Articles by David S Adams on ArticleSnatch.com

E-mini Trading: The Trouble with Trading Gaps

Sun, 01 Jan 2012 17:10:06 -0500

It is not unusual to hear individuals ask about trading the “high probability” gap trades. It seems that there is a perception (by some traders) that e-mini gap trading falls into the sure-fire trade class of trades. Note: I have yet to locate a sure-fire trade in several decades of trading. In my experience, gap trading is nothing near a high probability trade. To be sure, for e-mini scalping traders, nothing could be farther from the truth. It’s true that the market tends to fill gaps, but the timing of a fill can be elusive. It may take hours for the gap to fill, or the fill may take place several days later. For a scalper, the notion that gap trading is a high probability endeavor is a misnomer. That being said, there are days when intra-day gaps are filled almost immediately, which can lead one to think that this e-mini trading behavior is the norm. In my trading, I have found that gaps occasionally fill at the onset of trading, but this trading behavior is hardly the norm. **End Summary** Topics: trading gaps]]> gap trading]]> e-mini trading]]> e-mini trading gaps]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Surprising Anomalies in E-mini Trading and Trend Lines

Sun, 01 Jan 2012 01:58:44 -0500

I’ve been writing some about trend lines lately and noted my observation, in several of the articles, of the declining use of this valuable charting tool. I don’t have any illusions that a couple of articles by a relatively unknown author will have any effect on the use of these lines; but if just a couple of traders see the value of trending lines and e-mini trading, then I suppose I have done my job. Trend Angle You would think that a sharp e-mini trend angle (one more than 60 degrees) would result in a longer sustained e-mini trend, on first consideration. But several authors (Bulkowski and Murphy) along with some less comprehensive back testing on my part, has shown that sharp trend angles generally result in significantly shorter trends. (and hence, less profit) I thought about this some, and the result makes sense in that a large number of traders are required to simultaneously trade in the same direction in order for the trend to continue at a sharp angle; **End Summary** Topics: trend lines]]> e-mini trend]]> e-mini trading]]> trend angle]]> price rejection]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: Support and Resistance and How it Effects Your Trading

Sat, 31 Dec 2011 01:38:26 -0500

In a recent article I noted that I felt that the important indicator on my chart wasn’t an oscillator, or indicator or a set of moving averages. I like trading indicators that help me understand e-mini trading in real time. I can think of no better real time trading experience than watching price action move toward a known area of support/resistance (SAR) and evaluating what the possible outcomes may be when price collides with support lines or resistance lines. To be sure, there are several; possible outcomes when price and SAR meet: 1. The price movement may hit SAR and reverse course. We will talk about why this may happen later. 2. The price movement may hit SAR and continue upward or downward, depending on whether we are describing support or resistance. 3. Finally, the price movement may pause for a short period of time, and move through or reverse course at the SAR lines. As an e-mini trader, your ability to decipher SAR related variables like the strength of price rejection, breach probability, or SAR strength will have a profound effect upon your profitability, or lack of profitability. **End Summary** Topics: e-mini trading]]> support]]> resistance]]> support and resistance]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: Is Support and Resistance Really That Important?

Wed, 28 Dec 2011 00:06:24 -0500

In the world of trading, experts sputter about Donchian Channels, obscure oscillators and indicators are named in a manner in which I can scarcely pronounce. Make no mistake about it; there is an e-mini chart pattern and indicator wrapped into a neat package that stands head and shoulders (no pun intended) above the self-important sounding chart patterns and oscillators whose names sound a tad too grandiose. Given a choice of just one e-mini trading indicator/chart pattern I would select, hands down, support and resistance. In my little world of trading, support and resistance (SAR) reign supreme. So you ask me, “What is this support/resistance thing all about, and why do you think it’s so gosh darn important?” Let’s start at the beginning, and give this nebulous idea we call support and resistance some substance and placement in relation to its placement on a typical trading chart. Support can be defined as an area on an e-mini trading chart where overpowering demand halts a decline in price. Resistance, on the other hand, is an area on an e-mini chart where overpowering selling pressure halts a rise. **End Summary** Topics: e-mini trading]]> e-mini trading chart]]> e-mini chart]]> sar lines]]> support and resistance]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: Trendline Breakouts, Breakdowns, and Volume

