM closed the day at 12664. The index of US manufacturing rose in January and news that Greece may be reaching a deal with private creditors had an impact on the market today.

Always check the Economic Calendar before beginning the trading day.

S&P E-mini Futures Slide Back Through Pivot Point

2012-01-31T17:18:00.007-06:00

Dow E-mini Futures Mirror ES Futures
ES S&P emini futures trading overnight saw the market trending up through the pre-market and into the opening bell of the cash market, topping out at the R1 level (1317), printing the high for the day at 1317.50. Once the market opened however, the bottom fell out with the ES spiraling downward back through the S&P pivot point, (1306.50), eventually finding support before the lunch hour in the area of mid-point support level 1, 1302.50. The ES spent the remainder of the day trading back and forth over the pivot point before closing the cash session at 1308.25 just above the pivot then drifting down to the pivot point in the aftermarket.

YM Dow emini futures trading tracked closely with the ES as the YM moved up toward the R1 Level during overnight and pre-market trading only to see the gains made overnight erased once the cash market opened as can be seen on the Dow emini analysis below. The e-mini Dow kept the downward pressure on the entire morning trading session and eventually found support at mid-point support level 1 (12539) below the pivot point (12572). Once the bottom was in, the YM futures slowly traded back to the pivot point and closed the cash market session at the pivot. The Dow Jones cash market saw stocks fall for the fourth straight day, the longest losing streak since last August as consumer confidence lagged economist's projections and business activity has slowed.

Check the Economic Calendar for Wednesday as several reports due out tomorrow may have an impact on the market.

ES Emini & Dow Emini Find Support and Rally

2012-01-30T16:23:00.010-06:00

Greece Talks Still Weighing on Market
The YM Dow emini futures traded below the pivot point, (12637), early after the opening of the overnight session taking the pivot entirely out of the equation today. The YM spent the pre-market and the cash market sessions trading below support level 1 (12553) and above support level 2 (12493) which can be seen on the YMH12 intra-day chart below. These two levels marked the boundaries for the YM until after the mid-day lunch hour which saw the YM build enough steam to break back above support level 1 before closing the day at midpoint support level 1, (12595).

The ES S&P emini futures lost the pivot point,(1313.00), overnight following along with the YM futures setting the downward trend early. During pre-market trading the ES broke through and below support level 2 before reversing course and opening the cash market right at support level 2,(1300.75). Once the ES gained this level the futures moved up for the rest of the session, taking a sideways break through mid-day. With the opening of afternoon trading, the ES regained support level 1,(1306.50) before closing the day just below mid-point level one at 1308.75. The early losses are the result of stalled talks over the debt situation in Greece but investors appeared to have shrugged the situation off and rallied going into the close.

As always, be aware of Economic Reports and their release times since they can have an impact on the markets. Economic Calendar.

Mini Dow and ES Futures Range Bound With Late Day Surge

2012-01-27T16:56:00.006-06:00

Late Day Rally Lessens Losses

The YM Emini Futures moved up toward the pivot point overnight, (12703) but things quickly changed for the YM futures once pre-market traders showed up, pushing the YMH12 contract down to Support 1. The cash market session opened at 12621, one point above S1 with morning trading pushing the YM down further still before finding the bottom for the day at the 2nd mid-point support level, (12588). The YM stayed in a tight range for most of the cash market session with a brief surge above S1 before pulling back and closing slightly below the level. The YM intra-day chart below shows the tight range between S1 and the second mid-point support level.

ES S&P Futures Trading 1/27/12

The ES Emini Futures traded in a tight range today making the only significant move going into the last hour of trading. The ES futures moved up overnight and briefly traded above the pivot point, (1318) before pre-market trading saw the ES quickly slide down to S1, (1306.50), before the cash market opening bell. The rest of the trading session the ES was range-bound between S1 and mid-point support level 1 until the last 90 minutes of trading before the close. The contract broke back above mid-point support 1 (1312.25), making a run toward the pivot but rapidly lost steam and closed the session just above the Mid-point support level as can be seen on the ES intra-day chart below.

There are several important economic reports out next week. Make sure and check the Economic Calendar.

Emini Futures Close Down on Economic Reports

2012-01-26T17:02:00.006-06:00

ES Emini Loses Pivot - YM Emini Closes Above

Overnight futures traders may have been overly optimistic, anticipating a continuation of the upward move spurred on by the FOMC announcement Wednesday. Once the cash markets opened however, the optimism quickly turned to pessimism as can be seen on the ES emini futures intra-day chart. Trending upward in overnight trading after briefly visiting the ES pivot point (1316), the futures moved up through pre-market trading to a 1327 cash market open, followed through with a brief visit to Resistance Level 1 before turning south for the remainder of cash market trading. Once the downward move was in place, the ES paused for 30 minutes at the pivot point during the early afternoon before sinking almost to Support Level 1 as can be seen on the chart. Putting in a late day buying surge before the closing bell, ES longs attempted to re-take the pivot to no avail.

YM Dow Emini Trading 1/26/12

The YM Dow emini futures contract opened the cash market session at 12759, well above the pivot point (12645), and quickly pushed through the Resistance 1 Level (12768). Opening above the pivot point in the area of resistance one, was a signal to YM futures traders the overnight upward move was possibly losing steam. The confirmation was in less than an hour into cash market trading when the Dow mini futures broke back below the R1 level. The YM downward slide found some minor support during mid-day at the 1st mid-point resistance level (12707) before resuming the slide lower. Late day trading found support for the YM back at the pivot resulting in a slight bounce before the closing bell shown on the YM intra-day chart below.

Market Summary

The FOMC announcement yesterday was responsible for the late day rally which saw the YM and ES futures pass several levels of resistance. Today however, saw investors and traders reacting to several economic reports as well as mixed earnings reports. The financial issues involving Greece and the EU are still looming in the background which is having an impact on the market as well. New claims for unemployment rose and new single family home sales were down for the first time since August and AT&T posted a significant loss which combined with all the other economic data, resulted in the charts above.

Economic Reports for Friday 1/27/12

Emini Futures React To FOMC Announcement

2012-01-25T18:42:00.006-06:00

ES & YM Futures Blow Through Resistance

The ES Emini Futures had a downward bias during the early morning hours eventually finding support at the first mid-point level of support (1306.50) during pre-market trading. However, the ES took a sharp dive right at the opening to the S1 level before rebounding and turning to the upside, setting the trend for cash market trading. Easing up toward the pivot point (1308.50) during morning trading, the ES gained the pivot for good during the New Your lunch and spent the next 90 minutes or so blowing through 4 resistance levels all the way to the RS level 1318.50. The ES then revisited R1 before turning and moving through one more level of resistance at 1323.75 before pulling slightly back to close the cash market session. The FOMC announcement had a positive effect on the market as can be seen on the ES intra-day chart below

YM Mini Dow Futures Trading 1/25/12

The YM Mini Dow futures tracked along with the ES during overnight trading, sliding downward as the early morning hours moved toward premarket trading, which saw the YM find support at the S1 level (12574). The Ym then nosedived going into the cash market opening bell finding support at s2 (12521) then reversed direction to the upside. This move set the trend for the rest of the day with the YM gaining the pivot point (12613) around mid-day and breaking through 3 levels of resistance and making an attempt on a fourth. Although the YM could not sustain the move through the R2 level (12705), the YM futures closed just beneath it as can be seen on the YM intra-day chart.

As evidence today supports, economic reports can have a big impact on the markets and every trader should know which reports are scheduled before the market day begins. Tomorrow's economic reports can be found here.

YM Dow Emini Falls to Support Level Two Before Finding Bottom

2012-01-24T17:55:00.015-06:00

ES and YM Make Late Day Move On Apple

The YM Dow Emini contract trended slowly downward during overnight trading, breaking below the S1 level of resistance (12604) and kept the downward move in place during the pre-marekt session. During the pre-market, the YM moved below the 2nd mid-point level of resistance (12582) before finding the bottom at the S2 level printing the low of the day. Once the cash market opened, the YM changed direction to the upside moving all the way back above the S1 level during the morning session before trading sideways through the lunch hour. Continuing the sideways pattern into the afternoon session, the YM quickly broke through the 1st mid-point level of support (12631) and gained the pivot point (12657) briefly before closing just below the pivot to end the trading session. The range today, with trading taking place below the pivot point most of the day, was most likely the result of news out of Greece that talks to resolve their debt issues have hit a roadblock. Also a mixed bag of earnings reports are weighing on investors.

ES Futures Trading 1/24/12

The ES Emini March contract (ESH12) spent the trading session below the pivot point (1311.50) for most of the day only making significant moves at the cash market open and going into the closing bell. The ES futures trended slowly downward through overnight trading unable to breakthrough the 1st support mid-point level (1308), eventually finding support at the 2nd mid-point level (1301.50) below S1 (1304.50). Once the bell sounded opening the cash market session, the ES made its move breaking back through S1 and the first mid-point support level before leveling off through the lunch hour and into afternoon trading. As the ES moved toward the closing bell, the ES broke through the pivot point before closing the days session a the first mid-point resistance level, (1314.75). Late in the day just after the closing bell, Apple reported their best earnings quarter ever and without Steve Jobs.

The FOMC Announcement is scheduled for 12:30 PM ET tomorrow and most of you know the best place to be at this time is on the sidelines. You can view the entire schedule of economic reports due out tomorrow here.

YM Stays Above Pivot Point Entire Trading Session

2012-01-23T17:26:00.006-06:00

Markets Finish Flat as Investors Wait on Earnings Reports

With a 5% gain already going into the new year, the S&P 500 saw investors today taking a break from the recent recent gains by closing the cash markets almost flat. It's the height of the earnings season and many of the big sticks are reporting this week and investors are taking a wait and see attitude. Investors still have European financial concerns looming in the background which is sure to have impact on the market in the coming days and weeks.

YM Emini Futures Trading 1/23/12

The YM Dow Emini futures stayed above the pivot point (12625) the entire trading session only flirting with the area below it during the New York lunch hour. The opening bell of the cash market saw the YM move briefly above the R1 level (12697) then plunging back down to the pivot point before finding support moving into the lunch hour. Going into the afternoon session, the YM trending up crossing above the 1st mid-point resistance area then reversing to close the cash market just above the pivot point.

ES Emini Futures Trading 1/23/12

The ES S&p 500 emini futures swayed backing forth over the pivot point (1307.75) today beginning in the pre-market, ranging between the Support 1 and Resistance 1 levels. Most of the overnight session was spent in a tight sideways pattern bouncing along S1 until pre-market traders started pushing the ES up above the pivot all the way to R1 which would set the pattern for the day with the exception of the cash market open. The opening bell saw the ES move quickly to the topside through the R2 level but quickly retraced in a free fall all the way back down to S1 before gaining traction. The lunch hour saw the ES gaining upside momentum once again back through the pivot and up to R1 again before closing the cash session just above the pivot point.

Market Economic Reports for tomorrow can be found here

YM E Mini Gains Four Resistance Levels

2012-01-20T18:18:00.010-06:00

Best Week Since the Holidays for S&P and Dow

Posting the best week since Christmas, the Dow gained 2.4% and the S&P gained 2%, investors are showing relief that earnings reveal something other than the internal and external forces that have battered the market during the past year. Europe had a good week also, despite the credit downgrade of several European countries earlier in the week by Standard and Poor. U.S. stocks are off to their best start in the past 15 years with good earnings reports released this week and capped by strong earnings released by IBM and Microsoft Friday.

YM Mini Dow Futures Trading 1/20/12

The YM mini Dow contract (YMH12) offered many more trading opportunities today than the ES offered. The YM broke through and gained four levels of resistance above the pivot point (12554) Friday, all coming after the cash market opened. As can be seen on the chart below the YM passed the mid-point level 12588 just after the cash market opened, based for thirty minutes then quickly moved above the R1 level (12622). The YM took a breather through the New York lunch hour then tested the mid-point level (12639) briefly, pulled back and bounced off R1 before ending the day breaking through both the mid-point level and resistance level 2 (12657).

ES Futures Trading Recap 1/20/12

The ES mini futures contract (ESH12) was tethered to the pivot point (1307) through the entire trading session today, including the pre-market and overnight trading as can be seen on the ES intra-day chart below. After the cash market closed Thursday, the ES attempted to breakthrough the 1311 mid-point resistance level into the late evening but never could break through and establish support. In the early morning hours the ES fell back toward the pivot point and established the day's trading, moving back and forth over the pivot all through the cash session until moving back toward the 1311 mark at the closing bell.

Economic Reports coming out next week can be found here.

Economic reports can and do have an impact on the market.

YM Mini Dow and ES Futures Hold Gains Move Higher

2012-01-19T17:04:00.008-06:00

Unemployment Applications Fall - Google Earnings Less Than Expected

The markets held on to their gains today when better than expected earnings were reported by Morgan Stanley and Bank of America. Economic reports helped sustain the gains with applications for unemployment benefits falling which was announced this morning. However, all the earnings reports were not good and some even unexpected. Google released earnings reports that fell well below market analysts predictions causing Google's stock shares to plunge almost 10% after the report was released. Google said less than expected advertising revenue during the holiday season was the reason for the poor earnings report.

ES Futures Trading 1/19/12

The ES emini futures contract traded above the pivot point (1297.75) the entire trading session having crossed above it at market close yesterday. Overnight trading saw the ES futures move up toward the mid-point level and crossing this resistance level during pre-market trading hours then making a run all the way to the R1 level as can be seen on the ES intra-day chart. Once the cash market opened however, the ES pulled back to the mid-point level and almost touched it as can be seen by the long downward shadow before reversing direction back to the upside. The ES then raced back to the R1 level and quickly broke through going into the noon lunch hour. The ES stayed above the R1 level for the rest of the session trading mostly sideways going into the closing bell. The high for the day printed at 1311.50 with the closing number printing at 1310.50.

YM Mini Dow Trading 1/19/12

The YM mini dow futures followed along with it's cousin the ES and gained the pivot point (12477) not long after Wednesday's close. The YM broke through the next level of resistance at the midpoint level (12516) during pre-market trading and moved all the way up to the R1 level. Once the cash market opened with the bell, the YM mini Dow pulled back briefly and revisited the midpoint level then quickly turned back to the upside. The YM however, attempted several times throughout the day to breakthrough and establish a base above R1 as can be seen on the YM intra-day chart below and never was successful until right at the end of cash market trading. As can be seen on the chart below, the YM futures having broken through the R1 level and are making an attempt on the next level of resistance going into overnight trading.

Economic Reports for Tomorrow

Existing Home Sales 10:00 AM EST

Economic reports can have a substantial impact on the markets.

ES and YM Mini Dow Leave Pivot Point Behind

2012-01-18T19:15:00.006-06:00

Market Gains 1% on IMF and Homebuilders Sentiment

The International Monetary Fund gave a boost to the market Wednesday with an announcement the IMF is exploring avenues of help for struggling debt-ridden European countries. The NAHB also pushed the market to highs not seen since July with the announcement its index of home builders sentiment rose four points to 25. Although 25 is still a low number with 50 being the break even point on the index - the 4 point increase was welcomed by investors and the market responded favorably. Stronger than expected earnings released by Goldman Sachs reduced the impact of banking profit worries after a bad earnings report released by CitiGroup Tuesday.

S&P Emini Day Trading Recap 1/18/12

The ES Emini March contract (ESH12) crossed below the pivot point (1291) twice in overnight and pre-market trading before crossing back above it not long after the opening bell of the cash market. Once the pivot was crossed the third time, the ES left the pivot point behind for the rest of the day on good news from Europe and the NAHB. The ES crossed and sustained a breakthrough of resistance at the mid-point level (1296) between the pivot and R1, briefly pulled back and caught its breath before resuming the upward trend. After the mid-day lunch hour, the ES broke through another level of resistance at the R1 level (1300.75) before closing the day at 1302.25 just off the high of the day which printed at 1304.25 as can be seen on the ES intra-day chart below:

YM Mini Dow Intra-Day Recap 1/18/12

The YM Emini March contract (YMH12) crossed below its pivot point (12420) twice during overnight trading just like the ES with similar results. Once the cash market opened, the YM quickly broke through and held the mid-point level of resistance (12470). The YM however started to move upward again during the latter part of the New York lunch hour and gained the R1 level (12514) for a brief moment during the afternoon session printing the high for the day, (12529). However, the YM could not hold the level and quickly traded back below the R1 level closing 10 points below the R1 level at 12504.

Thursday Economic Reports:

There are several Economic Reports due out Thursday Emini traders should consider as they may have an impact on the market:

Consumer Price Index 8:30 AM

Housing Starts 8:30 AM

Jobless Claims 8:30 AM

Philadelphia Fed Survey 10:00 AM

All times are Eastern Standard Time

A complete list of Thursday's Economic Reports can be found here.

Markets Rally on China and Fall On CitiGroup

2012-01-17T17:40:00.006-06:00

ES and YM Breakthrough Two Resistance Levels

The market rallied from Friday's down day early in the session Tuesday despite economic woes out of Europe with good news out of China, pushing the S&P 500 to its highest level since early last August. The gains were quickly reined in during afternoon trading when CitiGroup announced a drop in profits sending investors heading for the exits. The S&P 500 cash market reached a high of 1303 today before closing at 1290 on the day. The Dow closed up +60 and the Nasdaq closed up 14.41 points.

ES Emini Futures Recap 1/17/2012

The ES Emini futures crossed above the pivot point (1285.50) overnight reaching a high of 1302.50 despite the European Debt crisis. The ES traded above the R1 level for all of the pre-market and began to retrace after the opening of the cash market. The ES emini futures traded above the the mid-point level (1292) for most of the day until CitiGroup news had traders exiting positions with the ES contract plunging below the mid-point level and stopping just short of the pivot point, closing the day at 1289.25 The ESH12 futures intra-day chart is below:

YM Emini Futures Trading 1/17/2012

The YM mini Dow futures captured the pivot (12359) way before the cash market opened and broke through two levels of resistance. The YM stayed above the R1 level (12471) through the New York lunch hour and made two attempts to breakthrough the mid-point level (12511) between R1 and R2 but could not sustain the move. Once the afternoon session began the YM retraced most of its gains and settled at the mid-point area (12415) between the pivot and R1 before closing the cash market at 12420. YM intra-day chart:

Economic Reports Due Out Tomorrow:

Producer Price Index 08:30 AM EST

Industrial Production 09:15 AM EST

See the complete list here.

Markets Pull Back After Four Day Upward Move

2012-01-13T17:57:00.014-06:00

ES and YM Lose The Pivot Early

The U.S. financial markets took a slide Friday ending a four day upward move after news hit the wires that Standard & Poor would downgrade the credit rating of several European countries. The list of Euro countries included France and Austria along with seven other members of the Euro zone. The Netherlands and Germany were not included in Standard and Poor's list.

ES Futures: Friday 01/13/2012

The ES March Emini contract lost the pivot point (1290) in overnight trading and put in the low for the day (1272.75) right at the open of the cash market and quickly put in a reversal at the S2 (1273.25) area and bouncing to the S1 area (1282.50). Unable to breakthrough the S1 level going into the lunch hour, the ES Emini Futures bounced between S1 and the mid-point level (1277.75) until the afternoon session resumed. Once the lunch hour was over, the ES moved up going into the bell, closing one point below the pivot point at 1289. The ES Emini chart for today:

YM Emini Futures: Friday 1/13/2012 Trading Recap

The YM Emini Futures, following along with the ES, traded below the pivot point (12400) during the overnight trading session finding the bottom (12248) in the area of Support level 2, (12258) before bouncing and retracing just after the opening bell.The YM futures then traded up to the S1 level 12335 but could not gain enough momentum to breakthrough and hold going into mid-day. Once traders returned from lunch however, the YM quickly gained its traction and traded steadily upward into the close. Never regaining the pivot, the YM closed at 12390, 23 points below Thursday's closing number.

Financial Reports Tuesday that may have market impact:

Empire Mfg. Survey: 8:30 AM EST

Bank of Canada Announcement: 9:00 AM EST

Economic Reports

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2012-01-10T17:40:00.027-06:00

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YM Emini Futures Trading Results for Monday 1/9

2012-01-09T19:18:00.004-06:00

The YM Emini contract gained the pivot point (12330) early before the open of the cash session and bounced between the pivot and the downside mid-point level (12291) during pre-market trading. Once the bell opened the market the YM continued to trade sideways over the first hour then took a plunge to test the S1 area (12251) shown in our Friday numbers putting in the low of the day at 12252 before reversing into the lunch hour and afternoon trading to regain the pivot and close at 12337, up +28 over Friday's close. As can be seen on the chart, afterhours trading has pushed the YM up above the high of the day.

YM Futures support and resistance numbers with YM pivot point for tomorrow:

R3 12514
MP 12464
R2 12414
MP 12395
R1 12375
MP 12345
PP 12314
MP 12295
S1 12275
MP 12245
S2 12214
MP 12164
S3 12114

NQ Emini Futures Trading Recap for Monday

2012-01-09T19:09:00.004-06:00

The NQ emini contract just like the ES gained the pivot point (2347.75) early in overnight trading trending upward putting in the high for the day in pre-market at (2363.50) just one-quarter point (2363.25) above the R1 level shown in our NQ trading recap Friday evening. After the cash market opened the NQ quickly gave back all the gains in the morning session pulling all the way back to the S1 level (2337) area putting in the low of for the day at 2338.50. Going into the New York lunch hour and afternoon trading session, the NQ put in a reversal and regained the pivot point and topped out at the mid-point level just above the pivot at 2355.50 before closing the cash session at 2346 once again losing the pivot with a -5.50 loss on Friday's closing number. As can be seen on the chart, after hours trading show the NQ emini contract trending up.

NQ Emini Futures S/R numbers and Pivot Point for tomorrow:

R3 2399.50
MP 2387
R2 2374.50
MP 2367.75
R1 2360.75
MP 2355.25
PP 2349.50
MP 2342.50
S1 2335.75
MP 2330.25
S2 2324.50
MP 2312
S3 2299.50

ES Emini Trading For Monday, Jan. 9, 2012

2012-01-09T18:59:00.004-06:00

The ES Emini gained the pivot point (1274.50) early in overnight trading then traded sideways bouncing between between both mid-point levels over and above the pivot through pre-market trading. Once the cash market opened the S&P Emini contract whipsawed back and forth in the the first hour of trading before going down and testing support level 1 (1266.50) stopping just above it putting in the low for the day at 1267.25. Once the low printed the ES trended upward through the New York lunch hour putting in the high for the day at 1277.75, one half point below our midpoint level (1278.25) provided in last Friday's numbers. The ES closed the daily cash session at 1275.50 up +1.25 points above Friday's close. Since I'm getting a late start on the daily recap, you can see from the chart the ES is already climbing toward the R1 level (1279.75) in early evening trading.

Tuesday's numbers for ES Emini Futures Trading

R3 1294.50
MP 1289.25
R2 1284
MP 1282
R1 1279.75
MP 1276.50
PP 1273.50
MP 1271.50
S1 1269.25
MP 1266.25
S2 1263
MP 1257.75
S3 1252.50

YM Emini Futures Trading Results Friday 01/06/2012

2012-01-06T18:05:00.004-06:00

The YM Futures, like the NQ, gained the pivot point, 12307, early in overnight trading but unlike the NQ, the YM did revisit and break below the pivot during the cash trading session. The high for the day, 12408, was put in just after the opening bell, forming a long topside shadow on the candlestick but the 12395 R1 level proved to be too strong and the YM quickly moved back below this resistance level. The next 30 minutes showed a strong reversal as sellers took profits pushing the YM back below the pivot point before bouncing at the MP level (12274) between the pivot and S1 provided in last night's YM trading numbers, printing the low for day at 12272. The YM eventually recaptured the pivot and closed just 2 points above it at 12309.

Support and Resistance Levels with Pivot Point for YM trading Monday:

R3 12602
MP 12534
R2 12465
MP 12427
R1 12387
MP 12359
PP 12330
MP 12291
S1 12251
MP 12223
S2 12194
MP 12126
S3 12058

Labor Market Gains Traction

NQ Emini Futures Trading Friday, Jan. 06

2012-01-06T17:59:00.007-06:00

The NQ Emini Futures gained the pivot point (2333) early in overnight trading and never looked back. The prevailing trend after the pivot was attained - UP! Once the cash market opened, the NQ briefly pulled back for 30 minutes, never really threatening the pivot before resuming the upward trend. At the last hour of the cash session, the NQ made a brief attempt to break through the R1 level (2357) given in last night's trading numbers but could not sustain the move. The high for the day was put in at this point with a print of 2358.75 with the NQ closing the day at 2352.25.

NQ Trading levels for Monday:

R3 2400.25
MP 2387.25
R2 2374
MP 2368.50
R1 2363.25
MP 2355.50
PP 2347.75
MP 2342.50
S1 2337
MP 2329.25
S2 2321.50
MP 2308.50
S3 2295.25

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ES Futures Trading Friday 01/06 - Recap

2012-01-06T17:50:00.004-06:00

The ES moved upward in overnight hours gaining the pivot point (1271) and continuing slowly up into the cash market open. The high of the day, 1282.25 was put in at the open right on the R1 level we provided in last night's ES emini trading recap. After the first hour of trading the ES pulled back as sellers took profits, pushing the ES down to the midpoint level (1267) between the pivot and S1 with low printing at 1266.75, just one quarter point off our levels posted last night. After printing the low of the day, the ES reversed to the upside and topped out for the lunch hour in the area of the midpoint level (1276) between the pivot and R1. Going into the afternoon session the ES traded sideways into the close bouncing off the pivot point a couple of times before closing the day at 1274.25

ES Support Resistance Levels and Pivot Point for Monday:

R3 1305.50
MP 1297.75
R2 1290
MP 1286
R1 1282
MP 1278.25
PP 1274.50
MP 1270.50
S1 1266.50
MP 1262.75
S2 1259
MP 1251.25
S3 1243.50

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Dow YM Emini Trading Recap for 01/05/2012

2012-01-05T16:25:00.006-06:00

The YM Emini Futures lost the YM pivot point (12331) overnight and moved downward into pre-market trading before finding support at the midpoint level (12268) and moving back up during pre-market trading. Buyers recaptured the pivot point at the opening bell briefly before sellers took over pushing the YM back down to the S2 (12238) area where buyers wrestled control away from sellers and pushed the YM back up into and past the lunch hour. The high of the day was printed at 12373, just above the mid-point level (12361) between the pivot point and the R1 level. After lunch, the YM moved sideways into the closing bell, closing at 12329, two points below the pivot. The pivot point was the battleground today in YM trading crossing it three times during the overnight and daily cash sessions.

Daily S/R levels and YM pivot point for tomorrow's YM trading:

R3 12615
MP 12538
R2 12461
MP 12428
R1 12395
MP 12351
PP 12307
MP 12274
S1 12241
MP 12197
S2 12153
MP 12076
S3 11999

NQH12 Emini Trading Chart for 01/05/2012

2012-01-05T16:06:00.004-06:00

The NQH12 Nasdaq Emini Futures broke downward through the pivot point (2320.25) overnight and steadily trended down into pre-market trading where the NQ found the S1 level (2311) listed last night in our daily levels report. Pre-market traders pushed the NQ up into the cash market open to the mid-point level (2329) briefly regaining the NQ pivot point before selling pressure took over in the first hour. Sellers pushed the NQ down to the S1 level briefly before quickly changing direction to the upside once again as buyers pushed the NQ up through the lunch hour. The high for the day was reached at our R2 number (2347) just after lunch with the NQ trading sideways into the cash close, 2342.50, the mid-point level between R1 and R2. If you're not using S/R levels and the NQ emini pivot point in your trading, you are missing out on important indicators which can enhance your emini trading.

S/R levels and Pivot Point for NQ emini trading tomorrow:

R3 2409.50
MP 2390.50
R2 2371.25
MP 2364
R1 2357
MP 2345
PP 2333
MP 2326
S1 2318.75
MP 2306.75
S2 2395
MP 2275.75
S3 2256.50

ES SP 500 Emini Futures Jan. 5, 2012

2012-01-05T15:48:00.004-06:00

The ES emini futures trended slowly downward overnight finding a bottom at the Mid-point level (1262.50) between S1 and S2 before pre-market traders pushed the ES up to the pivot point (1270) at the cash market opening. After the opening bell, the ES again resumed the overnight downward trend before bouncing at the S2 (1259) level after the first hour of trading. The trend was up for the remainder of the morning and through the lunch hour reaching the high of the day (1278) just after lunch, one point below the Mid-point level (1279) between R2 and R1 given in our levels posted last night. After the lunch hour, the ES traded sideways at the mid-point level (1273.50) between the ES pivot point and R1 never breaching the R1 level again before closing at 1274.25 to end the cash market session.

Listed below are the S/R levels and pivot point for ESH12 trading tomorrow:

R3 1307
MP 1298
R2 1289
MP 1285
R1 1282
MP 1276
PP 1271
MP 1267
S1 1263
MP 1258
S2 1252
MP 1243
S3 1234

YM Emini Futures Recap Jan. 4, 2012

2012-01-04T17:03:00.003-06:00

The DOW YMH12 traded down during the premarket and brielfy bounced at the cash market open going into the first hour and half of trading before trending upward for the remainder of the trading session. The high for the day was put in at 12366 with low printing at 12273 before closing the session at 12356, up +18 points.

Tomorrow's pivot point along with S/R levels:

R3 12517
MP 12471
R2 12424
MP 12407
R1 12390
MP 12361
PP 12331
MP 12314
S1 12297
MP 12268
S2 12238
MP 12192
S3 12145

NQH12 Nasdaq Emini Futures Trading Results 01/04/2012

2012-01-04T16:39:00.005-06:00

The NQ Emini Futures opened the cash session at 2312.50, one half point above the MP level between the pivot point and S1 area given in last nights numbers. The NQH12 bounced off support level one and trended upward through the lunch hour and into the close. The low for the day was 2302.50 and the high was printed at 2329.50, closing the day up 12.75 points above yesterday's close.

Listed below are the S/R levels along with the tomorrow's pivot point:

R3 2374.25
MP 2360.75
R2 2347.25
MP 2342.53
R1 2338
MP 2329.13
PP 2320.25
MP 2315.63
S1 2311
MP 2302.13
S2 2293.25
MP 2279.75
S3 2266.25

S P 500 Emini Trading Recap 01/04/2012

2012-01-04T16:24:00.004-06:00

The ES emini (ESH12) trended downward during the premarket, opening the cash session at 1267, one point below the S1 level given in last night's numbers. After the open, the ES bounced briefly off S1 for the first thirty minutes before resuming the downward trend before changing driection to the upside at S2 and trending upward for the remainder of the day, reclaiming yesterday's close, up +1.25 on the day.

Below are the ESH12 Support & Resistance numbers for tomorrow:

R3 1291.92
MP 1286.42
R2 1280.92
MP 1279
R1 1277.08
MP 1273.50
PP 1269.92
MP 1268
S1 1266.08
MP 1262.50
S2 1258.92
MP 1253.42
S3 1247.92

Dow YM Emini Trading Recap for Tuesday Jan. 03, 2012

2012-01-03T17:27:00.002-06:00

The YM emini futures traded in a narrow range throughout the daily cash session today putting in the high for the day(12415)early in the first hour. Trading sideways for most of the trading day, the low was printed at 12322 and the YM closed the day at 12338, gaining 188 points over Friday's close. Most of the points gained since Friday's close came during the pre-market hours before the cash session opened.

The YM Emini Futures S/R numbers along with pivot are below:

R3 12544
MP 12497
R2 12451
MP 12423
R1 12394
MP 12376
PP 12358
MP 12330
S1 12301
MP 12283
S2 12265
MP 12218
S3 12172

Nasdaq NQ Emini Futures Trading Jan. 03, 2012

2012-01-03T17:16:00.004-06:00

The NQH12 opened the morning session at 2312.50 and reached the intraday high (2328.25) in the first hour of trading after the cash market opened. Having a good trading range for traders today, the NQ pulled back into the lunch hour and quickly changed direction to the upside after lunch before tapering off into the close. The low for the day was printed at 2308 and closed at 2316 gaining 41.50 points on Friday's closing number.

S/R numbers with the pivot point for tomorrow are below:

R3 2357.92
MP 2347.79
R2 2337.67
MP 2332.25
R1 2326.83
MP 2322.13
PP 2317.42
MP 2312
S1 2306.58
MP 2301.88
S2 2297.17
MP 2281.04
S3 2276.92

ESH12 Emini Futures Trading 01/03/2012

2012-01-03T16:56:00.003-06:00

The ES Emini Futures started the new year with a small gap up opening from Friday's close opening the morning session today at 1274.50, putting in the high for the day in the pre-market hours at 1280. After the cash market opened the ES traded in a tight range for most of the day closing at 1272. Taking into consideration the gap up from Friday's close, the ESH12 gained 19.50 points on the day.

Tomorrow's ES Emini Futures Trading S/R levels and pivot point:

R3 1293.58
MP 1288.71
R2 1283.83
MP 1280.88
R1 1277.92
MP 1276
PP 1274.08
MP 1271.13
S1 1268.17
MP 1266.25
S2 1264.33
MP 1259.46
S3 1254.58

YM Dow Emini Trading Recap for 12/27/2011

2011-12-27T15:56:00.003-06:00

The YM traded in a tight range for most of the trading session as did the ES and NQ which is to be expected with many traders taking time off for the holidays. The YMH12 quickly reached the high of the day after the open at 12260 before moving into a tight range through lunch and into the close. The low for the day was put in at 12187 and the close of the cash session saw the YM print 12219, not far below the open.

Listed below are the S/R levels and pivot point for the YMH12 tomorrow:

R3 12368
MP 12331
R2 12295
MP 12276
R1 12257
MP 12239
PP 12222
MP 12203
S1 12184
MP 12166
S2 12149
MP 12112
S3 12076

NQ Emini (NQH12) Trading - Tight Range for 12/27/2011

2011-12-27T15:48:00.004-06:00

The NQ emini March contract followed along with the ES today and traded in a tight range for most of the trading session. Opening the cash market 2280 and quickly putting in the day's high at 2296.50 before trading sideways through the lunch hour and into the close. The low for the day was 2275 and the closing number was 2285.75, 5 and 3/4 points above the open.

Below are the Support & Resistance levels for tomorrow along with the Pivot:

R3 2328.75
MP 2318
R2 2307.25
MP 2301.88
R1 2296.50
MP 2291.13
PP 2285.75
MP 2280.38
S1 2275
MP 2269.33
S2 2264.25
MP 2253.50
S3 2242.75

ES Emini (ESH12) Trading For 12/27/2011

2011-12-27T15:37:00.006-06:00

The ES emini contract opened the morning session at 1260.50 reaching a intra-day high of 1264 early in the session and trading sideways into the close at 1260.75, one quarter point above the open. Many traders have taken the week off to enjoy the holidays so tight ranging days are to be expected.

Below are the pivot and S/R numbers for tomorrow's trading:

R3 1276.25
MP 1272.25
R2 1268.25
MP 1266.38
R1 1264.50
MP 1262.38
PP 1260.25
MP 1258..38
S1 1256.50
MP 1254.38
S2 1252.25
MP 1248.25
S3 1244.25

Dow YM Emini Futures Trading for 12/22/2011

2011-12-22T17:01:00.001-06:00

The Dow YM Emini Futures traded above the pivot (12036) in the overnight session and set the trend for the entire cash session, briefly pulling back to just above the pivot point in early trading before moving up the rest of the day. Although the trend was up for the day, the YM emini never broke through the R1 level (12145) and closed the day at 12103. The doD emini trading room executed three trades in the YM today, one for 13 points, another for 31 points and hit the stop on one for a loss of -30 points. The net P/L for Dow emini trading today: $70

YM Emini Futures S/R numbers and pivot point for Friday:

R3 12322
MP 12259
R2 12197
MP 12173
R1 12150
MP 12111
PP 12072
MP 12048
S1 12025
MP 11986
S2 11947
MP 11884
S3 11822

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NQH12 Emini Futures Daily Commentary 12/22/2011

2011-12-22T16:13:00.002-06:00

The NQ emini futures quickly broke through the pivot point (2249.42) at the opening of the cash market in the first 15 minutes, briefly pulled back over the next hour before resuming the upward trend into the close. The NQ printed the high for the day at 2264.25, one point below the midpoint (2265.25) between the pivot and the R1 level as we posted in the NQ recap last night. The NQ emini trading room was stopped out in one NQ trade today for -7.50 points for a P/L of -$150.

NQ Emini Futures S/R levles and Pivot Point for Friday 12/23/2011:

R3 2312.67
MP 2297.79
R2 2282.92
MP 2277.38
R1 2271.83
MP 2262.50
PP 2253.17
MP 2247.63
S1 2242.08
MP 2232.75
S2 2223.42
MP 2208.54
S3 2193.67

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ES SP 500 Emini Futures Trading 12/22/2011

2011-12-22T15:49:00.002-06:00

The ES Emini futures broke through the pivot point (1236.75) in overnight trading and continued the uptrend all the way to the close of the cash markets. The opening bell saw the ES trading at the midpoint (1243.65) between the pivot and the resistance one level and closed the day at 1249.25, just shy of resistance one (1250.50) established in our levels report last night. The ES emini trading room did not execute any trades in the ES emini futures market today.

ES Support and Resistance Numbers and Pivot Point for Friday:

R3 1281.67
MP 1272.29
R2 1262.92
MP 1259.50
R1 1256.08
MP 1250.13
PP 1244.17
MP 1240.75
S1 1237.33
MP 1231.38
S2 1225.42
MP 1216.04
S3 1206.67

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Dow YM Emini Trading Result for 12/21/2011

2011-12-21T16:35:00.001-06:00

The Dow YM Emini March contract (YMH12) reached its high for the day (12158) quickly in the overnight session and before most cash market traders were awake, four points above R1, 12154. The YM moved slowly into the opening of the cash markets and acclerated to put in the low for the day (11928) just before the lunch hour, stopping 5 points above the pivot point (11923) before reversing and moving higher up into the close finishing the day at 12024. The YM emini trading room took 60 points from the market and lost 30 on a stopped trade for a net gain of 30 points on the day with a P/L of $150.

Thursday's Pivot Point and S/R Levels:

R3 12496
MP 12381
R2 12266
MP 12206
R1 12145
MP 12091
PP 12036
MP 11976
S1 11915
MP 11861
S2 11806
MP 11691
S3 11576

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Nasdaq NQ Emini Trading Results for Thursday, Dec. 21

2011-12-21T16:20:00.000-06:00

The Nasdaq NQ Emini March contract (NQH12) peaked in the overnight trading session at 2291.25 and trended slowly downward into the opening bell of New York trading, printing 2264.50 for the opening of the cash market. Putting in the low just before the lunch hour at 2217.75. The afternoon session saw the NQ recovering from the downward slide trending upward into the close at 2239.25 just below the midpoint level between the pivot point and S1 established last night in our NQ daily recap. The NQ emini trading room gained 23 points with the NQ contract pulling in a P/L of $460 on the day.

Tomorrow's S/R levels and pivot point are listed below:

R3 2396.42
MP 2359.67
R2 2322.92
MP 2302.00
R1 2281.08
MP 2265.25
PP 2249.42
MP 2228.50
S1 2207.58
MP 2191.75
S2 2175.92
MP 2139.17
S3 2102.42

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SP 500 Emini ESH12 Trading Recap for 12/21/2011

2011-12-21T16:01:00.001-06:00

The ES Emini March contract reached the high for the day (1249) in the overnight session, trended down in the pre-market to open the cash session at 1236, the midpoint between R1 and the pivot point (1224) established in yesterday's daily ES recap. After the open, the ES trended downward into the lunch hour and established the low of the day (1223), one point below the pivot, 1224. After lunch the ES bounced off the pivot and trended upward in the afternoon session closing 2 points above the cash market open at 1238.25. The ES emini trading room took 14.25 point on the ES emini today and posted a profit of $712.50 on the day.

Thursday's Support & Resistance levels with pivot point:

R3 1288.75
MP 1275.75
R2 1262.75
MP 1256.63
R1 1250.50
MP 1243.65
PP 1236.75
MP 1230.63
S1 1224.50
MP 1217.63
S2 1210.75
MP 1197.75
S3 1184.75

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YM Emini Trading Recap for December 20, 2011

2011-12-20T16:26:00.004-06:00

The YM Emini contract punched through the pivot point of 11742 in the overnight session and opened the cash market at 11861 and rapidly moving up in the first hour of trading as bulls piled on for the ride that would turn out to be an excellent trading day for traders that were wise enough to follow the trend and avoid counter-trend trading.The YM futures closed the cash market session at 12031 for a plus 328 point day. The YM Emini trading room took 183 points in YM trading today for a P/L of $915.

Here are tomorrow's pivot point and S/R levels for the YMH12:

R3 12631
MP 12454
R2 12277
MP 12216
R1 12154
MP 12039
PP 11923
MP 11862
S1 11800
MP 11685
S2 11569
MP 11392
S3 11215

NQ Emini Trading Commentary for Tuesday, 12/20/2011

2011-12-20T16:12:00.006-06:00

The NQ Emini followed along with the ES futures and broke through the pivot point of 2209.75 in the overnight market and opened the cash market this morning slightly above the R1 level provided in last night's market recap, at 2246. Quickly moved upward in the first hour of trading to the R2 level and trending slowly upward for the remainder of the NQ trading session closing the cash session at 2273.25. The NQ Emini Trading Room gained 33.25 points today for a P/L of $665 on the day.

The NQ Emini Trading Levels for tomorrow are listed below:

R3 2396.92
MP 2361.42
R2 2325.92
MP 2311.75
R1 2297.58
MP 2276.25
PP 2254.92
MP 2240.75
S1 2226.58
MP 2205.25
S2 2183.92
MP 2148.42
S3 2112.92

ES Emini (ESH12) Trading Results for 12/20/2011

2011-12-20T16:03:00.001-06:00

ES Emini futures traders that entered long positions at the opening bell this morning were richly rewarded as the futures markets opened strong and never looked back all the way to the closing bell. The ES Emini had already pushed through the pivot point (1205) in pre-market we established in yesterday's ES recap. By the time the cash market opened, the ES futures had attained the R1 level of 1213 and rocketed up to R2 (1226) in the first hour of trading. After the first hour and a half of the market the ES emini trended steadily up for the remainder of the day closing at 1236, right at the midpoint level provided in yesterday's recap. The ES emini trading room took 13.75 points from the market today for a P/L of $687.50.

Tomorrow's ES pivot point and S/R levels are provided below:

R3 1301
MP 1281.75
R2 1262.50
MP 1255.88
R1 1249.25
MP 1236.63
PP 1224
MP 1217.38
S1 1210.75
MP 1198.13
S2 1185.50
MP 1166.25
S3 1147

YM Emini Futures Trading Results for Monday, 12/19/2011

2011-12-19T17:09:00.004-06:00

The YM emini contract (YMH12) peaked at its high for the day, 11857, in pre-market before nose-diving at the opening bell of the cash session. The downward move stopped at 11719, 6 points above the S1 level (11713) we established in Friday's YM Trading Recap. The YM followed along with the ES and NQ and traded sideways through the lunch hour and quickly resumed its dowward trend into the close. The YM closed midway between S1 and S2 levels at 11693. The YM Emini Trading Room took a total of 106 points from the YM today for a total P/L of $530.

The YM Pivot Point and S/R levels for trading tomorrow are listed below:

R3 12109
MP 12017
R2 11925
MP 11867
R1 11809
MP 11775
PP 11741
MP 11683
S1 11625
MP 11591
S2 11557
MP 11465
S3 11373

NQ Trading Commentary for Monday, Dec. 19, 2011

2011-12-19T16:48:00.005-06:00

The NQ COntract (NQH12) followed along with the ES and topped out at the high of the day in pre-market at 2251. When the cash market opened the NQ moved down quickly for the morning session to just above the S1 area of 2214 established in our NQ levels in Friday's NQ Trading Recap. The NQ traded sideways through the lunch hour before resuming its downward trend into the close. The NQ bounced at 2206, the mid-point level between S1 and S2 given in Fridays pivot point levels, before closing exactly on the S1 level of 2214. The NQ Emini Trading Room took 27 points on the NQH12 today with a profit P/L of $540.