Sat, 24 Dec 2011 15:36:40 -0500

The last several articles I have written are a series of short articles about trend lines and how to use them to trade e-mini contracts. It has been my observation that there has been a steady decline in the use of trend lines, which are one of the effective tools in my trading arsenal. Trend breakouts and breakout volume share two important factors (among a list of other important variables) in shaping the likelihood of a successful trend breakout or breakdown. For obvious reasons, volume in a specific direction is a key ingredient in a successful trade. There is one point of clarification that I want to emphasize from the onset, though; beware of breakout or breakdowns originating from continuation channels. It is my experience that most channel breakouts (BO) and channel breakdowns (BD) tend to start with a bang and fade back into the channel. Of course, at some point the BD or BO from the consolidation channel will succeed, but the successful BO usually does not occur prior to several unsuccessful BO and BD attempts. **End Summary** Topics: trend lines]]> e-mini trading]]> trendline breakouts]]> breakout volume]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Understanding Trend Lines in E-mini Trading: Types and Angles

Mon, 19 Dec 2011 23:55:15 -0500

I make it point to sketch in a trendline on the e-mini charts I trade. I don’t use the automated trendline programs that have become very popular of late. No, I prefer to draw my trend lines manually using the tops of each bar range, as oppose to drawing trend lines based upon the close of each bar. I feel I get a better understanding of the e-mini chart price movement when I employ a manual method for drawing lines; or maybe I have been drawing them in this fashion for so long that it is force of habit. Either way: I draw my lines by hand. Trend lines can be classified in two distinct categories: 1. External Trend lines: External lines are, by far, the most common line most traders employ. The technique for drawing this flavor of e-mini trendline is similar to playing “connect the dots.” When drawing an up sloping trend line, a trader will connect the valleys of a rising trend. Of course, when the price action violates, or passes through the line, the potential for a trade arises. Down sloping trend lines are draw in exactly the opposite fashion of up sloping line. **End Summary** Topics: trend lines]]> understanding trend lines]]> drawing trend lines]]> e-mini]]> e-mini trend lines]]> e-mini trading]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: An Introduction to Trend Lines

Sun, 18 Dec 2011 18:28:07 -0500

Most e-mini traders with even a small amount trading experience quickly note that the market is broadly moving up or down, usually in the familiar zigzag pattern. Despite the undulations in the movement of the market, it is relatively easy to spot the direction the market is moving. Note: For the purpose of our example, this article will assume that we will be working with a market that is moving in a downward trajectory. If you were to draw a line that connects the peaks of this downward movement you would end up with a straight line. This line is called a trend line and it can be one of the most useful tools in your trading arsenal. I believe that the most important point I can make is a simple one; when the price action moves through an existing trendline it represents an initial indication of a potential trading opportunity. I want to make it clear that a simple break in the trendline does not automatically mean that it’s time to initiate a trade. No, there are specific methodologies for taking advantage of these movements through the trendline. **End Summary** Topics: trend lines]]> e-mini trading]]> drawing trend lines]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: Where Have the Trend Lines Gone?

Sun, 18 Dec 2011 14:28:17 -0500

As I look over the myriad of e-mini trading charts I receive from past students, friends and interest bystanders I have noticed that the diminutive trend line is often missing from the chart. I am not sure when the decline of the trend line began, but I have noticed that other trading indicators seem to have become more “in vogue” for traders than the simple trendline. In my formative years of trading, which are far enough in the past to become a bit embarrassing, the trendline was a key component of any chart. They were (and still are) one of the primary means employed in deciphering the meaning of the price action of any chart. While there are still a large number of traders who still use trend lines, it seems to me that the trend (no pun intended) toward indicators and oscillators for interpreting e-mini charts has relegated a valuable tool in trading from the forefront to a less important role in trading, especially when trading e-mini contracts. I cannot offer any particular insight into why the current generation of e-mini traders seem to put less stock in trend lines than past traders; **End Summary** Topics: trend lines]]> trend line]]> e-mini trading]]> trading trend lines]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: What Are My Real Chances of Being a Successful Trader?