Tuesday's Pivot Point and S/R levels are listed below:

R3 2307
MP 2286.13
R2 2265.25
MP 2251.50
R1 2237.75
MP 2230.63
PP 2223.50
MP 2209.75
S1 2196
MP 2188.88
S2 2181.75
MP 2160.88
S3 2140

ES Emini Trading Recap For Monday, 12/19/2011

2011-12-19T16:05:00.009-06:00

The ES Emini contract (ESH12) hit the high of the day in pre-market trading and trended downward the entire trading session Monday. In Fridays' ES Emini Trading Recap, the pivot point for today's trading was established at 1214.75 which the ES quickly pushed downward through at the opening bell of the cash market. The downward spiral stopped briefly for the New York lunch hour at support level 1 (1204) which we calculated in Friday's recap. After the New York lunch hour the ES continued its downward trend until it bounced at support level 2, 1198.75 and closing the day just above this level at 1199.25. The ES Emini Trading Room finished the day flat.

The Pivot Point and S/R levels are listed below for ES emini trading tomorrow:

R3 1247.92
MP 1237.42
R2 1226.42
MP 1220.00
R1 1213.08
MP 1209.50
PP 1205.92
MP 1199.00
S1 1192.08
MP 1188.50
S2 1184.92
MP 1174.43
S3 1163.92

Dow YM Emini Trading Results Friday, 12/16/11

2011-12-16T20:08:00.003-06:00

The YM opened the morning session at 11820, reaching the high of the day, 11909, within the first part of the morning trading session. As the day progressed, all gains were lost with a low put in at 11746 before rebounding slightly and closing at 11778. The YM emini trading room executed several YM emini trades today banking a P/L of $665.

Below are the YM Trading pivot point and S/R levels for Monday:

R3 12137
MP 12055
R2 11974
MP 11925
R1 11876
MP 11843
PP 11811
MP 11762
S1 11713
MP 11680
S2 11648
MP 11566
S3 11485

Nasdaq NQ Emini Trading Recap for 12/16/2011

2011-12-16T19:56:00.003-06:00

The NQ emini contract reached the high of the day, 2264.25, quickly after opening at 2223.25 and going down afterwards reaching a low of 2221.75 and trading sideways from the New York lunch hour until closing at 2232.75 for the day. The NQ emini trading room lost -7.50 points on one trade for a net loss of -$150 and finished flat on one other NQ trade placed.

Monday's NQ emini pivot point and trading (S/R) levels are listed below:

R3 2324.58
MP 2303.33
R2 2282.08
MP 2269.75
R1 2257.42
MP 2248.50
PP 2239.58
MP 2227.25
S1 2214.92
MP 2206
S2 2197.08
MP 2175.83
S3 2154.58

S&P 500 Emini (ES) Recap and Trading Levels for 12/16/2011

2011-12-16T19:39:00.003-06:00

The ES emini trading room took 12 points from the market Friday for a P/L of $600. The ES contract opened this morning at 1212.25 reaching the high for the day, 1225, within the first two hours of market trading. The low was 1208.25 before closing the session at 1211, one point below the open.

Monday's Trading levels, the pivot, support and resistance numbers are as follows:

R3 1248.25
MP 1239.88
R2 1231.50
MP 1226.38
R1 1221.25
MP 1218
PP 1214.75
MP 1209.63
S1 1204.50
MP 1201.25
S2 1198
MP 1189.63
S3 1186.25

YM Emini Trading Recap and Chart for 12/15/2011

2011-12-15T16:54:00.002-06:00

The Dow Emini YM contract gave the YM emini trading room 83 points today for a P/L of $415. The YM opened today at 11,760 and reached a intraday high of 11,897 and a intraday low of 11,694 which was put in during the overnight session before the cash markets opened before closing the day at 11,822.

YM emini Pivot Point and S&R numbers for tomorrow:

R3 12210.33
R2 12007.33
R1 11914.67
PP 11804.33
S1 11711.67
S2 11601.33
S3 11398.33

NQ Emini Recap for Thur. Dec. 15

2011-12-15T16:09:00.004-06:00

The NQ emini contract opened this morning at 2229.25 topping out with a intraday high of 2252 putting in the days low at 2215 before closing just above the open at 2223.25. The NQ emini trading room took 24.25 points on the NQ today for a P/L of $485.

NQ Emini Pivot Point and S&R Levels for tomorrow:

R3 2304.08
R2 2267.08
R1 2245.17
PP 2230.08
S1 2208.17
S2 2193.08
S3 2156.08

ES Emini Recap for Thursday Dec. 15

2011-12-15T15:34:00.006-06:00

The ES emini opened this morning's session at 1206.25 touching 1198 for the low of the day before reaching a intraday high of 1220.50 and closing the cash session at 1211. The emini trading room placed two trades with the ES contract today with both trades finishing flat.

ES Emini Pivot Point and S&R Levels for tomorrow:

R3 1255.08
R2 1232.58
R1 1222.17
PP 1210.08
S1 1199.67
S2 1187.58
S3 1165.08

Emini Trading - Lessons and Hard Knocks

2011-09-27T19:46:00.025-05:00

Costly Lessons Learned

I remember May 5, 2005 very well as it was the day I realized I needed to make a change or my emini trading days would soon be over. Most emini traders experience days they will never forget and for me, May 5, 2005 was my unforgettable day. This was the day GM was downgraded to junk bond status by Standard and Poor’s Corp. What was so surprising about this announcement was not that it WAS announced but WHEN it was announced. The news hit the wires in the middle of the New York lunch hour! What is the significance of this particular time? For me it was the fact that I was holding a long position of five YM contracts when the news hit the wires. Needless to say the news resulted in a death spike of epic proportions and I lost a few thousand dollars in the blink of an eye. Hopefully you can avoid this kind of disaster and I've provided information that can help later in this article.

Click Here To View The Daily Emini Trading Room Results

You may be asking yourself why am I telling you this? Because this was a major turning point in not only my trading career, but my life. I learned hard lessons from this event and when I look back now, I’m glad it happened. I know some of you are probably snickering and thinking, “Well, it’s good enough for you if you are stupid enough to trade during the New York lunch. You should know better!” You’re right, I knew better since most experienced traders are away from their trading screens taking a well-earned break from the morning session’s action at this time. Not me! I wanted to make up for the losses I had incurred previously and forced the trade because I lacked discipline and money management skills. (I’m snickering now because some of you reading this know exactly what I’m talking about).

Some of you may have mastered trading during the New York lunch hour. I haven’t and won’t attempt it again. At this time of the trading day the futures market is in the doldrums and really not doing much since the big guns are at lunch. My mistake on this day was really a combination of mistakes. First, I shouldn’t have been trading at this time of day and I knew it. Second, at the time I thought major news events like this were only announced after-hours. WRONG! Third, I didn’t have a stop loss in place and it wouldn’t have mattered anyway since the spike happened so fast it would have blown right through my stop. Fourth and most importantly, I was trading (gambling is more like it) on pure emotion rather than sound trading principles. All I knew is that I wanted to make up for my losses! Guess what? I sustained an even greater loss.

Are you experiencing some of what I mentioned above? Have you traded when you shouldn’t be trading? Have you forced trades in an attempt to make up for previous losses? Are you gambling rather than using disciplined trading methodologies? Will you continue to throw the dice and hope for the best or learn to trade well? If you’re reading this, you probably are guilty of many of these. Most of the articles on this blog are about trading methods, indicators, risk management and detailed information about each emini contract. I wrote this article because I’m getting a lot of emails from people struggling with their trading. First let me say, I’m flattered that you would consider me worthy of answering your questions. However, I started this blog about four years ago because I love the financial markets and particularly the index futures market, but I’m not a teacher or a mentor. The articles I have written here have resulted from my experiences as an emini trader.

Over the past four years I have tried to direct people to sources that will help them with their futures trading and from the feedback I have received over this time period, I have been successful to some degree. However, as this blog grows it receives more traffic and I feel I have a responsibility to my readers to share with them how I reached a level of success with emini trading. After the losses I incurred on May 5, 2005 due to the GM downgrade, I realized I had to make a change. I knew I didn’t want a canned trading system designed by someone else, I wanted a teacher. Someone I could follow along with during the market day and watch as they traded. I wanted to learn why they took a position and why they didn’t. I wanted to learn the dynamics of the markets and how to interpret market data.

I scoured the Internet searching for trading rooms. I spent more time than I care to admit on Pal Talk in some of those trading rooms without success. Finally I found Firetraders. They closed down a few years ago since the founder decided to move on to bigger and better things, but the education I received during the six months I was a member was priceless. I learned how to trade, use discipline and most importantly I learned money management. They did not sell a canned trading system for thousands of dollars but they did offer a trading room designed to teach and help inexperienced traders become successful emini traders.

Since I have received so many emails form readers, I decided to look around and find something similar to what I had with Firetraders. Millennium Traders offers a trading room for emini futures, stock day trading, Forex and a swing trading room. Some of you may trade in other markets as I have, including day trading stocks although I don’t day trade stocks much anymore but I do swing trade. In fact swing trading is now becoming more of my focus since this type of trading allows me more free time. I’ve never ventured into the Forex market since it doesn’t interest me in the least, however I‘m sure some of you reading this may benefit from the Forex trading room at Millennium traders. Here is the link to the Millennium Traders website.

Some people have emailed me about scalping emini contracts and I do love this method of trading futures. If you are looking for a system designed specifically for scalping eminis, Ryan Watts of Watts Trading Group offers a system that can be used for scalping both emini contracts and Forex. I have been in contact with Ryan on a number of occasions and he is ever helpful and cares about his clients. This is the only recommendation I have for a canned trading system since it is specialized for a specific methodology of emini trading. You can find his system here at Watts Trading Group.

If you want to learn as I did, nothing is better than a live emini trading room. It doesn’t matter which contract you trade, ES Emini, YM Emini or the NQ Emini, they react to the market in similar fashion. The moderator I followed traded primarily the ES and I traded the DOW YM. Although we traded two different contracts, the fundamentals were the same. More information about the various emini contracts can be found at the CBOT and the CME websites. Thank you all for your emails and I hope I’ve provided enough information here to hopefully get some of you that are struggling on your way to emini trading success!

Using Trailing Stops In Your Emini Trading System

2010-08-23T16:42:00.022-05:00

As emini traders, we are all familiar with the feeling of excitement when the trade goes our way. The satisfaction of knowing we used the necessary discipline as required by our emini trading system and followed through adhering to the rules as outlined by that system. We watch in anticipation as the set-up materializes and reveals the entry point we expected. Order entry was executed without a hitch and now we are watching as all our hard work has paid off…so far. The next step however, and the most difficult for new traders is locking in profits.

Learn how to trade Emini Futures - 89.9% Success Rate!

This area of the trading process is where many deviate from their rules based emini trading system and let emotion take over the trade. Many times profit is erased and a loss is incurred because the emini futures trader fails to follow his system and obey his stop loss. Maximizing profits is the goal and the only way to ensure we lock in profits already made is by utilizing and enforcing the emini trailing stop.

The trailing stop is dynamic in that you as the trader will continuously adjust the stop as your position continues to move up with the market if in a long position. The opposite would be true if the emini trader were holding a short position and the direction is down. By continually moving the trailing stop as our position moves, we lock in profits already made, effectively a guarantee that a loss will not be a result of the trade.

The trailing stop is a one-sided calculation in that it is calculated to move in only one direction, trailing our position as the trade moves in the direction we anticipated from the beginning. The trailing stop is only adjusted as our position makes new highs if we are long the market or adjusted downward if we are short the market. The trailing stop is never adjusted opposite of the initial move. The trailing stop is designed to protect profits already made only.

Many times, new traders begin a trade with the emini market going in the direction they expect and are quickly in the money. But as is often the case, the market reverses and turns against the trader. Either out of emotion or the absolute need to be right, the new trader either fails to obey his trailing stop or never considers using one in the first place. Profits made earlier rapidly evaporate and turn into a loss which could have been avoided had the trader obeyed the rules of his emini trading system and entered a trailing stop order.

Of course, a initial stop loss order should be implemented when the trade is executed in the beginning. The initial stop loss is there to protect you from a large loss should the trade go south below your entry point. The trailing stop is there to protect profits as the trade unfolds and continues to move in the direction you anticipated when the order was executed. Emini trading can be fast paced, volatile and is highly liquid and it is the equivalent of trading suicide to actively use emini day trading methods without employing both initial stop losses and trailing stops in your emini trading system.

Trailing stops can be used and are used effectively in both emini day trading and emini scalping no matter which of these emini trading methods are chosen to trade the index futures market.

A Brief Emini Trading Course In Relation To Money Management And The Traits Of The Futures Trader

2010-07-21T17:37:00.005-05:00

Knowing Your Personality And Risk Management

The index futures market has experienced a escalation in volume over the preceding few years from the time when the initiation of the smaller emini contracts which are accessible on the most important indexes. What makes emini futures so appealing is traders no longer need a a big trading account on hand to play the futures markets seeing as margin account requirements are significantly lower. With extra emini futures traders involved through the day by day sessions, improved liquidity and volatility create several day after day possibilities for traders to enter successful trades.

However, index futures trading will call for a certain degree of proficiency from the index futures trader to be successful. If you happen to be considering trading in the emini markets, it is imperative that you first consider a individual inventory of equally your personality qualities and your skill level in the emini futures markets. Emini contracts trading is best utilized by those people that are seeking to harness a shorter time frame trading method such as emini index futures day trading or emini scalp trading, in view of the fact that volatility and liquidity in the emini futures markets offer itself very well to these trading approaches.

Taking an inventory of yourself ought to be your original move given that individual characteristics are going to be a most important factor in your effectiveness as a index futures trader. Recognizing that losing trades are going to be incurred when emini trading, despite what futures market is chosen to trade, is an unquestionable requirement. Lots of individuals experience trouble tolerating monetary losses and losing trades are to be expected when trading emini futures. Not any trader executes successful positions all of the time although proficiency levels can be increased to the point where the trader comprehends unproductive trades are a part of profitable trading. Bad trades will undoubtedly be a part of your trading but a disciplined trader realizes the best way to shelter his trading capital by exiting quickly on bad trades.

Most veteran traders utilize a two-fold trading approach that is designed to use trading indicators to notify them of potential trade set ups and stop-loss entry. Alerts employed for likely market entry is simple enough to understand because nearly all index futures traders with even a basic comprehension of the financial markets understand charts and trading indicators are used to determine trade entry. Nonetheless, protection of capital is the element which separates profitable index futures traders from unsuccessful and broke traders.

Index futures brokers and market experts underline the necessity for trading software platforms and order entry with too little mentioned about the ideology of good protection of capital in a index futures trading system. A thorough trading system will help the emini futures trader determine what time to execute entry into the index futures market and more notably, at what time to exit the market. Determining your personal traits along with obtaining the obedience to go along with your trading platform are characteristics of a profitable emini trader. Playing the index futures market often is a lucrative and gratifying trade if the trader is disposed to learn the underlying forces of the emini futures markets and build a trading system which is proper for their personality and tolerance levels.

Emini Trading - The Dynamics Of Index Futures

2010-06-26T18:25:00.011-05:00

An Overview Of Emini Trading
The index futures market has seen an increase in volume over that last few years since the introduction of the scaled down emini contracts which are offered on all three major indexes. What makes them so appealing is traders no longer need a surplus of cash available to trade the futures markets since margin requirements are significantly lower. With more traders involved during the daily sessions, increased liquidity and volatility offer multiple daily opportunities for market participants to execute profitable trades.

However, emini index futures trading does require a certain level of skill on the part of the trader to be successful. If you are considering trading in the futures markets, it is important that you first take a personal inventory of both your personality characteristics and your skill level in the financial markets. Emini futures trading is best utilized by those people who are looking to apply a short term trading methodology such as day trading or scalp trading, since volatility and liquidity in the futures markets lend themselves very well to these trading methods.

Taking an inventory of yourself should be your first step since personality characteristics will be a major factor in your success as a emini trader. Understanding that losses will be incurred when trading, no matter what financial market is chosen to trade, is an absolute necessity. Many people have difficulty accepting monetary losses and losses are an absolute when trading futures. No trader executes winning trades one-hundred percent of the time although skill levels can be increased to the point where the trader understands losing trades are a part of successful trading. Bad trades will happen but a skilled trader knows how to protect his trading capital by cutting losses short on broken trades.

Most veteran traders utilize a tandem trading system that employs indicators to alert them of possible trade set ups and money management rules. Indicators used for possible trade set ups is self-explanatory since most people with even a rudimentary knowledge of trading understand charts and indicators are employed to determine trade execution. However, money management or preservation of capital is what separates successful traders from struggling and broke traders.

Brokers and market gurus emphasize the need for trading software and order entry with very little said about the principles of sound money management in a trading system. A complete system will help the trader determine when to enter the market and more importantly, when to exit the market. Determining your personality traits as well as having the discipline to follow your trading system rules are attributes of a successful emini futures trader.

Do you have what it takes to be a successful emini futures trader? Do you understand trading losses are part of successful trading? Are you searching for a emini course that will help you implement a successful trading system that will not only help you enter the market, but also help you cut losses short and protect your capital?

Emini Trading Platforms

Much has been written about trading in the financial markets. Trading techniques, indicators, charts, brokers, strategy, the list goes on. Index futures trading is one area of the financial world where much conversation takes place especially about Emini trading platforms. Mini sized index futures contracts were introduced over ten years ago as the smaller version of the larger index futures contract, opening the market to people who otherwise could not afford to speculate in futures.

Fast-forward to the present and we see that Emini trading has become much simpler in terms of technology, but the game remains the same. Successful index futures trading still depends entirely on the individual trader, his skill level and to a lesser extent, the platform used. To a futures trader, a platform is a combination of both technology and the human element.

The technology part is easily enough defined in terms of charting software, market data feeds, brokerage account, high-speed internet connections and numerous other technological attributes. However, these high-tech tools are entirely useless as a trading platform without a methodology in place which can only come from the other half of the equation - the human element.

The human element is in many ways even more complex than the technological side. Many new participants quickly learn the latest bells and whistles are no match for seasoned veterans that use disciplined trading methods. Hesitation and second guessing are not traits commonly found among skilled Emini traders. Experience has shown them a trading plan with goals, discipline, excellent money management skills and a commitment to their trading plan combined with technology are the characteristics of a successful Emini trading platform.

Trading platforms can be purchased easily enough from various vendors. The trader then has to decide if he has the skills necessary in the beginning to formulate his own personal trading plan or utilize the system of an experienced Emini futures trader. For most people, using a system developed by a skilled trader is the best approach until such time the novice becomes knowledgeable enough about market dynamics that he can develop his own methodology. Emini trading platforms are a must but are only as good as the trading system used to run them.

Emini Trading Methods

One of the first lessons a new trader learns is in order to be successful as a trader, a system must be utilized which fits their personality and risk tolerance. Traders and investors across all financial markets understand their success depends on a system and methodology that is designed to fit their unique criteria and trading goals. Although there are many trading systems, this article will describe three possible approaches traders could use to learn how to trade futures using emini contracts.

One of the more popular methods used by traders is the trend following method. Executing trades that follow the prevailing trend is favorable since going with the current trend places the trader in higher percentage trades since sentiment favors the current trend. Trades are initiated only when certain criteria are met such a price move in the direction of the current trend with expectations that the current trend will continue.

Another system not as widely used as the trend following system is the countertrend system. This system is best utilized by veteran traders with experience in market dynamics since it requires that trades be initiated in the opposite direction opposed to the current trend. Contrarian traders that have a tendency to oppose the crowd mentality utilize this method when they emini alerts the market may be in correction or is due of for a pullback. This system can be applied when indicators reveal the market may be severely over-bought and pulling back before continuing the current trend. Traders that favor only scalping a few points in profit will often use this method.

Some traders use charting patterns to determine when to enter and exit the market. Chart pattern recognition is widely used among market participants, especially with Japanese candlestick charts. Chart pattern traders, especially in day trading, seldom consider the current trend and rely on candlestick formations to determine weather to enter or exit the market. By learning to recognize these formations and what the mean in terms of market direction, the trader can very often predict which direction the market will move.

Emini Support, Resistance And Pivot Point Levels For This Week

2010-05-23T15:24:00.000-05:00

Below are the support and resistance levels along with the pivot points for the upcoming week. The (W) represents the weekly levels and the (D) represents Monday’s levels. The S/R numbers are for the ES Emini, YM Emini, NQ Emini and The Russell Emini.