Thu, 15 Dec 2011 00:38:44 -0500

When chatting with individuals who have heard that e-mini trading is a great way to make a living, I am invariably asked if they really have a chance of succeeding in e-mini trading. In my opinion, there is no more difficult question to answer than this simple inquiry. Without knowing an individual’s skill set there is no honest answer for me to summon. If you want to consider your chances from a straight probability standpoint, the chances are you will fail miserably. Depending upon which source you care to quote, anywhere from 80-90% of all new traders have depleted their e-mini trading account within three months of initiating their career. But this particular question goes a step further than “will I be in the business after three months?” I believe that individuals are asking whether they will be consistently making money from the onset of their e-mini trading career; and my answer to that question is always unequivocal; probably not. As an individual who is engaged in the business of training individuals to be successful traders, you might find my response a bit startling. After all, countless e-mini trading websites tout potential earnings of 100-300% a month. **End Summary** Topics: e-mini trading]]> e-mini trading career]]> trading]]> e-mini tradi]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Peaks, Valleys, Oscillators and other E-mini Trading Delusions

Tue, 13 Dec 2011 23:13:48 -0500

I can’t deny there is an unmistakable thrill in picking that exact moment the price action on an e-mini trading chart peaks and the trend changes. Of course, the thrill is a rare one for me because it is always accidental. I don’t try to pick the price or time when the market will peak; along the same line, I don’t try to pick when the market will bottom out. There may be some very intelligent e-mini traders who have some innate ability to ascertain these moments; I am not one of them and neither are the overwhelming majority of traders in the market on a given day. Of course, there are a significant number of traders attempting determine when a peak or valley may occur. The number of traders who will perfectly time the appearance of the elusive peak in a rally is small, no; the number of traders who will discover the peak of a rally and profit from that discovery is smaller than small. In my experience, it’s a small fraction of the total number of those who seek to find the peak. **End Summary** Topics: e-mini trading]]> e-mini trader]]> trading]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

When the Newscasters Are Screeching Hysteria, How Do You Trade E-miniâs?

Tue, 13 Dec 2011 21:10:33 -0500

It’s not unusual for one of my students to come to the e-mini trade room after watching one of the financial channel broadcasts in a hysterical state. He or she may have heard a newscast that the market is going to surge and are determined to get long at the opening. I usually listen impassively, then trade the opportunities my chart offers. My father once told me, “things are never as good as they seem to be, nor are they as bad as you think they are.” It’s great advice. The sky has never fallen, and our streets are not paved with gold. No, our plight lies somewhere between those two extreme opinions. That being said, why does the media hype mundane events into catastrophic proportions? I am not an expert on media hype, so I cannot answer that question with expert authority; but I suspect that sensationalism sells magazines and draws people to watch television so the networks can sell commercial time. That is just my opinion, however. I do know that the media plays no part in my approach to trading e-mini contracts. **End Summary** Topics: trade e-minis]]> trade room]]> e-mini trade room]]> e-mini]]> tradin]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

3 Tips For Success With a Small E-mini Trading Account

Tue, 13 Dec 2011 00:28:49 -0500

I recently wrote an article stating one of the major hurdles new traders face in starting a career in e-mini trading is an undercapitalized trading account. Small e-mini trading accounts leave a novice trader with scant room for failure because a series of losing trades can deplete an account in short order. That being said, there are some tips that greatly improve your chances of success when trading an undercapitalized account. I would characterize a small or undercapitalized e-mini trading account as one that has a balance between $2,500 and $7,000 dollars. I must admit that this definition is, at best, an arbitrary definition for a small trading account. In my experience, the smallest account balance most brokerages will accept is $2,500. This definition excludes the newer micro e-mini accounts being offered, which accept initial deposits as low as $500 and trade with increments of 1 dollar/tick. As an aside, I highly recommend these small accounts for new traders as they allow the trader to trade “real” money while learning a specific e-mini trading methodology. **End Summary** Topics: e-mini trading]]> e-mini trader]]> futures trading account]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Trading Emotion-Driven E-mini Markets

Tue, 13 Dec 2011 00:25:55 -0500

Any trader who has spent even a minimum amount of time reading about trading psychology has read, over and over, about the evils of allowing your emotions to influence your potential trading decisions. As an e-mini trader, it doubly difficult to control your emotions when the markets themselves take on a very emotional nature. It sometimes seems a doubly cruel joke when markets behave more emotionally than even the most emotional e-mini trader. It is not particularly unusual for markets to trade in an illogical fashion; but there is generally some semi-rational explanation for moves that, at face value, do not seem to make sense. On the other hand, we are in some unique times in the e-mini markets. In several decades of trading I have seen some dire circumstances in the United States economy: the 1987 market crash comes to mind; the meltdown of the dot.com stocks; or the sky-high inflation of the early 1980 era and Paul Volker dramatic inflation fighting antidote. But I have never seen a constellation of world-wide events with the potential for catastrophic consequences as we currently face. **End Summary** Topics: e-mini trading]]> e-mini trader]]> trading]]> average true range]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, along time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: How Much Money Do I Need to Get Started?

Tue, 29 Nov 2011 20:23:31 -0500

It is my belief that one of the major causes of new trader failure is entering the e-mini trading arena with poor training and undercapitalization. These two problems in tandem exacerbate the problems each problem causes in its own right; in short, the sum of these two problems is greater than the problem caused by one of the problems alone. Why? Traders who are poorly trained have one unmistakable trait; they tend to overtrade. I have observed this phenomenon throughout the course of my career. Traders who lack a solid e-mini trading foundation tend to trade too many contracts and trade too often. Of course, this issue alone is enough to get the average trader on the red side of the ledger, but add undercapitalization to the equation and you have the recipe for a very short e-mini trading career. I believe that starting with less than a good trading course and proper sized account is essential to succeed: • While many traders start with accounts as small as $2,500, this puts undo pressure on a new trader to make every trade a winner. **End Summary** Topics: e-mini trading]]> e-mini trader]]> futures trading account]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, a long time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: Can We Still Trade in the Current Volatile Market?

Thu, 24 Nov 2011 22:46:15 -0500

With the price action in the e-mini market ricocheting about in unpredictable patterns, it seems that scalp trading is more difficult than ever before. I’ve listened to countless traders complain that the e-mini price action is too volatile to trade, and have suggested they are going to take a break from e-mini trading for a while. We could spend a good amount of time talking about the European debt crisis, our own housing debacle, high unemployment or a host of other problems that are currently having a negative effect on the marketplace. That is not the purpose of this article, though. As a trader, I trade most conditions in the market, except when the Average True Range (ATR) exceeds the reasonable stop/loss points I employ. However, a bit of volatility is not enough to deter me from trading if the volatility is within the parameters of my risk tolerance. It’s true that the usual trend followed by a consolidation channel-type of formations are far and few between. The market seems to be in perpetual motion, often times in very unpredictable directions. **End Summary** Topics: e-mini trading]]> e-mini trading system]]> e-mini market]]> price action]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, a long time institutional investor, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-mini Trading: In Difficult Economic Times, is it Wise to Consider a Career in Trading?

Thu, 24 Nov 2011 21:26:08 -0500

We are currently experiencing unique and troubling times in our economy and many Americans are operating under challenging circumstances. To be sure, many individuals are searching for a good job, a decent wage, and proper housing. So, the notion of entering a career as a trader, specifically an e-mini trader, would seem to be out of the ordinary and risky. There is tangible risk in becoming an e-mini trader; that cannot be denied. According to various sources, as high as 90% of all new e-mini traders fail within the first three months. Sound scary? It ought to be a deterrent from entering the e-mini trading arena without proper preparation. Trying to take on the markets without proper training is the recipe for failure. The question is: Why do so many new traders enter the e-mini trading career with so little preparation from professionals or personal mentors who might be veterans of e-mini trading? With proper preparation you can lower than 90% figure to one that is very manageable. Learn specific methodologies and practice on a simulator before charging into the markets. **End Summary** Topics: e-mini trading]]> e-mini trader]]> e-mini trading career]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-Mini Trading: Trading Channels and Trends with Success