ES Emini June Contract- S&P 500 ESM10

W R4 - 1383.17
D R4 - 1187.33
W MP- 1335.04
D MP- 1168.58
W R3 - 1286.92
D R3 - 1149.83
W MP- 1238.79
D MP 1131.08
W R2 - 11190.67
D R2 - 1112.33
W MP- 1164.13
D MP- 1105.38
W R1 - 1137.58
D R1 - 1098.42
W MP- 1116.00
D MP- 1086.63
W PP - 10942.42
D PP - 1074.83
W MP- 1067.88
D MP - 1067.88
W S1 - 1041.33
D S1 - 1060.92
W MP- 1019.75
D MP - 1049.13
W S2 - 998.17
D S2 - 1037.33
W MP- 950.04
D MP - 1018.58
W S3 - 901.92
D S3 - 999.83
W MP- 853.79
D MP - 981.08
W S4 - 805.67
D S4 - 962.33

YM Emini June Contract - Dow YMM10

W R4 - 12684
D R4 - 10964
W MP- 12278
D MP- 10816
W R3 - 11872
D R3 - 10668
W MP- 11466
D MP- 10520
W R2 - 11060
D R2 - 10372
W MP- 10835
D MP- 10319
W R1 - 10610
D R1 - 10266
W MP- 10429
D MP- 10171
W PP - 10248
D PP - 10076
W MP- 10023
D MP - 10023
W S1 - 9798
D S1 - 9970
W MP- 9617
D MP - 9875
W S2 - 9436
D S2 - 9780
W MP- 9030
D MP - 9632
W S3 - 8624
D S3 - 9484
W MP- 8218
D MP - 9336
W S4 - 7812
D S4 - 9188

NQ Emini June Contract - NASDAQ NQM10

W R4 - 2338.42
D R4 - 2011.75
W MP- 2255.17
D MP- 1977.50
W R3 - 2171.92
D R3 - 1943.25
W MP- 2088.67
D MP- 1909
W R2 - 2005.42
D R2 - 1874.75
W MP- 1958.88
D MP- 1860.88
W R1 - 1912.33
D R1 - 1847
W MP- 1875.63
D MP- 1826.63
W PP - 1838.92
D PP - 1806.25
W MP- 1792.38
D MP - 1792.38
W S1 - 1745.83
D S1 - 1778.50
W MP- 1709.13
D MP - 1758.13
W S2 - 1672.42
D S2 - 1737.75
W MP- 1589.17
D MP - 1703.50
W S3 - 1505.92
D S3 - 1669.25
W MP- 1422.67
D MP - 1635.00
W S4 - 1339.42
D S4 - 1600.75

RJ Emini June Contract - Russell 2000 RJM10

W R4 - 902.27
D R4 - 729.83
W MP- 861.97
D MP- 715.48
W R3 - 821.67
D R3 - 701.03
W MP- 781.37
D MP- 686.58
W R2 - 741.07
D R2 - 672.13
W MP- 718
D MP- 666.30
W R1 - 694.93
D R1 - 660.47
W MP- 677.70
D MP- 651.85
W PP - 660.47
D PP - 643.23
W MP- 637.40
D MP - 637.40
W S1 - 614.33
D S1 - 631.57
W MP- 597.10
D MP - 622.95
W S2 - 579.87
D S2 - 614.33
W MP- 539.57
D MP - 599.88
W S3 - 499.27
D S3 - 585.43
W MP- 458.97
D MP - 570.98
W S4 - 418.67
D S4 - 556.53

Not A Good Week To Be Long The Emini Futures - Bears Prevailed

2010-05-21T20:19:00.005-05:00

The financial markets had a chaotic week as both stock traders and emini futures traders dealt with European dominated news which threatens a world wide economic slowdown. Although the Market Friday had a late-session rally, all the major indexes are down from the top they reached late last month, about ten percent. Many in the financial community are pegging it as a correction, which is common after long upward trends. In this case, the bull market began it’s ascent in March of 2009, roughly 14 months of uninterrupted gains.

However, at this stage, it is still undetermined if the correction is in or if the market will continue it’s descent and change into a bear market, which requires a pullback from the high of twenty percent or more. The Dow took a nose dive Thursday, shaving off 376 points making Thursday the one worst day close in the past year. Friday the Dow cut some if it’s losses gaining +125 on the day. European financial woes are being credited with the present market conditions.

Emini Trading Recap For This Week

ESM10 - S&P 500 Emini ES June Contract

The ES Emini opened the week at 1,133.75 reaching a high of 1,147.50 on Tuesday as news began coming from Europe, which began weighing heavy on the mind of traders. The low for the week, 1,051.25 came in Friday before a small rally erased some of the losses sustained over the week. The S&P 500 Emini June contract lost -49.50 points this week.

YMM10 - Dow Emini YM June Contract

The YM Emini began the week opening at 10600 printing a high of 10698 Tuesday before following the ES and the rest of the market reacting to the news out of Europe. The low for the YM June contract marked it’s low point in Friday’s trading at 9,886 before rallying and closing the week at 10,160, shedding a total of -440 points.

NQM10 - NASDAQ Emini NQ June Contract

The NQ Emini started the week opening up at 1,907.75 reaching the week’s high Tuesday of 1,876.75 before trending down the rest of the week along with the other emini futures. The low was put in Friday at 1,765.50 before moving back up with the market rally late Friday closing the week at 1,819.25, down -88.5 points for the week.

RJM10 - Russell 2000 Emini RJ Contract

RJ Emini opened Monday at 694.10 and printing the weekly high Tuesday at 706.60 before turning south for the rest of the weekly session. The low for the Russell Emini came in at 626.00 Friday before moving back up and closing the week at 648.80, down -45.3 points for the week.

S&P 500 Breaches 200-Day Moving Average - Emini Trading Finishes Red

2010-05-20T06:31:00.002-05:00

Europe continued it’s drag on the market Wednesday pushing the S&P 500 briefly below the 200-day moving average of 1102 before buying pushed the index back above the important psychologically level of 1100. Stocks erased half their losses before the market closed for the day. The euro continues to weigh heavy across all financial markets. Below are the listed support and resistance numbers for Thursday in the Emini Futures markets.

S&P 500 ES Emini Trading Recap - ESM10

The ES Emini futures June contract high point for the day came in at 1122.75 five points shy of the pivot point going briefly green before turning into a down, red day. The low came at 1098.75 just above the S2 number and closing the session down -8.75 points at 1110.

The ES June Emini support and resistance and pivot point are listed below for Thursday's session.

R4 1182.50
MP 1170.50
R3 1158.50
MP 1146.50
R2 1134.50
MP 1128.38
R1 1122.25
MP 1116.38
PP 1110.50 Pivot Point
MP 1104.38
S1 1098.25
MP 1092.38
S2 1086.50
MP 1074.50
S3 1062.50
MP 1050.50
S4 1038.50

Dow YM Emini Trading Recap - YMM10

The YM Emini June contract traded the days high at 10507 never even coming close to the pivot point in the downward push today. The low came in at 10307 pushing through the support 2 level of 10312. The close of the day was at 10405 just above the S2 number of 10401, closing down -85 points from the previous day.

Below are Thursday's support and resistance Dow emini levels for tomorrow:

R4 11006
MP 10906
R3 10806
MP 10706
R2 10606
MP 10556
R1 10505
MP 10456
PP 10406 Pivot Point
MP 10356
S1 10305
MP 10256
S2 10206
MP 10106
S3 10006
MP 9906
S4 9806

NASDAQ Emini NQ Emini - NQM10

The NQ June Emini high for the day on Wednesday was 1893.75, five points below the pivot at 1898.92 never gaining any upward momentum. Printed low for the session was 1849.50, closing the day down -19.75 at 1868.25.

NQ Emini June support and resistance levels and pivot point for tomorrow.

R4 2003.25
MP 1981.13
R3 1959.00
MP 1936.88
R2 1914.75
MP 1903.13
R1 1891.50
MP 1881.00
PP 1870.50 Pivot Point
MP 1858.88
S1 1847.25
MP 1836.75
S2 1826.25
MP 1804.13
S3 1782.00
MP 1759.88
S4 1737.75

Russell 2000 Emini Trading Recap - RJM10

The Emini Russell 2000 June contract reached a daily high of 686.60 three points shy of the pivot point of 689 in our posted numbers. The low for the Russell Emini session came in at 664.30, the midpoint between support level one and support level two. The RJM10 closed at 672.60, one point above or support one number of 671.47. Trading closed down -10.40 on the day.

The Russell Emini June contract support and resistance levels are as follows:

R4 741.40
MP 730.25
R3 719.10
MP 707.95
R2 696.80
MP 690.75
R1 684.70
MP 679.60
PP 674.50 Pivot Point
MP 668.45
S1 662.40
MP 657.30
S2 652.20
MP 641.05
S3 629.90
MP 618.75
S4 607.60

Emini Trading Economic News For Thursday, May 20th

Continuing Claims 8:30 EST
Initial Claims 8:30 EST
Leading Indicators 10:00 EST
Philadelphia Fed 10:00 EST

Economic Calendar

Germany Bans Naked Short Selling - Emini Futures Down In Overnight Trading

2010-05-19T06:55:00.001-05:00

The European Union handed Greece 14.5 billion euros which brought in early buying as the days session began. Then more news out of Europe, Germany specifically, caused the euro to slide, taking the markets with it. Germany announced it is banning naked short selling in certain stocks causing the euro to resume it’s downward spiral. The markets soon followed closing the day at the worst levels of the day. Overnight, the emini futures are trending lower as the European markets continue down in Wednesday trading.

S&P 500 ES Emini Trading Tuesday Recap - ESM10

The ES Emini futures June contract put in a high Tuesday of 1147.50, two points above the R1 level (1145.58) in our numbers posted last night. The low for the session came in at 1115.25, three points below the S1 number posted last night, 1118.08. The ES closed the day at 1118.75, almost exactly on our S1 number posted prior to the open! The ES closed down -15.75 points on the day.

The ES June Emini support and resistance and pivot point are listed below for Wednesday’s session.

R4 1223.92
MP 1207.79
R3 1191.67
MP 1175.54
R2 1159.42
MP 1149.25
R1 1139.08
MP 1133.13
PP 1127.17 Pivot Point
MP 1117.00
S1 1106.83
MP 1100.88
S2 1094.92
MP 1078.79
S3 1062.67
MP 1046.54
S4 1030.42

Dow YM Emini Trading Tuesday Recap - YMM10

The YM Emini June contract put in the days high at 10698, nine points above last nights posted R1level. The low of 10461 during the session was two points above the posted S1 level as the YM tumbled down a total of -109 points on the day closing at 10490.

Below are Wednesday’s support and resistance Dow emini levels for tomorrow:

R4 11260
MP 11142
R3 11023
MP 10905
R2 10786
MP 10712
R1 10638
MP 10594
PP 10549 Pivot Point
MP 10475
S1 10401
MP 10357
S2 10312
MP 10194
S3 10075
MP 9957
S4 9838

NASDAQ Emini NQ Emini - NQM10

The NQ June Emini high for the day on Tuesday was 1932, stopping squarely on our R1(1931.83) number posted last night before pulling back. The low of the session was 1876.75, bouncing back up to the close of 1888, losing -25.50 from the previous close.

NQ Emini June support and resistance levels and pivot point for tomorrow.

R4 2064.67
MP 2037.34
R3 2009.42
MP 1981.79
R2 1954.17
MP 1937.63
R1 1921.08
MP 1910
PP 1898.92 Pivot Point
MP 1882.38
S1 1865.83
MP 1854.75
S2 1843.67
MP 1816.04
S3 1788.42
MP 1760.79
S4 1733.17

Russell 2000 Emini Trading Recap - RJM10

The Emini Russell 2000 June contract topped out in Tuesday’s session at 706.60 just shy of the R1 level(707.67). The low of the day was printed at 677.50, two points below the S1 level(679.27) posted last night. The RJM10 closed the session at 683, down -12.10 from Monday’s close.

The Russell Emini June contract support and resistance levels are as follows:

R4 776.33
MP 761.78
R3 747.23
MP 732.68
R2 718.13
MP 709.35
R1 700.57
MP 694.80
PP 689.03 Pivot Point
MP 680.25
S1 671.47
MP 665.70
S2 659.93
MP 645.38
S3 630.83
MP 616.28
S4 601.73

Emini Trading Economic News For Wednesday, May 19th

Core CPI 8:30 EST
Crude Inventories 10:30 EST
FOMC Minutes 2:00 EST

Yahoo Economic Calendar

Market Mostly Flat And Even On The Day After Morning Sell-Off

2010-05-18T04:03:00.001-05:00

The market lost over 1% today before turning up with a modest gain on the indices. Sellers came out in full force during the early part of the daily session taking most of the S&P 500 with it before rebounding. The energy sector saw the worst of the selling brought on by weakness in oil prices. This post is going out late which gives us the opportunity to report the over-night emini futures market is trending slightly upward.

S&P 500 ES Emini Trading Recap - ESM10

The ES emini June contract sold off and printed the low of the day(1112.75) right at our midpoint level posted previously at 1111.63 before turning upward. However, the ES printed the high of the day at 1140.25, less than a point above our pivot point of 1139.50 closing the day at 1134.50.

S&P Emini support and resistance levels are listed below for tomorrow’s session.

R4 1211.67
MP 1197.92
R3 1184.17
MP 1170.42
R2 1156.67
MP 1151.13
R1 1145.58
MP 1137.38
PP 1129.17 Pivot Point
MP 1123.63
S1 1118.08
MP 1109.88
S2 1101.67
MP 1087.92
S3 1074.17
MP 1060.42
S4 1046.67

Dow YM Emini Trading Recap - YMM10

The YM emini printed a high today(10641) just four points above the posted pivot point of 10637, tracking along with the ES. Putting in a low of 10411 in the at the midpoint level between support 1 and support 2 closing the day at 10599, down -10 points from Friday’s close.

Below are tomorrows support and resistance YM emini levels for tomorrow:

R4 11240
MP 11125
R3 11010
MP 10895
R2 10780
MP 10735
R1 10689
MP 10620
PP 10550 Pivot Point
MP 10505
S1 10459
MP 10390
S2 10320
MP 10205
S3 10090
MP 9975
S4 9860

NASDAQ NQ Emini Recap - NQM10

The NQ June Emini put in a high today of 1919.50, clearing the NQ pivot point(1914.42) by 5 points before closing the day at 1913.50 a point below the PP. The low of the day was 1870.50, stopping right around the midpoint level between S1 and S2, just as the ES and YM eminis.

NQ Emini June support and resistance levels and pivot point for tomorrow.

R4 2048.17
MP 2023.67
R3 1999.17
MP 1974.67
R2 1950.17
MP 1941
R1 1931.83
MP 1916.50
PP 1901.17 Pivot Point
MP 1892
S1 1882.83
MP 1867.50
S2 1852.17
MP 1827.67
S3 1803.17
MP 1778.67
S4 1754.17

Russell 2000 Emini Trading Recap - RJM10

The Russell Emini printed today’s high of 704.40 right on the midpoint level of 704 between the PP and resistance one. The low came in at 676, the exact midpoint level posted the night before between S1 and S2. The RJ emini closed the session at 695.10, down -.60 from Friday’s closing number.

Russell emini support and resistance levels are posted below.

R4 773.03
MP 762.83
R3 748.63
MP 734.43
R2 720.23
MP 713.95
R1 707.67
MP 699.75
PP 691.83 Pivot Point
MP 685.55
S1 679.27
MP 671.35
S2 663.43
MP 649.23
S3 635.03
MP 620.83
S4 606.63

Emini Trading Important Scheduled Economic News

Building Permits 8:30 EST
Core PPI 8:30 EST
Housing Starts 8:30 EST

Economic Calendar

Emini Futures And Stocks Give Back Some Of Their Gains Friday

2010-05-16T16:17:00.001-05:00

After an impressive gain early in the week brought on by the news the International Monetary Fund and the European Union announced a plan support debt ridden countries within the EU, the indexes pulled back Friday, giving back some of the gains earlier in the week. Although the one day surge was one of the best the market has seen in years, stocks sold off Friday as investors mulled over concerns of how quickly and easily the money can be distributed to the countries in need.

S&P 500 Emini Trading Recap - ESM10

Tomorrow’s S&P Emini pivot point support and resistance levels are as follows:

R4 1246.75
MP 1228.88
R3 1211
MP 1193.13
R2 1175.25
MP 1165.25
R1 1155.25
MP 1147.38
PP 1139.50 Pivot Point
MP 1129.50
S1 1119.50
MP 1111.63
S2 1103.75
MP 1085.88
S3 1068
MP 1050.13
S4 1032.25

Dow Emini Trading Recap - YMM10

Below are tomorrows support and resistance Dow emini pivot points:

R4 11495
MP 11352
R3 11209
MP 11066
R2 10923
MP 10845
R1 10766
MP 10702
PP 10637 Pivot Point
MP 10559
S1 10480
MP 10416
S2 10351
MP 10208
S3 10065
MP 9922
S4 9779

NASDAQ Emini Recap - NQM10

Following is a list of tomorrows NQ Emini June support and resistance levels and pivot point.

R4 2116.92
MP 2083.17
R3 2049.42
MP 2015.67
R2 1981.92
MP 1963.88
R1 1945.83
MP 1930.13
PP 1914.42 Pivot Point
MP 1896.38
S1 1878.33
MP 1862.63
S2 1846.92
MP 1813.17
S3 1779.42
MP 1745.67
S4 1711.92

Russell 2000 Emini Trading Recap - RJM10

Listed below is the next days Russell emini support and resistance levels and pivot point.

R4 780.37
MP 766.57
R3 752.77
MP 738.97
R2 725.17
MP 717.80
R1 710.43
MP 704
PP 697.57 Pivot Point
MP 690.20
S1 682.83
MP 676.40
S2 669.97
MP 656.17
S3 642.37
MP 628.57
S4 614.77

Important Scheduled Economic News For Emini Traders

Empire State Mfg. Survey 8:30 EST
Treasury International Capital 9:00 EST
Housing Market Index 1:00 EST

More Gains And Something Is Amiss With S&P Emini Futures

2010-05-13T06:42:00.003-05:00

NASDAQ’s OMX Group, Inc’s executive vice president, Eric Noll said yesterday that heavy trading in the S&P 500’s future index coupled with date communication errors between the electronic exchanges were part of the reason for the free fall in the markets last week. In a prepared statement for congress, Mr. Noll there were data communication issues between NASDAQ, Bats Global Markets and the Chicago Board of Options Exchange during the market fall. Citing unusual trading activity on the 6th of May by a merger of unusual events outside the equities markets. What these events my be, we still don’t know. We’ll have to wait for this to be determined. Read more..

Turning to toward market action today, emini traders were pleasantly surprised with a up market today. The Dow closed up +149 points today anchored by good economic news out of the United States and Europe, reassuring market players the global recovery is continuing. News out of the Commerce Department revealed March exports rose to their highest levels since the market collapse in 2008.

S&P 500 Emini Trading Recap - ESM10

The ES Emini June contract closed up today +17.50 points, closing at 1169.75 just above the R1 level in our posted numbers last night. Hitting a intraday low of 1141, the futures contract never reached the support level one of 1138.75 since the market increased it’s gains from earlier in the week. Commerce Department news helped stimulate further gains.

Tomorrow’s S&P Emini pivot point support and resistance levels are as follows:

R4 1251.42
MP 1236.29
R3 1221.17
MP 1206.04
R2 1190.92
MP 1185.63
R1 1180.33
MP 1170.50
PP 1160.67 Pivot Point
MP 1155.38
S1 1150.08
MP 1140.25
S2 1130.42
MP 1115.29
S3 1100.17
MP 1085.04
S4 1069.92

Dow Emini Trading Recap - YMM10

The YM June contract traded right up to the mid-point level (10883) in our numbers posted last night between R1 and R2 marking the days high of 10882. The days low of 10615 stopped 8 points short of reaching support level one in our posted numbers. Closing the days session at 10876, the YM Dow Emini posted a gain of +167 points today.

Below are tomorrows support and resistance Dow emini pivot points:

R4 11592
MP 11458.50
R3 11325
MP 11191.50
R2 11058
MP 11012.50
R1 10967
MP 10879
PP 10791 Pivot Point
MP 10745.50
S1 10700
MP 10612
S2 10524
MP 10390.50
S3 10257
MP 10123.50
S4 9990

NASDAQ Emini Recap - NQM10

The NQ June contract reached the mid-point level (1975.13) between R2 and R1, printing the days high of 1976.25 in today’s NASDAQ emini trading. The low stopped six points short of support one (1911) in the posted numbers last night at 1917. Closing the day up 37.50 points, the session ended at 1972.75

Following is a list of tomorrows NQ Emini June support and resistance levels and pivot point.

R4 2133.08
MP 2103.46
R3 2073.83
MP 2044.21
R2 2014.58
MP 2004.13
R1 1993.67
MP 1974.50
PP 1955.33 Pivot Point
MP 1944.88
S1 1934.42
MP 1915.25
S2 1896.08
MP 1866.46
S3 1836.83
MP 1807.21
S4 1777.58

Russell 2000 Emini Trading Recap - RJM10

The Russell Emini June contract printed a high today of 715.70, just shy of the R2 level in our pivot point levels posted previously. Dipping just below the pivot point of 690.47, the low for the session was 685 before rebounding with a total gain today of 21.50 points running in tandem with the rest of the emini futures markets.

Listed below is the next days Russell emini support and resistance levels and pivot point.

R4 796.87
MP 781.52
R3 766.17
MP 750.82
R2 735.47
MP 730
R1 724.53
MP 714.65
PP 704.77 Pivot Point
MP 699.30
S1 693.83
MP 683.95
S2 674.07
MP 658.72
S3 643.37
MP 628.02
S4 612.67

Important Scheduled Economic News For Emini Traders

Continuing Claims 8:30 EST
Export Prices 8:30 EST
Import Prices 8:30 EST
Initial Claims 8:30 EST

Economic Calender

Gold Almost Reaches Record High - Emini Trading Levels Update

2010-05-11T19:37:00.002-05:00

It seems the big rally yesterday brought on by the announcement Monday that the EU and the IMF would bailout struggling European countries was not enough stop second guessing on the part of investors. Gold prices surged up Tuesday, almost setting a record high. Gold traded in the session as high as $1,225.20 an ounce, just short of the record, $1227.50 set late last year. European debt concerns, especially Greece, are weighing heavy on investors who are responding by seeking safe havens. Although gold prices rose to almost record highs today, the overall cash markets traded in a tight range for most of the day. The Dow fell 37 points after Monday’s 405 point surge, holding on to gains brought on by news out of Europe.

S&P 500 Emini Recap - ESM10

The ES S&P Emini June contract traded a high today of just two points below resistance level one topping out at 1169. Trading in a tight range the ES Emini closed the day down -4.25 at 1152.25, holding almost all the gains made yesterday on the 49 point move up. The printed low on the session was 1140.50 with a volume of 3,640,288 ES contracts traded.

Tomorrow’s S&P Emini pivot point support and resistance levels are as follows:

R4 1239.42
MP 1225.17
R3 1210.92
MP 1196.67
R2 1182.42
MP 1174.88
R1 1167.33
MP 1160.63
PP 1153.92 Pivot Point
MP 1146.38
S1 1138.83
MP 1132.13
S2 1125.42
MP 1111.17
S3 1096.92
MP 1082.67
S4 1068.42

Dow Emini Recap - YMM10

The YM Dow Emini June contract traded above the pivot point (10662)for most of the day only dipping below it to print the low of the day at 10622. The YM held it’s gains from the huge day yesterday, only giving back -32 points, closing the day at 10709. The high of the day was 10840, stopping short of resistance level one at 10873.

Below are tomorrows support and resistance Dow emini pivot points:

R4 11377
MP 11268
R3 11159
MP 11050
R2 10941
MP 10883
R1 10825
MP 10774
PP 10723 Pivot Point
MP 10665
S1 10607
MP 10556
S2 10505
MP 10396
S3 10287
MP 10178
S4 10069

NASDAQ Emini Recap - NQM10

The NQ NASDAQ Emini June contract traded in a tight range along with the other emini futures, maintaining the gains made the previous day of +91 points. The NQ emini gave back only 4.25 points in today’s trading. Resistance level one of 1963.50 is where the June printed it’s high of the day at 1965 before pulling back and closing at 1935.25, between the pivot point and resistance level one.