Sat, 15 Oct 2011 22:53:09 -0400

Upon close examination, e-mini traders find that price action falls into two broad categories. The majority of the time the market is range bound or forming a continuation channel. At other times, however, the market breaks out of these continuation channels and begins to trend up or down. I have yet to find a satisfactory definition for the term “trend,” and I have been working on it for nearly 25 years. At this point in my trading career I prefer to view trends as any sustained directional movement either up or down. Of course, I am well aware of that many “purist type” e-mini traders have mathematical criteria, or specific definitions of just is exactly what constitutes a trend. I would expect these individuals to review my broad interpretation of trending behavior as faulty. In general, I have found most of these “purist type” definitions unsatisfactory for my scalping trading technique. I am interested in only small segments of the market and tend to view trends as I referred to them early in this paragraph. **End Summary** Topics: e-mini trading]]> trading channels]]> trading methodologies]]> e-mini traders]]> channel trading]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Do You Understand What Your E-mini Futures Clearinghouse Does?

Sun, 09 Oct 2011 01:04:47 -0400

When you place an e-mini trade, a chain of events initiates from your individual broker to a clearinghouse; the clearinghouse acts as a third party that steps between the buyer and seller (the two original e-mini traders in this transaction) and assumes the legal counterparty risk for the transaction. This process of transferring the trade title (from the brokerage) to the clearinghouse takes place without any trader participation, and is a seamless operation that generally leaves the trader unaware of the actual process that takes place after he or she executes a trade. A clearinghouse performs a number of important and necessary backroom accounting, risk management, and bookkeeping operations. Some of those operations include functions like: • Clears all trades from its member clearing firms. • Provides settlement services in traded markets. • Provides third party valuation of trades and held margin funds. • Establishes margin requirements. • Purpose is the lessen default risk of member firms not honoring their financial arrangements. As you have probably surmised, the clearing house is the structural backbone and gate keeper in the e-mini market, and all the other markets the clearinghouse facilitates. **End Summary** Topics: e-mini traders]]> futures clearinghouse]]> e-mini futures]]> e-mini futures clearinghouse]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

Is It Best to Invest for the Long-Term, Intermediate Term, or for a Short Term?

Sat, 08 Oct 2011 00:48:57 -0400

There can be little doubt that investors have been pondering this question since the general public began active participation in stock investing. To add to the dilemma, Wall Street and Wall Street affiliated firms spend massive amounts of money pushing the newest and hottest investment-of-the-week. I think that it is important to realize that Wall Street’s goals and investors goals are not necessarily congruent. Of course, there has never been a shortage of scandals that have bedeviled Wall Street, and investors have generally ended up on the short end of the deal. Whether it was the recent financial meltdown that was a direct result of improper mortgage risk assessment by Wall Street bankers whose primary goal was to repackage the mortgages and sell them at a profit, as the recent credit evolved, or the never ending push to bring new, innovative, and profitable investments to the investing public, regardless of the welfare of the public. You must understand that Wall Street is dedicated to making money for its shareholders, and is definitely not worthy of investors blind trust. Against that backdrop, we must attempt to answer the question posed in the title of this article. **End Summary** Topics: long term investment]]> short term investing]]> short term inves]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

The Number 1 Skill New Traders Must Master to be Successful in E-mini Trading

Thu, 06 Oct 2011 22:55:48 -0400

From the onset, let me admit that e-mini trading requires a broad and varied skill set; therefore, identifying a single attribute that is the prime contributor for successful in trading paints a wide swath. Having watched a large sample of traders my trading career, I think there is a single variable that plays a major role in determining the new e-mini traders level of success: Emotions. Let me assure you that this will not be another in a long list of articles that tells you that you have to learn to trade without emotion. As human beings, we are prone to be emotional in stressful situations, or at the very least, we have emotional thinking and impulses that may or may not play a role in our trade decision process. But trade without emotions? It is my belief that emotions are a natural part of our thinking and blocking out emotions and impulses is a ridiculous suggestion, at best. On the other hand, we don’t want to make decisions on emotional impulses; yet we still have to make trading decisions (even with these troublesome emotional thoughts bouncing about our cranium. **End Summary** Topics: e-mini trading]]> trading plan]]> trading emotions]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

What Can You Expect From an E-mini Trading Room?