Following is a list of tomorrows NQ Emini June support and resistance levels and pivot point.

R4 2088.42
MP 2063.42
R3 2038.42
MP 2013.42
R2 1988.42
MP 1975.13
R1 1961.83
MP 1950.13
PP 1938.42 Pivot Point
MP 1925.13
S1 1911.83
MP 1900.13
S2 1888.42
MP 1863.42
S3 1838.42
MP 1813.42
S4 1788.42

Russell 2000 Emini Recap - RJM10

The same goes for the Russell Emini June contract as the above. The RJM10 closed squarely on the midpoint level of 689.70 at 690.60 between resistance level one (700.50) and the Russell emini pivot point (678.90). Holding on to it’s gains as well from previous days trading, it closed up +2.50 points.

Listed below is the next days Russell emini support and resistance levels and pivot point.

R4 771.47
MP 757.97
R3 744.47
MP 730.97
R2 717.47
MP 710.75
R1 704.03
MP 697.25
PP 690.47 Pivot Point
MP 683.75
S1 677.03
MP 670.25
S2 663.47
MP 649.97
S3 636.47
MP 622.97
S4 609.47

Important Scheduled Economic News For Emini Traders

Trade Balance 8:30 EST
Crude Inventories 10:30 EST
Treasury Budget 2:00 EST

Economic Calander

Emini Trading Recap - Big News Out Of Europe Sends The Market Flying

2010-05-10T20:02:00.002-05:00

The markets rocketed up today as traders and investors reacted to the news that the European Union and the International Monetary Fund approved a rescue plan amounting to almost $1 trillion in a fund to help struggling European nations deal with mounting debt.

S&P 500 Emini Recap - ESM10

The ES emini contract closed Friday’s session at 1,107.00 and opened this week at 1,125.25, six points below resistance level one at 1131. The overnight markets and early morning pre-market pushed the ES up to the days high before the cash market opened topping out at 1162. The S&P Emini futures closed the daily session at 1156.50, up 49.50 points on the day.

Tomorrow’s pivot point support and resistance levels are as follows:

R4 1268.25
MP 12446
R3 1227.75
MP 1207.50
R2 1187.25
MP 1179.50
R1 1171.75
MP 1159.25
PP 1146.75 Pivot Point
MP 1139
S1 1131.25
MP 1118.75
S2 1106.25
MP 1085.00
S3 1065.75
MP 1045.50
S4 1025.25

Dow Emini Recap - YMM10

The Dow Emini June contract end last week on Friday, down 122 points. Opening today’s session at 10465 reaching a intraday high of 10794 reacting favorably on the news out of the European Union. The YM closed the session up +406 points!! If you were long the market today trading YM eminis, congratulations!

R4 11691
MP 11519.50
R3 11348
MP 11176.50
R2 11005
MP 10939
R1 10873
MP 10767.50
PP 10662 Pivot Point
MP 10596
S1 10530
MP 10424.50
S2 10319
MP 10147.50
S3 9976
MP 9804.50
S4 9633

NASDAQ Emini Recap - NQM10

The NASDAQ Emini June contract closed last Friday down -37.50 points after a rough week across all financial markets. Today the NQ opened at 1873.75 exploding to a high on the day of 1942. With investors and traders bringing their fear under control due to the news out of Europe, stock traders and investors climbed on board for the ride closing up +91 points. Tomorrows support and resistance numbers for the NASDAQ Emini June contract are listed below.

R4 2127.25
MP 2092.25
R3 2057.50
MP 2022.50
R2 1987.75
MP 1975.50
R1 1963.50
MP 1940.75
PP 1918 Pivot Point
MP 1905.75
S1 1893.75
MP 1871
S2 1848.25
MP 1813.25
S3 1778.50
MP 1743.50
S4 1708.75

Russell 2000 Emini Recap - RJM10

The Russell Emini June contract traded noticeably less contracts than normal today. However, this didn’t keep the Russell Emini from following along with the rest of the market, closing up +37 points from last Friday’s close of 651.60. For those of you that are not familiar with the Russell Emini, it is an excellent futures contract to trade and you should look into employing this lesser know emini. Tuesday’s support and resistance pivot point levels are below.

R4 778.80
MP 762.15
R3 745.50
MP 728.85
R2 712.20
MP 706.35
R1 700.50
MP 689.70
PP 678.90 Pivot Point
MP 673.05
S1 667.20
MP 656.40
S2 645.60
MP 628.95
S3 612.30
MP 595.65
S4 579

Scheduled economic news events are lite tomorrow as only Wholesale Inventories is the only scheduled news to be released at 10 AM EST.

Emini Trading Tips - Three That Are Important

2010-03-19T07:30:00.008-05:00

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 emini futures trader.

Emini day trading offers something other forms of trading does not…short term profits, everyday. Everyday for those willing to become a student of the market with a commitment to learning how the market trades and a constant focus on learning to trade well. 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. 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 emini 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 emini 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 emini day trader since the goal is short term profits. Nothing could be further from the truth. So emini trading tip number two is to always trade with the prevailing trend.

Emini 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!

Emini trading is difficult enough without a proper emini 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 emini trading tips and you could be well on your way to being a successful emini futures trader.

Scalping Futures Using Emini Contracts

2010-03-08T00:40:00.010-06:00

Although as traders we use various methods to make our money from the markets, scalping futures using emini contracts is one method experienced traders use frequently. If you're new to the index futures market, in this article we will explain how using this method can reduce your exposure while allowing you to reach your trading goals and increase your confidence and grow as a futures trader. By nature, trades executed using the scalping method are designed to get the trader in and out of the market quickly. Usually with no more than a few minutes elapsing between entry and exit with the trader pocketing a small profit. Since the time frame is small, exposure to the market is significantly reduced thereby protecting precious capital.

Our Recommended Emini Scalping System

With traditional emini day trading, the trader is focused on a larger time frame, ideally entering a trade and riding the current days trend, banking larger profits than the trader utilizing a emini scalping method. However, the day trader risk more exposure to market forces by holding a position for longer periods. Scalping emini contracts is a much more rapid type of trading with traders focused more on smaller movements in market action. Accumulating profits with each trade, the trader will execute several times more trades throughout the daily session than those using a futures day trading methodology. Since this type of trading is faster than traditional emini day trading, the scalp trader must be more focused on his trading rules and sticking to his money management system. Although experienced traders utilize scalping methods, this form of trading lends itself very well to the new index futures trader. Day trading methods normally allow for more liberal stop losses before exiting a losing trade. However, scalp trading by design, requires the position be exited quickly should the trade turn south minimizing trading losses.

Scalping futures is not unlike a submarine using stealth to stalk and attack an opposing target. The emini contract scalper will only execute trades when the odds are in his favor by employing tactics and strategies which exploit favorable market conditions. In most cases, other traders will never know he's there, quickly entering and exiting the market, waiting on the next profitable set-up. Although many believe scalp trading to be difficult, in most cases a simple strategy or one tactic can be used over and over. The futures market offers many opportunities throughout the daily sessions for a skilled emini scalper to enter many trades everyday, making it possible for him to make as much profit as a traditional emini day trader.

Emini scalping or day traders never hold positions over night, going home with a flat account with no exposure to the news and geopolitical events which can affect the overnight futures markets. Hence the scalper sleeps worry free each night. In fact, the scalper seldom if ever concerns himself with daily financial reports or anything that can affect the markets, relying only on the technical attributes of the futures markets.

Certain conditions need to be present within the emini index futures market for successful scalp trading tactics. Fortunately, these conditions are almost always present in the daily futures trading sessions. Liquidity is one characteristic of the futures market which is always present. Thousands of emini contracts are bought and sold each day without wild price swings making them extremely attractive to short term traders. Volatility is another condition which is needed for scalpers to trade successfully. The index futures market can be highly volatile in some instances like when an FOMC announcement is released other financial news hits the news wires. At times such as these, the wise trader stands aside and lets the market sort out the news before considering a new trade. However, the emini futures markets has enough volatility on normal trading days which allow the scalp trader to enter and exit the market multiple times everyday.

The scalp trader learns to exploit these characteristics of the futures market and profit. By exercising discipline and obeying the rules of their trading system such as exiting the market when stop losses are hit and not swinging for the fences and focusing on small profits, scalping futures with emini contracts is an excellent way to profit from the financial markets.

Emini Pivot Points - A Powerful Emini Simple Indicator

2010-03-03T17:55:00.015-06:00

Simplicity should be the goal of all index futures traders when it comes to their trading methodology. Uncomplicated methods allow the trader to watch market action without the level of stress associated with a complex system, freeing them to concentrate on potential trade set-ups. Emini pivot points are one such emini simple indicator many experienced traders employ exclusively in the index futures markets with excellent results.

Learn how to trade Emini Futures - 89.9% Success Rate!

A powerful technical analysis tool, pivot points have proven to be effective across all financial markets no matter what financial instrument is traded whether emini contracts, stocks and even currencies. Many trading services provide futures traders daily pivot points along with import levels of support and resistance before the market opens the following day. These chart setting services are affordable and an excellent tool for people choosing to trade using pivot points in conjunction with support and resistance levels.

If you are unfamiliar with pivot points and using them as emini simple indicator, follow along and learn how they are implemented by futures traders to effectively trade the ES emini, YM emini and NQ emini futures contracts. If you've been around the financial market for any length of time, you've heard of leading and lagging indicators. Pivot points are commonly referred to as a leading inductor since the area of the pivot point is established before the market opens. A pivot is defined as point on which something turns. In the emini trading world, this means a change of short term trend.

For example, if the market opened down and continued down throughout the morning session, the trend is down so far for the day. As the market continues down and bounces off an area of support and reverses, the trend is still considered down until is reaches the pivot point for the day. Once price action pushes through the pivot point, the trend has changed to upwards. Many traders use these pre-defined areas, both pivot points and levels of support and resistance, to initiate trades.

If you take pivots points and levels of support and resistance numbers and draw lines on your chart, odds are they will line up with the areas where changes of trend, bounces and pullbacks have occurred in the past or very near the area. Some traders only use a time and sales screen with these levels written on a sheet of paper without using a chart. A testament to the power of pivot points and levels of support and resistance when used properly.

Because they are a leading emini simple indicator, the trader knows in advance what might occur should price action reach one of these levels. As we mentioned above, simplicity is what we should look for in a emini indicator and the mathematical calculation to determine pivots points and other levels is a simple formula. By using numbers from the previous days session, we can determine the possible range of the following day. By using the previous days low of the day, the high of the day and the closing price and divide by three, we can easily enough generate the range for the next trading session.

If you are not sure what is meant by a range, it is simply the low and high of a period of time. In this case the high would be how far the market went as bulls pushed the market up and the low would be how low sellers sold the market for the session. The range is a complete picture of what took place during the session. Within this range, there will be evidence of struggle where bulls and bears fought over lines of support and resistance with the pivot point being where the trend changed from up to down or down to up. The pivot point is an indicator of market sentiment and the mood of emini trading participants. Most experienced traders advocate going long if the market is above the pivot point and short selling the market if it is below the pivot point line.

At first, emini pivot points may seem complicated. However once you begin using them, you will soon realize how easy they are to apply as a emini simple indicator of current market direction. Many experienced traders have used them to such levels of success, they would not even consider using any other indicator to trade the index futures market. Pivot points can be used with all of the index futures including the ES emini, YM emini, NQ Emini and the Russell emini with equal results.

Emini Future Trading Across Higher Time Frames

2010-02-24T17:40:00.002-06:00

You've decided that emini future trading is how you want to participate in the financial markets and the emini contract is your chosen trading instrument. Great! Index futures are a top notch way to make a good living in the markets but you must first decide on a strategy. Part of your strategy will be choosing a time frame in which to trade. Large profits are the goal of every emini trader and this can surely be accomplished if the trader exercises commitment and discipline. When deciding upon a time frame, the common approach is to choose one that is best suited to the trader's risk tolerance and trading goals. However, regardless of what time frame you choose to focus on, by analyzing the futures market across numerous time frames you can enhance your winning percentages.

A frequent error common to new traders is executing a trade while watching market action in a single time frame. All traders in every financial market, no matter if they are trading futures, stocks, options or currencies have an ideal time frame they favor. Emini scalping enthusiast could benefit by assessing market conditions with the 5 minute chart in tandem with the one minute chart he favors. One could apply the old saying, "He can't see the forest because of the trees", in this instance. Higher chart levels can enhance your view and provide information you may not be seeing at lower level time frames. A emini day trader that favors the 15 minute chart should check out the 30 minute and hourly charts as well to possibly improve his view of market internals.

By analyzing the market across at least two higher time frames than the one you favor we can better check for confirmation of the move we are anticipating. Essentially, the higher time frames acting as confirmation is a signal we can use before executing a trade which shows the strength of the set up in both your favored and higher time frames. If you are a emini day trader that generally holds a position for extended periods throughout the daily session riding trend for the day using a hourly chart, it is wise to check the daily and weekly time periods as well. The same goes for the emini scalper. If you are using a 3 minute chart, you should be using the five and ten minute charts also. With emini future trading, some people have three different time frames open all at the same time as well as the NYSE TICK and TRIN charts.

However, emini trading systems which are based on simplicity typically are the best systems. Over analyzing can create information overload where too much information can cause hesitation and bad judgment resulting in bad execution. Utilizing more than three higher time frames is more often than not, overkill. Over thinking the set-up presented by the market can make you second guess and miss an opportunity to enter and exit with a profitable trade.

If you are in the habit of trading with one time frame, odds favor your are struggling as an emini trader or you would'nt be reading an article about trading across multiple time frames. Once you start utilizing higher time frames, it will take some trial and error to become comfortable using a different method. However, the results may well be surprising. You can only trade with the information you have and with a single time frame you do not have all the information you need to increase your winning percentages. You are more then likely not seeing many opportunities when they present themselves through a one-dimensional view. A three dimensional view is far superior since it provides a wider scope of the market, helping you to react when opportunity is present. Emini future trading using higher time frames in conjunction with the time you favor can only enhance your emini trading.

The Best Emini Trading System - Selecting One

2010-02-23T18:21:00.007-06:00

Welcome to the Emini Trading Blog where we do our best to provide you with a guide as an index futures trader. Are you searching for the best emini trading system? If so this article can help point you in the right direction in choosing a system or methodology which best fits your style of trading. A trading system can be as simple or as complex as you wish, however, simple systems tend to do better since they eliminate information overload. If we take in too much information, the decision process becomes difficult which manifest into bad execution or hesitation causing losses. So it is best to exercise some degree of caution when choosing a trading methodology. Simplicity is ideal when we are searching for the best emini trading system to meet our needs.

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If simplicity is the goal, system design is the criteria we should look for first. Is the design of the system built with user friendliness in mind? Nothing is more frustrating than watching the market and dealing with a difficult system. It should flow easily between the different aspects that make up a system. Your futures broker should provide fast execution when your system reveals a trade set-up and work well with your charting software or time and sales feeds. Data feeds should be in real-time which require dependable Internet connections from a reputable Internet Service Provider. A back-up Internet connection is recommended should your ISP fail. If you've ever been in a trade and lose your connection, frantic can best describe the feeling a trader experiences when his ISP goes down. A back up connection is a must since major losses can be the result.

The best emini trading system, as you can see is not just a single module or one size fits all. Interaction between various tools is a requirement as outlined above. Trading methodology is the heart of the system. Choosing a time frame to trade will be part of your system. Traditionally, emini day trading is the method most often associated with index futures trading, with many traders choosing emini scalping as their approach to the futures market. Choosing to take small profits many times throughout the day while the daily cash market is open. Others will open positions and trade the overnight sessions when trading is much slower. Some use a combination of both scalp trading and classic day trading throughout the day.

The use of traditional Japanese candlestick charts are used by most emini index traders, while some experienced traders will use only a time and sales screen. Others use a combination of charts, indicators and oscillators to determine when to enter and exit the futures market. Pivot points around areas of strong/minor support and resistance is another often used methodology and is very productive. As you can see, the choices are varied and emini trading is available to just about any methodology favored by the individual trader.

Having the best emini trading system that fits your personality and trading style is what we are after as futures traders. The market is complex no doubt. It is fickle and ruled entirely by the emotions of greed and fear which creates a paradox. While we see the evidence of emotion every day in the market, we seek out a trading method which eliminates the emotional aspect of trading. Our ideal is to react only to the conditions presented by the market in technical terms, not through fear or greed. Your system should be of such design that you automatically submit trades based only on technical analysis, without hesitation. Hesitation is the result of emotion which more often than not translates into bad execution and loss. A good trading system will assist you in determining when to place trades based on market dynamics and technical conditions, not financial news reports, crowd mentality or geopolitical events.

Is there a perfect index futures trading system? No. Is there a emini trading system that will help you become a proficient emini trader? Absolutely! Odds are if you are reading this, you have some experience in the financial markets, most likely as a stock day trader, swing trader or just a long term investor. Although if you're a long term investor, it is recommended you first read up on technical analysis since you are more likely coming from a fundamental background rather than a technical analysis background. Short term traders live and die by technical analysis and some education in this area is important before venturing into emini trading.

As a trader, you can build your own system or you can choose to adopt one of the better emini trading systems available. However you choose to proceed, finding the best emini trading system will boil down to personal choice and what best suits your trading needs and goals.

Trading Eminis - How To Win When You Are A New Index Futures Trader

2010-02-23T06:13:00.006-06:00

Trading eminis is a vocation which has been proven time and again that just about anyone can learn to be profitable. However, there is one underlying fact that new traders fail to acknowledge when they first begin. Almost all will lose their money initially. Why? Because most will jump into the index futures markets without the necessary knowledge to trade successfully.

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Most will have some background and some success at trading stocks and learn about the futures markets as stock traders or investors. Emini index futures have the liquidity and movement each day which entice these new traders since stocks may be stagnant and range bound for days on end. Because the emini futures have the ability to generate profits everyday making them the ideal day trading instrument and the number one reason novice traders jump in unprepared.

Most realize in order to be successful they will need to quickly get up to speed and do seek out basic information about the emini futures markets. For example they may acquire information to determine which emini contract they prefer to trade such as the DOW YM Emini or the S&P 500 ES emini contract. Or they may search the Internet for a live emini trading room and trade alongside as the moderator calls out trades. Of course most of these live trading rooms charge hundreds of dollars in monthly subscription fees, placing a strain on the new trader's funding sources with most blowing out their brokerage account within the first month or two, quickly leaving the futures markets in frustration.

Trading eminis profitably takes work on the part of the new trader. Being impatient is probably the largest factor attributed to why most new traders fail, never to return to the index futures markets. Sure, they know huge gains can be made on a daily basis trading eminis, but won't take the necessary time to understand and learn the dynamics of this fascinating market. Knowledge is key to becoming successful at emini trading.
Even more importantly, simple emini strategies are usually the ones that work the best far more than a tedious and complex system. The good news is, a simple emini trading system can be learned and traded successfully in a matter of a few weeks, providing the new traders approaches with the right frame of mind.

Most new traders are not unlike small children when Christmas is approaching. Visions of presents under the tree on Christmas morning is what dominates the minds of small children at Christmas time each year. New emini traders have visions of huge gains and piles of money which distract them from what they should be focusing on...learning to trade well. Trading well has been covered many times here on the emini trading blog for one very important reason - profits are a by-product of trading well.

However, trading well does not begin with adopting a emini system or strategy, it begins within the mind of the emini futures trader. The novice trader must first adopt a plan for approaching the market and it begins first with discipline. What do we mean when we talk about discipline where emini trading is concerned? It's very easy when we first start out as index future traders to easily be swayed by a moving market. For example, say you are using pivot points or levels of major and minor support or resistance. During the afternoon session when the New York lunch comes to an end as all of the major players return the market starts to show some life after the lunchtime blues. The market at times can take off quickly and blow through a pivot point or level and the new trader hesitates, not entering the market as planned. An undisciplined trader will many times force a trade out of frustration and enter the market right when the NYSE TICK is at an extreme and the move is reaching exhaustion, finding himself holding a position at the high of the day as the market recedes as sellers begin shorting the pullback.

The novice trader will then either exit quickly as excitement turns to fear or further increase his loss by holding the position hoping the market will return to the high of the day before the market closes. The point here is, the undisciplined trader forced a trade because he failed to enter the market based on his trading plan, let emotion take over when he saw the market going up and couldn't restrain himself thinking of the cash he could be making. The disciplined trader would have stuck to his trading plan and stayed on the sidelines if he missed his planned entry point. He understands the market will always be there and another opportunity is always right around the corner, especially with the amount of liquidity provided in the emini futures market.

The point is,,,,trade as a disciplined trader and trading eminis can be as profitable as you need it to be.

Emini Trading Platforms - How To Choose One

2010-02-17T06:14:00.014-06:00

Emini trading online is much easier than when the mini sized contracts were first introduced a decade ago due to the advancement of trading technology available over the Internet. With so much technology available to index future traders it is understandable people experience difficulty when choosing a emini trading platform. With so many to choose from, as futures traders, we must first determine what are the characteristics that make up a good, usable trading platform.

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When we purchase a new automobile, most people usually take the car for a test drive. The same goes for a emini trading platform. The vendor should provide a demo for you to use for a brief period of time to decide if the software is right for you, your trading plan and your personality. Not all platforms are created equal and a demo can provide invaluable information to make your choice. So first on our check list is does the developer of the platform provide a demo for you "test drive"? Make sure the demo provides the data to track the S&P emini futures, Dow emini futures and Nasdaq emini futures.

Several other factors should be considered when determining which emini trading platform is best suited for your trading purposes. Choosing the wrong platform can increase the odds of hindering trading style and failing to profit which translate into bad money management, in this case capital preservation. By building your checklist of attributes needed to fit your emini trading goals and style, you can further enhance your chances of selecting a emini platform which helps you to be successful.

Although there are several emini platforms available to future traders, one underlying attribute required is ease of use. Emini traders want to trade the markets and spend their time becoming a proficient student of the futures markets, not spending a their time learning how to manage a complicated trading platform. User friendliness without confusing add on features which require a background in programming is desirable. There are two types of emini trading platforms available. One is the stand alone module which resides on the trader's hard drive and the other is a web based online platform. Accessibility is the strong suit of the web-based online platform. Wherever the trader can connect to the Internet, he can be up an running, trading the market. A stand alone module based platform requires the trader to be in front of the computer in which the software based program resides on the hard drive. In this situation, it depends mainly on the lifestyle of the individual emini trader. For those which will be trading from the same location everyday, a stand alone platform is more than adequate. For those traders that are on the go and travel, an online platform is ideal. Also, online based programs eliminate the worry of computer crashes since the trader can easily access the market through another computer.

One very important aspect of a emini trading platform is data feeds. It does not matter if you purchase the best platform on the market, it will be useless without reliable real-time market feeds. Real-time data is a crucial component of any emini trading platform and reliable vendors providing data feeds are a must. It cannot be stressed enough the importance of accurate real-time market information. If a trader does not have confidence in the information he is receiving, it will result in poorly executed trades which translates into losses.

Very often when traders are going through the selection process of determining which emini trading platform to use, they fail to consider customer service, including technical support. Unlike the cash markets which open with the morning bell and close with the sounding of the closing bell, the index futures markets continue to trade after a brief break. With a market which trades almost entirely around the clock, it is essential that the trader have access to customer support should a problem occur with the emini trading platform. If customer support is not available after normal business hours, although the futures market is open, the possibility of losing money is very real if the problem cannot be resolved quickly. Failing to consider the importance of customer and technical support when choosing a emini trading platform is a recipe for disaster.

In conclusion, we have discussed some of the most important components which should be considered when choosing a emini trading platform. Use the demo provided by vendors and spend enough time learning how they work and determine of they are a fit with your trading style. Become familiar with the different modules and their ease of use and understanding, or lack there of. A emini trading system is so important to the success of a trader that sufficient time should be spent making sure the system chosen is right for you. There are many emini trading systems available and with enough research, you will find the one that best provides for your emini trading needs.

Emini Trading Alerts For Beginners

2010-02-14T20:19:00.010-06:00

As a new trader learns how to use emini trading signals, he will put himself in a place to execute more profitable trades without the need to sift through tons of financial information every market session. First, it is important to understand what is meant by a emini trading alert or emini trading signal. Rather than manually reading through trading charts, daily economic reports and a myriad of other financial data, emini trading systems are available which analyze data for the trader. The system analyze the data turning it into relevant information the trader can use to execute high percentage trades by issuing signals which alert the trader when possible trade set-ups are on the horizon.

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What makes a mechanical emini trading system great is they provide information both for possible trade entry and elimination of irrelevant information thrown at a trader each day. To be sure, one of the first mistakes a new emini trader makes is failing to spend some time learning the dynamics of the index futures market. Many traders new to the market begin emini trading impulsively, focused on making a ton of money rather than learning to trade proficiently. Profits are a by-product of learning to trade well and proficiently. This also applies to the use of emini signals and emini alerts. New traders fail to take the necessary time to learn a mechanical trading system and don't realize until it is too late that all signals are not created equal. With the usually happening after the rookie has executed a few bad trades and lost money. However, by understanding and employing index futures trading alerts, you can greatly enhance chances of executing winning trades far more than broken, losing trades. This is the power of this kind of system.

Why Emini Trading Using Eimni Trading Alerts

Emini trading is, without doubt, one of the top money making ventures available to just about anyone with a drive to succeed. Every year, more and more people come to the futures markets hoping to make it big and profit trading the S&P 500 emini, Dow YM emini and Nasdaq NQ futures. Unfortunately, too many think emini trading is simplistic and easy when in fact, it is complicated and difficult, especially for those without any market experience. Because of this reason, the Internet has seen an explosion of emini trading alert services, emini charting programs and without a doubt, the proliferation of questionable and expensive emini trading rooms, all preying on those new to the emini index trading market. That being said, there are exceptional services available to inexperienced traders which can quickly get them up to speed, teaching them the skills necessary to become profitable using emini alerts and signals.

Traditionally, traders have utilized a wide variety of charts and indicators to participate in the index future markets. These traditional tools and their use are still relevant and applied daily by experienced traders. But they require an extended learning curve coupled with many trading losses before becoming useful profitably. The implementation of emini trading alerts can greatly reduce the amount of losses associated with a learning curve, common to new emini traders. By relying on these systems designed by experienced index futures traders, accurate buy and sell emini signals will be issued by the system depending on the condition of the market. By using algorithms, emini trading software designed students of the markets can produce better results rather than dependence on archaic traditional methods. Moreover, new emini futures traders can, depending on the provider, utilize a demo or pay for a trial period to determine if the emini alert system fits in within their trading style and personality. Furthermore, by choosing a reputable emini trading system with built in emini alerts is a exceptional way to protect trading capital, the life blood of futures trading, until such time the new trader gains a better understanding of the futures markets. Using a reputable system allows the new trader to gain confidence while also allowing him to trade in a real-time market situation.

Emini Trading - S&P Futures, Dow Futures, NASDAQ Futures Or Russell Futures: Which One To Trade?

2009-08-04T17:24:00.022-05:00

Emini Trading Contracts Outlined

Those new to emini trading often have difficulty determining which index futures contract is the best fit for them. For this reason we are going to outline and profile each emini contract for those who haven’t quite yet grasped the differences between these four very unique trading instruments.

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The S&P Emini futures contract is the most popular and rightly so since not only is it traded exclusively by many, it is also used by stock traders as a strong indicator for daily market direction. Most stock traders will always have a live chart or ticker open on their trading platform displaying real-time feeds of these futures since they are literally the ring in the bull’s nose. Wherever they go, the cash market will follow making the S&P 500 index futures a very important tool for those utilizing short term trading methods in the stock markets.

S&P 500 Futures Contract

The Chicago Mercantile Exchange or CME, introduced the S&P mini sized contract in the 90’s as an alternative to the larger sized S&P futures contract since the original contract became too large for many smaller traders to utilize. The smaller S&P emini contract is one-fifth the size of the larger, original contract and is traded electronically through the Globex system.

The contract up ticks and down ticks in quarter points and is the minimum price movement with each quarter point tick equal to $12.50 with a whole point value of $50. The S&P futures market is highly liquid and is employed by institutional traders for speculation and hedging. It is not uncommon for the mini SP contract to trade as many as ten-thousand shares in the course of one minute to give an example of market depth and the amount of daily volume as well as to underscore their importance as a vital trading indicator and about market sentiment. Trading without one eye on the S&P futures is akin to trading blindfolded.

ES Emini

The symbol for the S&P emini futures contract is ES. Of course this only refers to the basic contract in general terms. Futures contracts are derivatives which means their value is derived from an underlying issue, in this case the S&P 500 cash market. As a derivative, they have expiration dates and cease to hold any value after a set expiry date. Expiry is determined by four different months starting with March, followed by June, September, and December, meaning there are four different contracts within a calander year. Each month has a different letter within the ES emini symbol to identify which month the contract will expire. The identifying letters are as follows:

March = H
June = M
September = U
December = Z

Not only does the ES emini contract symbol contain the month in which it expires, it will also contain in which year it expires. For example, if someone were emini trading an ES contract which will expire in December 2012, the symbol would be ESZ12, which identifies what type of contract (ES) along with what year (09) and month (Z) the contract will expire.

The ES is an excellent futures instrument in which to trade, however it is not the only one by any means. Some traders prefer emini trading on different exchanges than the S&P 500 as we will discover.

NASDAQ Emini Futures Contract

After the introduction of the ES emini S&P 500 futures contract the NASDAQ emini was introduced. Tracking the top 100 stocks on the tech heavy NASDAQ stock exchange, the NASDAQ emini soon become very popular among index futures traders, although never surpassing the popularity of the ES emini. Designated with the symbol NQ, the NASDAQ emini contract also trades in quarter points but is valued differently. Each quarter up tick or down tick is equal to five dollars ($5), with a total up tick or down tick point worth twenty dollars ($20).

The same symbol system applies as the ES as does expiry months. With the NASDAQ emini, if a emini trader were to take a position in the December 2012 contract, the symbol would be NQ12Z. The mini NQ also has excellent liquidity and volume each day allowing emini futures traders several opportunities each day to initiate trades.

DOW Emini Futures Contract

Although the DOW emini contract has not been around quite as long as the ES Emini or the NQ emini, it has however, seen an explosion in popularity among index futures traders. Tracking the Dow Jones Industrials Stock Exchange, the DOW emini futures or YM as it is designated has seen increased volume and liquidity since it’s introduction and has converted many long term ES traders which now trade the YM emini exclusively

YM futures contracts follow the same symbol designations as the ES and NQ as outlined above. A December 2012 Emini contract would be YM12Z identifying the contract type (YM-DOW); expiry year (12); and expiry month (Z-Dec.). Another factor unique to the DOW emini contract unlike the ES or NQ is it does not trade in quarter points, rather it trades in whole points with each up tick or down tick equal to five dollars ($5). Growing in volume and popularity, the YM emini is an excellent choice for all emini futures traders including those new to the futures market seeking an emini education and to test emini strategies.

Russell 2000 Emini Contracts

Although less utilized than the other three contracts for emini trading, the emini Russell contract is still an excellent choice as a trading instrument. The Russell 2000 emini is one-fifth the size of the larger contract with the Russell 2000 tracking 2000 securities on the Russell 3000 stock exchange.

This contract is also uniquely different from the other three in it trades in .10 increments equal to $10 for every .10 up tick or down tick with each whole point equal to one hundred dollars ($100). The symbol for the emini Russell is ER and fit’s the same criteria as the other 3 for identification purposes and expiry. A December 2012 contract would designated as ERZ12. Some emini traders favor the Russell emini contract over all others, claiming this contract trends better than the others and eliminates noise since it tracks many more stocks than the other three index futures contracts.

Emini Strategy

Emini trading is most often utilized as a emini day trading method or emini scalping method and all positions are exited when the bells sounds closing the cash market, although the futures market is open 23 hours daily. Traders employ many different approaches when trading emini contracts. Some rely only on support and resistance numbers in conjunction with pivot points. Others will use simple moving averages and crossover methodologies, while some will utilize classic Japanese candlestick formations in combination with indicators and oscillators such as the Stochastic, MACD or RSI. Whatever method chosen, emini trading lends itself very well to different approaches to the index futures market no matter which emini contract is traded.

As mentioned above, the S&P emini futures should be used as a indictor of market direction even if the trader is utilizing a different index futures contract, since the ES is the ring in the bull’s nose and the market WILL follow their direction. Also, the NYSE TICK is an excellent indictor for determining market internals and sentiment. Newer traders may wish to join a emini trading room to follow along as experience traders call out trades and explain why they enter and exit the market at certain points. An emini trading room is an excellent way to build confidence and skill levels for rookie traders.

Emini trading is an excellent way to profit from the financial markets, however, a commitment to disciple and practicing sound money management principles are a must to successful emini trading.

Good Trading!!

Emini Education Reality Check - Scared Money Never Wins

2009-06-14T09:17:00.009-05:00

Emini Education - The Key To Success

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. Unfortunatley, today could be different and the fledgling trader could finish the day having executed one or two winning trades. 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, discipline and a emini
education.

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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 undercapitalized trading with money they cannot afford to lose. Usually these people are on an emotional rollercoaster 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. The are gamblers hoping a miracle will happen and they will somehow survive long enough to miraculously turn into a successful emini trader. Unfortunatley, 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 emini trading education.

The other type of scared money player are those that cannot accept losses. Unfortunatley these types seldom develop into long term futures traders. Losses are a part of being a successful emini index 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 emini education that will develop skill and discipline in conjunction with a proven trading system, you can successfully trade emini index futures and become one of the select few who win at the game of emini trading.

NASDAQ Emini - Trade The NQ Futures

2009-06-11T05:57:00.021-05:00

The NASDAQ Emini Futures
Emini index futures trading offers several different contracts to trade including the NASDAQ Emini which tracks 100 of the largest companies listed on the tech heavy NASDAQ stock exchange. Introduced in 1997 as a smaller version of the standard futures contract, the NQ as it is called, is one fifth the size of the larger version and traded on the CME Globex Platform.

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Although not as popular as it’s cousin the S&P 500 ES contract, the NQ trades with excellent liquidity and volatility making it an outstanding choice for people utilizing a day trading or scalp trading methodology. The NQ Emini trades in quarter increments or .25 with a minimum price fluctuation of .25 yielding $5. One total point equates to twenty dollars. For example:

If a trader went long the market with one mini NQ contract at 1130 and sold at 1155.50 he would have a profit of $510 with the equation represented as follows: 25.5 points x $20 = $510

All emini index futures contracts have expiration dates with each contract expiring every three months or four times per year. Expiry months are as follows; March, June, September and December with each month assigned a specific letter for it’s expiration month. March is assigned the letter H, June is M, September is U and December is Z.

The future contract will also have the year in which it expires included in its symbol. The symbol identifies what type of emini contract, expiration year and month it will expire. For example: A NASDAQ Emini contract which expires in December of 2012 would be designated by the symbol NQZ12.

Trading The NQ Futures

Since their introduction in 1997, emini futures have grown into a popular financial instrument in which short term traders have chosen to both day trade and scalp trade. Since margin requirements are a great deal less than what is required for the larger contract, popularity is at all time high. Also, a few years ago regulators required a $25,000 minimum on all stock day trading accounts which eliminated many from day trading stocks with most moving over to emini futures trading.

Day Trading The NASDAQ Emini

Day trading is probably the most appealing form of trading approach for the NQ futures contract. Emini futures traders all have their chosen methods and trading systems to trade the mini NQ. Some may only open one trade daily and ride the market all day into the close, while others may initiate multiple trades during the daily session. Some traders utilize a moving average crossover method, only opening trades when one moving average crosses over another. Others simply use pivot points as their method of trading, only entering trades when the market reaches certain areas of support and resistance. Pivot point levels are calculated using the previous day’s open, high , low and close which determines the current day’s major and minor levels of support and resistance as well as a pivot point level where the market is likely to change the trend and move in the opposite direction.

Others will use classic Japanese candlestick patterns to determine market entry and exit. Some will use indicators and oscillators to ascertain when the market is either overbought or oversold and likely to pullback, often using a contrarian view of the market. As you can see, NASDAQ emini contracts are an excellent choice for utilizing a emini day trading method with a variety of approaches to the market.

NASDAQ Emini Scalping

Scalp trading the NQ is a method of profiting from the market where the trader expects to enter and exit the market rapidly, usually holding a position for only a few minutes. The idea is to “scalp” a point or two quickly exit the trade. Sometimes executing many trades throughout the daily session, the scalp trader is not swing for the fences hoping to make huge gains with one trade. On the contrary, it can be said the scalp trader is happiest when he is out of the market since this method reduces exposure time. With tight stops in place, the scalp trader knows he will not lose much on bad trades since he will quickly be out if the trade goes south.

Although this type of trading is used by many experienced traders, it is also an excellent choice for those new to emini trading. Using one contract, novice traders can get their feet wet and learn market dynamics as they build their confidence. By using the scalp trading method, the rookie trader need not worry about a devastating loss if they follow traditional scalp trading rules and use tight stops and exit quickly once a trade turns sour.

Day trading or emini scalping, no matter which method is chosen, the NASDAQ emini contract lends itself very well to either since the futures markets are volatile and liquid enough to make many trades daily. The NQ Emini is an excellent choice for traders which have chosen to begin a emini futures trading career

Learning Emini Trading With A Focus On Trading Well

2009-06-10T03:05:00.010-05:00

Trading Well, Not Profits Should Be Your Goal
Make no mistake, the odds of long term success at short term trading stands firmly against most all who enter the financial markets. Each year, beginning traders set out with a plan to educate themselves about emini futures trading with most soon realizing index futures trading is one of the most difficult challenges they’ve ever experienced. Once they reach this realization most will throw in the towel, ending their short trading careers in frustration, while a serious few will stay in the futures game long enough to learn how to trade eminis and become successful. Will you become one of the few serious winners or will you go home with the losers?

Profiting consistently in the index futures markets demands standing against the crowd mentality which requires a level of commitment and dedication most cannot successfully achieve. By beginning to build on these skills early in your trading career, you will be one step ahead and on your way to trading well. Trading well is what successful traders strive for everyday in the markets with profits being the result of trading well. Most emini futures traders use various techniques that comprise a emini trading system to execute potential trades. By learning to read and understand the dynamics of the market as well as develpoing an understanding of the internal and external forces which impact the markets, will they set themselves apart from the those that have less commitment to trading well.

The emini index futures market is one of extremes with traders experiencing winning and losing on a daily basis since all experienced traders know losing trades are a part of trading well. Losses are a part of futures trading and to be expected. How the trader handles losses is the difference between a successful trader and someone who will not last long in the game. The emotional up and downs, so much a part of the markets, drives many rookies to a quick exit. Once you learn how to handle your losing trades and accept losses equally with controlling your emotions, you’ve matured as a trader.

Learning to trade well is the key to the game. Beginners come into the emini futures markets raw and reckless with no clear understanding of market dynamics and most importantly, with no trading system or an expectancy. Learn from mental mistakes. Make notes on bad executions, cut losses short and use trailing stops. Learn to exercise discipline since lack of this important skill can end a trading career far more rapidly than a lack of trading knowledge. Many new and inexperienced traders often find themselves in a cycle of winning and losing bigger, overtrading to “get back” what they lost on the previous trade, eventually blowing out their trading account. At this point the trader will either give up or commit to gaining the skills through emini trading education to become successful.

Use a Emini Trading Mentor

Locate an experienced trader that’s willing to share his knowledge about the markets. Ask about winning emini trading systems, bad habits and losing emini strategies. Find a mentoring program that utilizes a trading system that can be expanded on once you gain confidence and experience at emini trading. By joining a mentoring program, beginning traders can learn the system used by the mentor with some offering a live emini trading room so the beginner can follow along during live trading sessions. Turn their knowledge into your success and follow their advice. The assistance you receive eliminates throwing money away and many months of frustration.

One Of The Best Emini Trading Mentors - Alex Wasilewski

Emini trading requires that you learn to crawl before you walk. Unfortunatley, many who enter the futures markets each year believe they can walk when they haven’t yet learned to crawl. The futures trading roadside is littered with the blown out trading accounts of novices who didn’t have what it takes, focused only on the potential profits to be made rather than learning to trade well.

Emini School Lesson One - Dump The Stock Market And Focus On Emini Trading

2009-06-07T20:16:00.011-05:00

Emini School - Forget Stocks & Trade Futures
If you’re reading this page it is probably for one reason - you are bored to tears with trading stocks! Understandable, but we shouldn’t be too hard on stocks since stock trading is where almost every veteran trader began his career before moving on to other trading instruments such as emini futures contracts. Usually starting as a fundamental investor, searching for specific stocks in favorable sectors or buying on a “hot tip” given to us by a friend, we all begin somewhere and that starting point is almost always the stock market.

Learn How To Trade Emini Futures - 89.9% Success Rate

Once we enter the market we undoubtedly become hooked although not in a wreckless and gambling sort of way (there are exceptions and they don‘t last long), but in more of a analytical and rational sense, which turns us into students of the financial markets. We grow to love the ebb and flow as bulls and bears fight it out each day. The successful veteran trader has learned profits are the result of trading well. He understands that profits are a byproduct of his skill and concentrates on developing a system that fits his personality and tolerance levels. And for most, it began with a simple stock purchase.

Once that first stock is purchased, one of three things is going to happen. 1)The investor is going to sell the stock at a profit or loss then walk away. 2) Continue to invest as a long term fundamental investor -concerned only with companies and the bottom line or they will become number three. A life long adherent of technical analysis who could give two cents if a company goes bust or what geopolitical event is currently upsetting the world markets. Long or short ,the technical trader doesn’t care about anything except being on the correct side of the market and he does this with technical analysis.

After cutting their teeth on stock trading, many find it boring and labor intensive since stock trading requires hours of chart scanning to find potential stocks to trade. Liquidity and volatility can be an ever present problem for stock traders since stocks may trade sideways, with very little movement for days or weeks, even months. Eventually, some stock traders seek out a different approach to the market by utilizing a different financial instrument.

Emini school lesson one - the emini futures market is liquid enough for a trader to make profitable trades several times daily. Long or short, profitable trades can be executed in every daily session which is why emini trading has exploded since their introduction in 1997. Emini day trading is a popular method used by index future traders, with some executing a trade at the open and riding the day’s trend all the way to the close while others will employ a emini scalping strategy, entering and exiting the market rapidly, often making several trades daily.

Whether you are a full time stock day trader, swing trader or a hard core fundamental long term investor, emini trading with futures contracts offer and excellent opportunity for short term profits. Emini contracts are available to trade for all of the Indexes: S&P 500, NASDAQ, DOW and The Russell, all of which offer enough liquidity to enter and exit the market several times daily. With lower margin requirements than the full-sized index futures contract, the emini index contract is available to those that don’t have the $25,000 minimum required to open a stock day trading account, which eliminates many people that would otherwise participate in the stock market on a daily basis.

If you’re bored with trading stocks and looking for a new financial instrument to trade, you should consider emini trading. With enough liquidity on a daily basis to trade several times each session, more than enough opportunity exist to profit. Since the trader often focuses on one index contract such as the Dow Emini, he eliminates hours of research which otherwise would be required to locate stocks to trade. Emini school lesson one - dump the stock market and learn to profit with a emini education.

Emini Signals - Moving Averages, Pivot Points, Oscillators And Emini Trading

2009-05-25T02:40:00.025-05:00

Market Direction With Emini Signals

Trade execution is a much talked about subject within index future trading circles with all market participants favoring one or two emini signals to initiate trades. In this article we will profile some of the most utilized and popular signals traders add to their trading system and charting software to interpret market direction with the understanding traders are unique individuals and each one will have different preferences.

Learn How To Trade Emini Futures Effectively - Click Here

Pivot Points
As a trader you have undoubtedly heard of support and resistance. Pivot points are used to determine areas of support and resistance and are very popular with emini futures traders. Emini pivot points can be calculated different ways however the most utilized method is by averaging the day’s open, high, low, and close divided by 4. However, we won’t get too heavily into the calculation of pivot points when I can send them directly to your email everyday before the market opens for FREE. Enter your email address in the email widget to the right if you would like to receive them daily. Pivot point support and resistance levels are an excellent choice for trading emini contracts and employed by many veteran traders.

Moving Averages
Moving averages are another tool used by futures traders to profit, mostly with the day trading method rather than a scalp trading methodology. Many emini trading market players only use the 9 and 18 day moving averages however time frames are entirely up to the individual trader.. Although moving averages are lagging indicators they are excellent for determining the market environment and making sure you are on the right side of the trade. Some traders will use the 9 and 18 day moving average to enter the market in the morning when market direction is determined in some cases, and ride the trade all day until close, profiting handsomely.

Overbought/Oversold Indicators
Price extremes very often send short term traders into a frenzy when indicators reveal futures contracts are reaching overbought/oversold territory. The New York Tick is one such indicator. When showing plus or minus 1000, the market is said to be in severely overbought or oversold territory and a reversal is likely.

The TRIN is also another indicator used by traders to determine the mood of the market. When the TRIN has a reading of 1.0 or above, the market is generally moving down. With a reading below 1.0, the bulls are usually in control of the market.

RSI (Relative Strength Indicator)
The Relative Strength Indicator is another indicator very popular method for determining emini signals. With a range of 0 to 100, oversold conditions are present when the indicator is nearing zero on the RSI and overbought conditions exist when the indicator is nearing the 100 mark. Many traders use the RSI in conjunction with Japanese candlestick charts and moving averages.

Stochastic
The Stochastic is also used by emini traders to determine oversold and overbought conditions and like the RSI, is has a range of zero to one hundred. Oversold conditions are implied to exist when the Stochastic is nearing or goes below 30. Overbought conditions exist when the Stochastic is nearing or reaches 70. Just like the RSI, the Stochastic is used by index futures traders along with charting software, usually found at the bottom of the chart screen.

Overbought and oversold indicators can help determine market direction and possible reversals, but are better when used with other indicators rather than being used alone to determine emini signals on entry and exit.

Japanese Candlestick Charts
Candlestick charts have long been the choice of emini traders as well as traders across all financial markets. Developed by a rice trader in the 17th century to predict rice prices, modern traders have incorporated them into many popular trading systems. Easy to read with clearly define opening, high, low and closing levels, candlestick charts can be used across all time frames. Very popular with emini scalping traders, candlestick charts can be set to a one minute setting to follow even the smallest time frame. Although all traders do not employ candlestick charts, most traders would equate not using candlestick charts to driving a car blindfolded.

These are just a few of the emini trading tools utilized by successful index future traders to interpret market conditions and alert them to emini signals that may indicate possible trade setups or when to exit the market. However, an emini trading system is a must to be successful, not only in the emini market but in any financial market. Index futures traders live in a fluid and volatile environment where market noise is a constant. Learning to read emini signals for order entry and exit is part art and part science and is something that is learned only by experience and by implementing a proven trading system.

Dow Futures Live Trading Room - Profit With Experienced Traders

2009-05-03T19:00:00.024-05:00

Dow Futures Live Trading
YM futures trading or Dow emini trading has seen exponential growth since their introduction with traders attracted to the exceptional liquidity and potential profits offered with these emini contracts. With a $5 multiplier for each contract, it doesn’t take much volatility within the futures market for traders to profit with several trading opportunities available each day.

Click Here To View The Daily Dow Emini Trading Room Results

However, some market participants don’t have the experience necessary to trade Dow futures and can benefit from trading along side veteran traders. Fortunately, technology has advance to the point trading along side experienced traders is as simple as turning on your computer and joining a Dow futures live trading room. Going it alone as a “noob” trader in the index futures market can be frustrating since a understanding of market dynamics and a proven trading system is necessary to be successful. All too often, noobs will find themselves reaching the point of desperation, executing trades based only on emotion. For example, a trader may start the morning session in a winning position only to see the market turn against him, blow through his stop loss, hoping the market reverses, finally exiting the position only when enough pain has been inflicted.

Emotional Trading Results

Brooding over the huge loss, mad at himself for not obeying his stop loss, the noob trader frantically looks for another set up to “get back” what he lost on the previous trade. Instead of waiting on the market, he forces a trade only to once again see the market turn against him, sustaining another staggering loss. Frustration and desperation are constant companions for the unprepared - inexperienced “noob” trader. The above illustration is why it is so important for those new to the Dow emini index futures markets to first have a emini trading system in place. Rules and discipline are both part of successful trading just as losses are part of successful trading. However, the experienced trader knows how to practice sound money management rules and does not sustain heavy losses since he follows the rules of his trading system.

Much has been written about trade entry and how to spot the perfect set up with very little about how to exit the market. Money management through stop loss and capital preservation(trade exit should the market turn against you) are just as much a part of the trade as market entry. Losing trades WILL happen, this is true, but having a trading system designed to handle these losses is an important part of successful trading. Following along with experienced traders in the Emini Trading Room can greatly improve trading success as rookie traders learn trading techniques used within a proven trading system. Veteran traders explain why they entered the market and why they exited the market at certain levels. Whether day trading or scalping eminis, the new index future trader will learn the dynamics of dow emini trading.

A Word About Trading Rooms

Some of the most knowledgeable people in the world trade the futures markets so why would you want to compete against these experienced professionals without the necessary skills to participate in the financial markets? Utilzing the services of a reputable trading room can help you stay one step ahead and increase your chances of profitable trading.

Emini Scalping - Why New Index Future Traders Should Consider Scalping Emini Contracts

2009-05-02T15:04:00.018-05:00

Emini Scalping

As emini index traders, we should always be testing different trading methodologies that can improve the amount of winning trades we execute. Emini scalping is one method that allows for increased potential for profitable trades since exposure in the market is greatly reduced when scalp trading emini contracts. When utilizing this method of trading, traders are capitalizing on extremely short term opportunities. If you already understand the concept of scalp trading and are looking for a scalping system, follow the link below:

Click Here For Our Recommended Emini Scalping System

Although scalp trading is widely employed by veteran traders, those new to the futures markets can also benefit by using short term trading methods. Building confidence as a new trader is vitally important and by setting our goals at obtainable levels, we can raise our levels of confidence. The emini futures markets are highly liquid and volatile, offering many opportunities for the trader to profit many times throughout the trading session. By setting goals for only two or three points on each trade, the novice trader can build confidence by reducing exposure and lower risk of broken trades.

The key to emini scalping, is to approach the market with a trading plan to get in and out of the market quickly, not swinging for the fences hoping for a homerun. Small profits are the goal. Given the nature of the emini futures market, there will be many opportunities each day for the trader to execute trades with the potential of profit. Veteran traders that use scalping as their chosen method of trading will execute a large amount of trades each day.

As a trading method, trades are entered and exited rapidly. Once the trader begins to implement the scalp trading method, he will learn to exit the market swiftly on both winning and losing trades. Since the trader knows he will exit quickly no matter if the trade is successful or unsuccessful, large losses are prevented. New traders so often approach the markets with ideas of huge profits and making a mint rather than focusing on learning to be a successful trader. It is so important for new traders to build confidence and understand profits are the result of disciplined trading.

Although scalp trading is an excellent method for new traders to utilize, it is also a method that is expertly used by market professionals. What makes emini scalping so profitable is position sizing. Professional market players wouldn’t use this method of trading if it didn’t offer a substantial profit. Trading one contract will yield small profits on a winning trade. However, by increasing the amount of contracts on each trade, the futures trade can increase the amount of profit through position sizing. On the flip side, risk levels increase substantially with each contract added to each trade.

New traders should start with only one contract and increase the amount of emini contracts traded on individual trades once confidence and skill levels increase. The emini futures market is no place for thrill seekers or those who find themselves trading out of desperation. This recklessness will always lead to total failure and empty trading accounts.

Another important factor to consider is your broker. Emini scalping is a trading method that yield smaller profits and decreases risk exposure. However, because the amount of profit is small, traders will need to execute many trades to show a decent profit. Broker commissions will have and affect on profits which makes having the right broker very important. Competition is stiff in the futures brokerage industry and locating a broker with inexpensive trading fees is not difficult. Some brokerage firms cater specifically to high volume traders and offer competitive commissions. It should be understood, you will pay a commission on both sides of the trade, both on entry and exit, so this should be considered when choosing a broker.

Emini scalping requires quick execution of trades since traders seek to be in and out of the market very quickly. Make sure a broker is chosen that offers a reliable trading platform. Nothing frustrates a trader more than to attempt trade execution only to see the market move without their trade being executed because of their broker. It cannot be stressed enough the importance of a reliable broker.

Although emini scalping is most often employed by veteran traders, a new trader should consider scalp trading emini contracts as a way to obtain the confidence so necessary to trading success. Because this method reduces exposure time within the market, losses can be limited and account draw downs are kept at a minimum allowing the novice opportunities to execute many trades.

Emini Scalp Trading Offers Advantages Over Other Forms Of Emini Trading

If you are experiencing difficulty in your emini trading, maybe you should consider changing your method to a shorter time frame. Emini scalping involves a shorter time frame but does require the ability to be laser focused and quick on the draw. Since the holding period for a scalp trade is generally no more than a few minutes if not only for a few seconds.

New traders run into difficulty when they do not approach the markets with a defined plan and look for opportunity with a shotgun method. Day trading, scalp trading, no clearly defined plan for trading and basically entering a trade and hoping for the best outcome. There daily plan for trading is as fluid as the market itself, ever changing as the session flows toward the close. Veteran markets players know trading without a clearly defined system, or plan is a recipe for disaster.

By utilizing a emini scalping method, the trader limits his exposure and has a exit strategy designed to only cost him no more than a couple of points should the trade go against him. By design, emini scalping is for quick entry and exit. The very nature of this method of trading reduces exposure and be default, minimizes potential losses. Although the index futures scalp trader generally executes many more trades a day than the atypical day trader, the scalp trader is in a better position to control the amount of losses incurred.

Professional traders have known for years emini scalping can generate excellent profits each day if the trader practices sound money management skills and follows a trading system with rules designed to protect against devastating losses that so often are a part of the rookie trader’s daily routine. The importance of a trading system can not be emphasized enough. Unfortunatley, new traders blinded by the profit potential offered by emini trading, seldom have a system in place before jumping into shark infested waters. Once they blow out their trading accounts they finally realize that only when a trading system is in place will they be on the road to profitability.

Index future trading requires discipline and intestinal fortitude not required in many other money making fields. The financial markets are the arenas of the most informed and financially savvy participants, bar none. In order to compete in emini trading, the rookie trader must have a system in place that will improve their chances of success against stiff competition. By utilizing a emini scalp trading system and by exercising sound money management rules, the new trader can quickly be on his way to emini scalping success.

Emini Trading And Using Trade Exits To Gain Maximum Profit

2009-03-16T13:09:00.004-05:00

Emini trading exit strategies are an integral part of any trading system. Without an exit strategy, your trading is doomed to failure. All experienced and veteran emini future traders know what their exit will be before they enter any trade. Exits are designed to attain the maximum amount of profit and giving little profit back once the profit is made on the trade.

All trading systems should have different exit strategies designed into them depending on the current market situation. For example, the trader may have one exit designed explicitly for getting out of the market that do produce a small loss but there is a decrease in initial risk. Other exits are designed to produce maximum profits. While some are utilized to keep the emini index futures trader from giving back too much profit. In this article we will cover a few of the exit strategies that can be designed into a emini trading system and how they can be utilized.

The market timing is most often implemented when the trader expects the market to move in the direction they think very quickly after execution upon entering the market. In this case, the trader may execute the exit before his stop-loss is hit reducing losses even further if the market does not go in the directions thought. This type of exit is very often employed by people utilizing a scalp trading methodology with emini trading. Scalp traders, as a rule, are usually only looking for a couple of points before they quickly exit the trade. Scalp traders may very often execute large numbers of trades throughout the daily session.

One other very popular exit strategy used among emini traders is the trailing stop. The trailing stop is dynamic and fluid, moving along with the market after a trader enters a position. This type of exit is very often employed by day trading emini futures traders. Day trading is generally defined as entering a position at some point during the market session and exit is executed at some point before the daily session ends or not long after the session closes in after market hours. However, some day traders may enter and exit positions several times during the day.

Trailing stops are an excellent strategy to use mostly if the market initially begins to move in the trader’s favor. Depending on the emini trading system used, as the market continues to move in the predicted direction, the trader will automatically move his stop above his original stop loss reducing the potential loss should the market reduce. Trailing stops are not a guarantee of profit but do reduce the potential of larger losses that would be suffered if the original stop loss was hit. Remember, a emini trading system should first be designed with emphasis on money management, or protection of capital rather than profitability. Traders that learn this concept are very often the ones that live to become successful veteran traders.

The trailing stop has the ability to help the trader gain maximum profits but the emini trader should also understand, the trailing stop will also give back some profits since it is trailing, which of course means once you gain profit’s the stop will move up behind the trader’s position. However once the market reaches exhaustion, the market will pull back and the stop will be hit thus giving back some profit. This is the nature of the trailing stop. It will not get the trade out at the top but will however produce profitable results in most cases if market direction is predicted accurately.

One of the most utilized exit strategies by emini trading market participants is the psychological or “mental” exit. The mental stop depends entirely on the trader and the trader’s interpretation of the market. This exit strategy should only be used by traders that have the discipline and experience to determine when the best time to exit as market conditions dictate. Maximum profits are the goal. Calling a top is one of the most difficult parts of emini trading or any other form of trading and seldom will a trader execute an exit at the top. However, mental stops are an excellent choice to maximize profits.

The best emini trading system are designed with simplicity in mind. Rather than focusing on optimizing a index futures trading system, understanding and simplicity should be the main focus. Simplification of a system does not mean only one exit strategy can be used. You as the trader can have multiple exit strategies and keep them simple to understand and follow. System that are intricate and difficult seldom work since the trader often becomes overwhelmed with the massive amount of information and signals produced by a over-optimized system. Simplistic systems work by allowing the trader to employ multiple exits and still meet their trading objective.

One exit that should not be avoided although very often employed by inexperienced traders is the scaling out exit. This form of exit requires the trader by multiple emini contracts and scale out of them as the market move. If the trader will take the time to analyze this exit, he would realize how much more profitable he would be if held the entire position and exited fully. The purpose of designing an emini trading system is to maximize profits and reduce the amount of major account draw downs and losses.

If the system is designed properly, scaling out of positions should not be necessary since the system will produce the best result with a full position. Inexperienced index futures traders very often employ this strategy falsely believing they are successful when they are really robbing themselves of maximizing profits.

Trading takes a considerable amount of dedication and discipline as well innate competitive spirit, no matter what financial market is chosen. Index futures is probably the most fluid and volatile of all the financial markets which requires a well designed system for the market participant to be profitable at emini trading.

Emini Trading | Set Ups And How To Incorporate Them Into A Index Futures Trading System

2009-03-08T19:35:00.008-05:00

Emini trading requires the participant to be prepared for the coming market session and one of the criteria that must be met is trade set up considerations. Liquidity is very important, although the emini index futures market seldom has issues with liquidity during regular market session. However, the index futures are accessible twenty-four a day and liquidity is a concern in the after hours market. If a trader holds a position into the after hours market, unloading these contracts once the daily market has closed can become difficult. Liquidity should be considered if after market hours are chosen by the market participant to hold positions.

Another important consideration is volatility. Depending on the chosen time frame, volatility or price movement is important before acting on a set up. Futures traders live for volatile markets. Enough market volatility is needed to make a profit, usually two to three times the trader’s initial risk.

Whether trading a pullback or entering a fast moving upward breakout, the emini trader needs to be aware of the dominant direction the market is moving. All financial markets move in three direction: up, down or sideways with the index futures markets being no different. Overall, markets usually trend down or up twenty percent of the time give or take a few percentage points and move sideways the remaining time. However, the emini day trading participant pays attention to the overall trend make makes his living trading entering both long and short positions within the prevailing trend.

Most players have emini trading systems that keep them in the market continually. But if you consider the sideways market as a condition of the overall market, then you probably need a emini trading system that keeps you out of the market at least seventy percent of the time. The person that is always holding a position in the market is going to spend a great deal of time in a sideways market which translates into many losing trades and many transactions cost, which makes your emini contract broker very happy. If this is the case, you should look at tweaking your emini trading system to avoid sideways markets. Sideways markets are very common during the New York lunch hours when floor traders break for lunch.

Set ups are criteria that must be met, according to your emini trading methodology, before ever executing and entering a position, either long or short. When this set up criteria is met, overall improvement of the trade becoming profitable are enhanced. Most index futures trading participants make a profit because the market moves a sufficient amount from where they entered the market. Although set ups are considered a criteria for a potential trade entry, the are better used as an event that must occur before the trader even considers opening a position.

Timing the market is also a very important consideration when utilizing trade set ups. Once the emini trader chosen the time frame in which to trade and understands the general market direction, he must wait until the actual move begins. If your emini trading systems alerts you to a possible trade set up, odds are the system will alert you before the move actually happens. Seasoned traders will use experience and market knowledge to keep from entering a position on the alert while inexperienced traders will enter once the alert is recognized. Experience brings patience and the experienced trader will only enter once the market move has begun. Improve your odds of success by confirming the market direction you are expecting before executing a trade.

Emini trading software is very important and almost all trading software will come packed with many different indicators and oscillators built into the package. Unfortunately, these oscillators and indicators give the inexperienced participant a false since of security. They will spend a few hours learning about individual indicators and oscillators and usually find these over-optimized system only lead to disaster. Too many indicators cause information over-load while emini trading systems that utilize one or two indicators such as moving averages or areas of support and resistance are much better. Simple systems using few indicators are the systems most often used by veteran traders.

Building a system that is tested and proven is how veteran traders become successful trading index futures. Focusing on how to locate trade setups and timing market entry are just one the keys to market success. I later articles, we will discuss different trade set ups and how they can be used to improve trade execution in both trade entry and trade exit. However, it should be noted, most newly minted traders focus too much on trade entry and less on exiting trades. Knowing when to sell, it has been argued with great success, is one of the most important factors in protecting trading capital and living to trade again.
Trading systems that alert the trader to both entry and exit strategies that are simplistic in mechanics are by far the best emini trading systems

Emini Trading Strategy : Capital Preservation And The Importance Of Stops

2009-03-02T11:15:00.007-06:00

Emini Trading Strategy

Emini Education

People very often enter the index futures market using a new a set up technique or jump on board following the momentum crowd based on a event that has spurred the market, with very little consideration given to their exit strategy. Seasoned veterans who understand the market and emini trading, know well planned exit strategies are the key to making money. It’s been said many times by many experienced traders and is worth mentioning once more: Cut your losses short and let your profits run!

Although this sage advice has been preached for untold years, people fail to follow this cornerstone rule of trading the financial markets. The point of the rule, you will never be profitable as an emini futures trader until losses are cut short and bad trades exited quickly. Much effort is put into learning and recognizing trade set-ups and how to enter the market with very little placed on how to exit both profitable and losing trades. The trader will only taste success once he learns to master exiting trades and money management, or in this case, capital preservation.

Almost all experienced futures players have a emini trading strategy they use to enter and exit the markets with this strategy being their trading system. A trading system is not complete or does not exist until the trader knows what his exit strategy is before he enters the trade. Once the market presents a possible trade set up, a index futures trader should know what his exit will be before he ever enters the position, long or short. Knowing how you are going to take profits and letting them run should also be known before entering the position as well.

Setting Your Stop Loss

When a trader determines where he will place his stop loss, he is determining one very important factor: The trader is drawing a line and setting the maximum amount he is willing to lose on the trade should it go against him. However, determining where to place stops increases with experience and a clear understanding of market dynamics. Many emini trading market participants routinely place there stop loss in areas of recent support or resistance. The problem with this stop loss emini trading strategy is, everyone else knows where these support and resistance levels are located since they can read a chart also. The index futures market will very often reverse and execute protective stop orders in these areas then slowly return to the former market trend, leaving frustrated traders in it’s wake. This is where market experience and knowing market dynamics comes into play. Using a emini trading strategy that is not so obvious as placing your stop loss in the easily recognizable support and resistance areas is one tactic the trader may use.

Tight stops are one tactic that is beneficial to the inexperienced emini market participants since they lend themselves to micro-controlling losses by losing less money . By utilizing tight stops, the emini trader can make more than one attempt to capture a big market if previous attempts failed. By losing less money on prior broken trades, the trader has enough powder to attempt subsequent trades to capture the move. However, tight stops require many more trades that involve small losses. For the trader that cannot tolerate many losses, tight stops should not be used. Transaction cost or brokerage trade execution fees should also be considered since this methodology will increase these cost. Finding a inexpensive broker is a must for traders that utilize tight stops.

Using stops based the amount of money they are willing to lose on each trade is another popular stop loss methodology utilized by emini trading participants. The trade simply determines the amount he is willing lose should the trade turn sour. The largest benefit of this type of stop is it is only known by the trader himself. Since the stop is more then likely not placed in an area of recent support and resistance, the odds of the market reversing to take out stop orders is almost nonexistent. Other traders use moving average stops when trading emini contracts. Moving average crossovers happen when a shorter line moving average crosses over the larger moving average line, Many traders will execute their stops when these lines intersect.
Not only does the trader exit at these intersections, he also may execute another position going in the opposite direction since the emini futures market will very often reverse when these moving averages intersect and cross one another.

Stops are not unlike road sign and signals we see while driving our automobile. These signs alert us of impending change or that danger may be lurking. Stops do the same. Just as when driving, we sometimes disregard the road signs and continue on our present path. We may not experience any danger but we are not driving safely. If we allow our protection stops to pass without initiating a exit trade, we are being unsafe.

Stops only work as an emini strategy if we react when these physical or mental areas are reached. How much faith you have in your trading system will be determined if you yield to it’s parameters and are not ruled by human emotion - fear and greed. Emini trading is a profitable vocation and professional seasoned traders make an excellent living by plying their vocation. However, they did not reach this level of professionalism by following their emotions. The got where they are by implementing a system, testing it and following it’s rules based on market dynamics.

To your emini trading success.

Emini Trading And Reading The Index Future Market

2009-02-28T18:16:00.007-06:00

When new participants are just beginning to learn how to trade eminis, they often struggle with a basic understanding of the index future market. Success can only come when the novice trader understands the market, it’s current strength and weakness and how their position exploits this fluid, ever changing environment. Many newly minted traders focus only on the possible profits that can be attained trading emini contracts but to fail recognize market characteristics that can lead to disaster. Following market moves such as momentum plays can yield exceptional results but can also have disastrous results on trading accounts.

When the market makes a move generated by a significant event such as an area of strong resistance broken through, this will attract crowds of greedy participants that focus on this brief period that generates upside pressure, all hoping to catch large gains from the move. When these market moves happen, most trading rules will go to the wayside with undisciplined and inexperienced traders letting greed overrule trading judgment. Unfortunately, when traders abandoned their trading system, losses and blown out trading accounts soon follow. Momentum events can disappear as quickly as they appeared leaving unsuspecting traders holding the bag.

Emini strategies that can be successful during momentum moves often lead the new trade into a false sense of trading prowess that can have detrimental effects in less climactic markets. Neophyte index futures traders will many time carry long positions into a momentum move when the market is topping hoping to ride the wave to more profits only to be whipsawed and hung out to dry. Adhering to a trading system and pre-defined trading rules is more important in these trading situations more than ever. When learning how to trade eminis, new traders should focus on reading the broader market and increase their index futures trading knowledge on how to adapt to rapidly to changing market conditions. By opening their eyes and using common knowledge to learn and utilize new profitable trade set-ups through testing, the new trader can acquire skills that other market participants seldom posses.

By joining together the general mood of the market and the current trend, the index futures market player can increase chances of finding profitable trade setups. By determining the current market trend, trade selection is much easier since the trader has tested set-ups in similar markets previously. However, make sure market conditions and dynamics fit the same time frame as the analytical test.

Emini trading players should short sell equally as easily as they open long positions. However, short selling is often a physiological barrier for many individuals since the concept is difficult to understand. Buying into a long position does not present difficulty as the concept is easily enough understood since people buy goods and service everyday, not unlike buying into a long position. However, short selling offers opportunity for participants to profit whichever direction the market is headed. Avoidance of short selling the emini futures market is omitting a profitable opportunity.

Successful futures traders begin each market session with a clear understanding of current market conditions. They acquire the necessary information that will influence the day’s session including market trend and direction, financial reports and geopolitical news that could have an effect on the market. After gauging the larger market and all internal and external influences, they will then scan for the most promising trade set ups that will likely drive the market for this current time frame. By evaluating the market as a whole, the index future trader can asses how to change their strategy to best reveal executable trades. The pre-market will very often determine market direction at the opening bell through the first half hour to hour of the session. The amount of contracts traded are determined by these factors or the trader could determine the opening hour is not conducive to taking a position at all. Many financial reports and news items are often released within the first hour of futures trading and will often set the tone for the day and dictate market direction.

By taking these factors into consideration before executing a trade, the market participant helps eliminate unexpected risks that can pop up and create broken trades and lost opportunity. By executing trades based on pre-defined parameters the trade increase his chance of success. Sometimes the emini trading participant can benefit by sitting out the first hour, especially when bulls and bears are in a tug-o-war for the day’s market direction. By sitting out the first hour of trading, the futures trader can often capitalize on moves once direction has been identified and ride the trend throughout the day and profit handsomely. By preparing himself to adapt quickly to changes in market sentiment when trading emini contracts, the trader can enhance his potential of success by recognizing moves before the momentum crowd jumps on board in a frenzy. By honing our trading skills, the futures market participant learns to recognize set-ups that offer increased opportunity. Learning to execute trades going long as well as short selling allows us to profit no matter what direction the market decides to move.

The financial markets are not for the undisciplined or the inexperienced. Only by careful study and learning to recognize opportunity when the market presents it can we be successful in emini trading.

Emini Futures Trading - Breakouts And Index Future Strategy

2009-02-21T18:45:00.014-06:00

Trading Breakouts with the ES and YM
Emini futures trading requires market participants to utilize emini strategies which increase their chances of avoiding broken trades and have proven to produce success and profitability. One of the most common trading strategies implemented by veteran traders is the breakout. In this article, we will outline the dynamics of a breakout and how to trade the breakout and increase the odds of trading success.

Major market declines can evolve into long basing periods which often produce failed rallies and multiple testing of previous lows. As continual re-testing takes place, buyer accumulation slowly shakes out the last of the sellers, the market begins to change character. Index future contract prices begin to rally toward levels of significant resistance as short term strength increases and the chart starts to reveal a series of green candlesticks with the closing tops near the candlestick highs. As this happens, the market begins to climb toward and through the area of resistance that produced prior failures.

Click Here: Learn To Trade Emini Futures - 89.9% Success Rate

Emini Futures contracts must overcome downward pressure to begin a new uptrend. Bounce traders try to build a base but cannot gain enough traction and momentum to fuel a strong enough rally. However, many times this is the momentum players join in and help bounce players push the futures through resistance. As the emini contract begins to slowly break through resistance, the dinner bell rings and breakout players all jump on the bandwagon at the same time.

When the breakout gap appears on the charting landscape, a great deal of buying power is behind the move. However, the emini trader must exercise caution at this juncture in case the move does not produce heavy volume. Tremendous buying pressure must entice other traders to join in on the frenzy to increase price expansion. The breakout gap may rapidly fill and trap inexperienced traders when heavy volume fails to show up. Moves that do not gap and only produce strong volume surges print breakouts similar to gaps but support is not as dependable and force the emini contract to a new range rather than the tell-tale rapid rise of the gap.

Breakouts that only produce moderate volume often are excellent set ups for trading pullbacks. The uptrend path is marked by many obstacles of clear pockets and congestion that is left in the wake of the previous downtrends. The obstacles very often force the chart into dips that make excellent buying opportunities. The experienced trader recognizes the profitable zones quickly and is equally ready to react and execute the trade. As is often the case, price moves quickly past the top Bollinger Band right when price hits the strong ceiling, revealing the most likely turning point on the chart. When this happens when trading index futures, the trader should follow price back to normal support which should offer opportunity for low risk trade execution.

Trend following indicators will register price surges as market players jump on board building momentum. As volatility absorbs each wave and new rallies erupt, the emini trader should ignore dip set-ups and focus on catching powerful moves by shifting to the next lower time frame and finding small packets of support in the charting landscape. At this point, volume should peak as the trending waves reach the peak as price expansion often moves into a final spike as exhaustion set in.

The index futures market will then need to take in any instability generated by the quick movement in price, pausing to breathe as both price and volume drop sharply. At this time, consolidation take place and new ranges are tested to find new areas of support and resistance. Emini futures trading does require a working knowledge of candlestick patterns and to the experienced technician, this area will reveal common formations of pennants, flags and triangles. The appearance of these formations signify the return of the markets previous state and a excellent possibility of a new thrust in the same direction is expected.

Congestion tends to fluctuate between simple and complex candlestick patterns in a series of sharp waves. For example, after the first pullback, emini strategy traders will notice the chart very often will reveal eight to ten candlesticks in a close pattern while the following congestion period shows a wide price range through twenty to twenty-five candlesticks. The emini trader should always look back at the last range to properly estimate the expected price action for the new congestion area. The trader should be cautious and trade defensively if the former pattern was simple and short.

When emini trading this method, the trader should pay close attention to continuation patterns. Constricted chart ranges should be in proportion and should time the relative trends that preceded them. The trader should evaluate all chart patterns within the context of trend relativity. A constricted range exists only in the current time frame used by the trader. Arrange drawn through one individual time frame does not automatically mean trade conditions exist in other time periods.

Index futures trading offers excellent chances of profitability in uncharted territory. Emini futures markets at new highs produce unique momentum properties that can incite quick price movement as well as unexpected behavior. As old support and resistance areas disappear at new highs, there are few areas appearing on the chart to give the emini trader a road map to vector. Although possible trade set-ups abound, risk also increases in this highly volatile trading environment. Once the emini market completes the breakout to new highs, it completes overhead inventory and supply but the the struggle for newer highs continue. These strong emini markets often produce new tests and base building before returning to the strong uptrend. The experienced trader that has learned how to trade eminis, will watch as this base building process develops through candlestick pattern formation.

As the emini futures market reaches new highs, it may return several times to test the boundaries of prior resistance levels. As the market completes these test, it creates a range or series of stepping stones before the trend resumes and surges forward or higher. The market can sometimes go immediately vertical when they enter new high breakout phases. The emini contract trade faces the challenge of doing his best to predict what the new high market will produce. At his point, it is wise for emini traders to let indicators reveal accumulation and distribution as well as candlestick formation guide their decision on trade execution. Price action either lags or leads accumulation. When accumulation leads price in the first move to new highs, odds are the new high breakout will imitate a new round of buying as new emini traders pile on an push prices higher with no basing period.

As emini trading pushes further into the days uncharted territory, the index futures trader should study existing chart patterns. The last area of congestion before the breakout occurred very often prints sharp patterns for the new move. The trader can locate these patterns in double bottom lows lying in the trading range underneath the breakout price area. The price range between the low and the previous resistance areas may reveal price targets for a rally soon to follow.

In the emini futures market, a strong move upward can occur for a extended time frame after it finally escapes the breakout area. Price may on occasion, print a strong third wave of buyers at the level of the final congestion low point. This buying thrust can easily blow past initial price predictions when the chart converges with large scale momentum buyers.

Index future trading is at it's best when trading the breakout. This type of trading offers a wonderful opportunity for traders to exploit the breakout and enjoy profits that would otherwise take day or even weeks to gain. Learning how to trade eminis effectively can be vastly improved on by the novice trader by joining our emini trading room. Veteran traders are available to explain the emini trading systems that is designed to teach and most importantly, to be profitable.

Emini Trading And Following The Trend

2009-01-31T17:00:00.014-06:00

Emini Education

Emini trading is not unlike trading other markets since the same factors can be found across all financial markets no matter which one is chosen by the trader. It is estimated that fewer than twenty percent of people that trade the financial markets have or utilize a system to guide their trading, long term investors included. Of this twenty percent or less, most are using predefined indicators with very few understanding the concept behind their system. Most people try to find high-probability entry without any concept of position-sizing or and avenue of exiting the trade. This form of trading usually leads to a trading method that is negative in expectancy.

However,if the trader understood the role that exists between position-sizing and exits in trading, they would be quite satisfied with a that only produces winners forty percent of the time. We've all heard it said before but this does not make it no less true, " Let your profits run and cut your losses short. This is exactly what a trading system can do for traders that utilize them.

Following The Trend

Trend following indicators tell the trader when the market has changed direction from up to down or down to up and are represented through various chart patterns or mathematical representations. Once the trader enters the trend the trader lets the trade run to fruition until the trend begins to weaken. A classic example of letting profits run. If the market cooperates, the trend follower will enter the trade once the market fits his criteria and will stay in the trade as long as possible.

At some point the trend will end and as a result, cutting losses short should come into play as the trader senses and sees the market has turned against his position and immediately exits the position. However, if the position is currently ahead of this point, the trader exits with a profit. If the position in behind when the market turns, the trader still liquidates the trade and avoids a large loss. Either way the trader has protected himself from a loss and draw down in his trading account that will adversely affect his ability to continue trading. This is so important for emini trading.

The Advantage Of Following The Trend

The advantages of following the trend are simple in nature since you will never miss a major move within the market. If the emini futures market turns from down to up, the trend following indicators utilized should issue a buy signal to execute a long position. However, there is a question that must first be answered: When does the trade execute the order to buy? If it is a large upward move, the signal will be strong so entry should be executed immediately. A second benefit of the strong upward move is the longer the position can be held, the lower the transaction or commission cost will be since less trades need to be executed during the market session to reach profit goals.

Strategy should be considered here since the emini trader must understand if he can jump on board a major move that profits from one trade can be excellent. This point explains how having a system that is correct forty-percent of the time can still be a winning system since losing trades are cut short and winning trades are allowed to run.

Disadvantages Associated With Following The Trend When Emini Trading

One disadvantage of following the trend is the trader's indicators cannot determine the differences between a major move that offers a large winning trade and a short lived move that is unprofitable and holds the potential for loss. This very often causes a whipsawing effect as emini traders very often enter trades on the signal only to have the trade quickly turn against them causing small unprofitable trades. Small losses by successive whipsaws can quickly compound and cause the trader utilizing a trend following strategy to consider abandoning their trend following system.

Should Everyone Utilize A Following The Trend Methodology When Emini Trading

If following the trend fits your personality and meets the needs of the traders emini trading goals, then by all means they should utilize a trend following system. Following the trend is a time tested method that is used by investors and traders across all markets. As the markets become more and more volatile, there are always more new trends for the trader to use for profit. Emini trader will very often use a long term trend to enter positions on pullbacks and ride the next wave of the trend up during the market day.

To your success emini trading!

Emini Trading Room - Learn To Trade Emini Futures

2009-01-09T18:00:00.029-06:00

Emini Trading Room

There is no doubt the attraction of the equity markets is a powerful force, especially for people that are new to the markets who are full of excitement and exuberance dreaming of the piles of money they will make speculating in the markets. This blog was designed to help people that wish to learn how to trade eminis and avoid the pitfalls that so often await the new futures trader as he learns the dynamics of the market. The best way to avoid these precarious pitfalls on the road to emini trading success is to join a emini trading room and follow the index futures market live with experienced traders.

YM Emini Trading Room Results: Click Here

ES Emini Trading Room Results: Click Here

Emini trading rooms are abundant but finding one that provides new traders with the learning tools to become successful and proficient traders can be difficult. Looking over the shoulder of a professional trader can greatly decrease the learning cure and get new traders up to speed much quicker than going it alone. Education is the key to becoming successful as a emini futures trader. In a reputable emini trading room, new traders can follow along as experienced traders explain potential trade setups and show how trades develop.

New traders will benefit from the knowledge of experienced traders as they explain chart formations as well as the many different indicators utilized in their trading system. Different trading methodologies will be covered including scalp trading, trend trading, time and price, pivot points and many other tried and true emini trading methods. Over time the novice trader will begin to understand market dynamics and learn to recognize potential money-making trade set-ups without the help of trading room moderators.

Interaction among trading room members is also a great way to learn and spot potential trade set-ups. Insight from other members is another great way to learn since differing perspectives and points of view about the market can help us see market traits and patterns we may not have recognized before. Most traders prefer one emini contract and will trade it exclusively while others will trade several different contracts depending on market conditions. In a community of traders, you will learn about other contracts, their characteristics and how they react to varying market conditions. You may eventually find yourself trading a contract you thought was not a perfect fit to your personality and risk tolerance.

The beauty of joining a emini trading room is once the trader learns one set up that is successful, the trader can then learn to recognize this set up and use it over and over with success. Emini futures traders use many different set ups with varying degrees of success. Some may rely on strong support bounce plays, while others may profit from shorting eminis at areas of strong resistance. Other still may use pivot points while some may rely solely on candlestick chart patterns. As you can see there are various avenues in which the emini futures trade can approach the market.

One thing is certain, all emini futures traders use some form of mechanical system to profit and execute winning trades when emini trading. Using a mechanical system has one very important element in that it eliminates the human emotion that is so often associated with new traders executing losing trades and eventually blowing out their trading account. Human emotion is probably the single largest factor associated with begining traders giving up in frustration and having a depleted trading account.

Joining a emini trading room that has a proven record of success and also one that does not charge astronomical monthly fees is the best route for traders that are interested in making emini futures trading a full time vocation to earn an income. Once the new trader joins, he can follow along and watch the market in real time as the experienced traders explain their system and why they enter and exit trades at certain points during the market session. A emini trading room should also offer after hours market instruction either through live chat or through email allowing the new members to ask questions to better understand the dynamics of what took place during the previous market session.

If you are considering emini trading, PureTick offers one of the best emini trading rooms available to new index futures traders. Here is the link to their website and emini trading room . All index futures including the (ES)S&P 500, (NQ)NASDAQ, (YM)DOW and even Stock and Forex trading are available. The offer one-on-one mentoring services as well as the live trading room.

There are veteran traders in the room whom are very good at calling the plays they are seeing during the daily market session as well as their executed trades as they occur. Charts are used in the room by the moderators and traders to show the set ups during the active market.

How To Trade Eminis And Avoid Common Beginner Pitfalls

2009-01-04T20:06:00.008-06:00

Many new futures traders find their way to the futures market through stock trading. One of the very first lessons a stock trader will learn, especially day traders and scalp traders, is to watch the S&P 500 futures. Most stock traders have a very healthy respect for the S&P 500 futures because they know that wherever they go, the cash markets will follow. Index futures traders that trade the Dow and NASDAQ emini contracts will also follow the S&P 500 futures as well since they know the second they go south, it is time to exit all long positions.

Click Here To View The Daily Emini Trading Room Results

Always keeping one eye on the S&P 500 futures is the first lesson a novice trader needs to learn in how to trade eminis. Many stock traders eventually move to the futures markets but for various reasons. One very large reason is the that index futures require very little research on the part to the trader each night since they trade the same market everyday. Stock traders must scan and research different stock charts every night to find possible trade set-ups that offer trading opportunities once the market opens the next day.

Another reason stock traders may decide to change from stocks to index futures is volatility. On any given day the market is open, futures will almost always move to one direction or another offering opportunities for profit. Volatility is the key to movements that appear on chart screens that offer potential trade set-ups and executions. Reasons vary as to why futures contract traders choose the emini market but one reason is clear, they do offer enormous income potential for traders that are disciplined and focused.

Learning how to trade eminis takes time and should not be approached until sound fundamentals are acquired on how the dynamics of the market works. New and inexperienced traders that have not taken the time to gain the fundamentals about the larger markets, including the futures market will most certainly fail and deplete their trading account quickly. One "death spike" can completely destroy a trading account. A death spike receives it's name because of it's formation on a chart. Usually death spikes occur when a unexpected financial news item hits the wires. In seconds, the futures market can turn and blow past stops, not stopping until the market has shaved off 30 or more points in seconds.

Being unprepared for these events can be catastrophic for the inexperienced futures traders. Trading more than one contract at a time with no experience is the main reason for these trading losses. Novice traders often exhibit impatience and want to rush the road to profits and end up losing all of their trading capital.

Money management or preservation of trading capital is one of, if not the most important rules and discipline a futures trader can learn. If there is on area that a trader should focus his energies on, it is developing a system that is mechanical in nature, either through software or mentally, and never deviate from this system during the trading day.

Developing a emini trading system that is tested against real time market data before ever trading the markets live, will increase the trader's chances of being successful. Experience futures market traders all use a system that has been tested and back tested and proven. One major function of the mechanical trading system is money management used to protect their trading capital.

Although their trading system may vary in design, all focus on money management, One trader may just use piviot points, another may use support and resistance, while others may use moving averages and crossovers. Trading systems are as varied as traders but all have one thing in common...money management!

When experienced traders first learned how to trade eminis, they quickly learned that using stops and exiting trades quickly once the trade goes south it the key to winning as in the emini markets. In fact, most traders will tell you, they experience more losing trades than winning trades, however, they have learned to cut the losing trades short and capitalize on winning trades.

Also, we need to address trading platforms. Charting software and brokerage accounts a re a dime a dozen...there are hundreds that cater to trading the financial markets. A broker should be chosen with two very important points to consider: One is commissions. Brokerage firms that cater to all financial market traders will more often have higher commissions than one that specializes in one market such as the emini market. Commission rates vary, but finding commission rates of $2.50 per side is not uncommon and these brokers should be sought out since commissions can eat into profits.

The second is trade execution. The emini contract markets are fluid, volatile and can be lighting fast and fast executions are a necessity. Again, brokerage firms that specialize know what traders need in a trading platform and will offer the best executions for their clients.

Learning how to trade eminis takes discipline and focus, however once a system is proven, a new trader can quickly become a profitable trader.

Emini Strategy - One Tip That Can Improve Your Winning Ratio Trading Emini Futures

2008-11-11T08:53:00.002-06:00

Finding a winning emini strategy that can consistently generate profitable trades can be difficult in turbulent market conditions that are so common today. Many novice futures traders blow out their entire trading accounts within a couple of months or in some cases, a few weeks because they did not take the time to acquire the knowledge necessary to become successful at futures trading. One of the most common mistakes newly minted futures traders make is believing that a rudimentary knowledge of candlestick charting is all that is needed to be successful. Learning to read candlestick charts is an asset but as is often the case, lack of knowledge often leads to emotional trading or trading on a gut feeling, which almost always results in failure.

Understanding The Emini Futures Players

New emini index futures traders seldom realize that in order to be successful they must learn to compete against the most knowledgeable and informed people in the financial markets. Anyone that has traded emini futures know that there are big time players in the futures markets against whom the new futures trader must compete. Watching a live time and sales ticker reveals the big time players by the amount of contracts that are bought and sold within individual trades. Make no mistake, in order to compete, the new futures trader must have the tools necessary to compete and win in this highly competitive market.

How Does A New Emini Trader Learn To Be Successful?

The largest problem to overcome for new traders is the emotional aspect of trading that is so closely associated with failure in trading. The human emotions of hope, greed, desperation and uncontrolled competitiveness have done more to blow out new brokerage accounts than anything else. Complete removal of the emotional aspect of trading is recommended and implementation of an entirely mechanical system that signals the trader when to execute buy and sell orders is the emini strategy that is most utilized by successful and profitable traders.

Trading with a proven mechanical system and following the rules associated with each individual system in trade execution will greatly improve winning ratios since trades are executed based on formulas and signals generated by the system rather than emotion or gut feelings felt by the trader. Mechanical systems are utilized as an emini strategy by successful traders.

Emini System Trading | What Do Most Successful Traders Have In Common?

2008-11-08T05:48:00.003-06:00

What is the one thing that most successful emini index futures traders have in common? They are proficient at emini system trading. Profitable futures traders have learned that in order to win at a very competitive business, they must have a tool that will allow them to compete and win.

They have either developed their system themselves or they have adopted or purchased a successful system from other traders. New traders don't have the experience or knowledge to design their own system and most do not have the funds to sustain their trading account as they deal with the learning curve that is required for index futures trading. This is why it is so important for a new trader to adopt a successful system utilized by other traders that has proven to be a winner.

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2008-09-22T09:56:00.008-05:00

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