Wed, 05 Oct 2011 22:52:20 -0400

It is my general observation that e-mini trading rooms vary widely in their approach to trading and implementation of their trading method. If you are looking to learn how to trade, then I would find a room geared toward teaching new e-mini traders methodology and technique. On the other hand, some trade rooms are designed specifically to make live trading calls for room members to initiate copy-cat trades on their own accounts. My view is that trying to copy another trader’s system can be difficult and tedious. I have seldom seen room members match the daily totals the trade room moderator claims to have earned. On the other hand, there are some outstanding rooms which make clear calls that are relatively easy to follow; if you have no desire to learn to trade, live trade calling could be a good choice for you. In a teaching trading room, there are some important things to look for and will ultimately enhance your chances for success. Some issues that I might want to investigate are: • What are the course designer’s qualifications? Does he or she have any professional trading experience or other relevant experience? **End Summary** Topics: e-mini trading]]> trading room]]> e-mini trading room]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-Mini Training: A Common Trade That Often Ends in Disaster

Wed, 05 Oct 2011 00:23:39 -0400

If you have traded for any period of time, you start noticing where other e-mini traders are setting up to take trades. Sometimes I am very impressed with the positioning some traders utilize to enter trades; sometimes not so much. Of course, in my personal trading (and I am sure that most traders feel this way) I have specific trades that have been successful for me; on the other hand, I have several trades that many claim to be solid trades that I just cannot seem to execute properly. But there is one particular trade that I see on a regular basis, and is usually executed by smaller e-mini traders, judging from the time and sales dialog box. This trade is often referred to as a “bounce” trade and often occurs along important or significant lines of support and resistance. I generally see this trade over the lunch hour and during periods of low volume trading. The trade is a relatively simple one. Often times, when the price has moved through a significant support/resistance line, it is not uncommon to the price action retrace back to the recently pierced support/resistance line and then resume in its original direction. **End Summary** Topics: e-mini traders]]> bounce trade]]> small traders]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-Mini Trading: Is Scalping Dead? Is Swing Trading Dead?

Tue, 04 Oct 2011 21:23:33 -0400

Whenever we, as a country, find ourselves in trying times the “doom and gloom” crowd comes out of the woodwork. I remember my first exposure to this phenomenon came back in the late 1980’s when an author whose name I have long since forgotten wrote a book entitled, “The Coming Market Crash of 1990.” Of course, the predicted crash never materialized and the market enjoyed a profitable decade, followed by a brutal correction in the information technology sector from which many speculative investors have yet to fully recover. For whatever reason, people seem disinterested when the market turns out consistent gains; but it's “all hands on deck” when the market shows signs of weakness or the economy drifts into a recession. Obviously, there is money to be earned in the “bad news” line of business. Things are never as good as they seem to be, and things are never as bad as they seem to be. I have no idea who first introduced me to this very simple concept; by and large, though, I think it is a cliché that is well worth remembering. **End Summary** Topics: e-mini trading]]> swing trading]]> swing traders.e-mini traders]]> scalping]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

E-Mini Trading: Leverage, the Dog That Bites

Mon, 03 Oct 2011 17:50:41 -0400

One of the most important factors in attracting new traders to the e-mini markets is the ample supply of leverage you are allowed to trade. While e-mini trading is not the most leveraged trading in the world, you'll find an average in the area of 50:1. Wow! At first glance, most traders are encouraged or excited about having the opportunity to trade an exchange traded equity with such high leverage. There is one very important maxim that is important to remember when working with leverage; leverage maximizes your return on investment, and it also maximizes your loss on investment. Did you read the second half of the prior sentence? It's important to remember, so I will say it again; leverage maximizes your loss on investment. As you can see, I am not a huge fan of overusing leverage; many new e-mini traders exit the trading business because they overtrade or trade too many contracts. **End Summary** Topics: e-mini trading]]> leveraged trading]]> e-mini trading business]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.

3 Important Things New E-mini Traders Can do to Succeed

Sun, 25 Sep 2011 23:25:46 -0400

The failure rate of new e-mini traders is disturbing. According to various sources, 90% of all new traders are out of the market within 3 months, their trading account balances exhausted. There can be little doubt that e-mini trading presents a challenging skill set to learn and execute, but there are a number of factors that are well within the a new e-mini trader’s reach that he or she can control. In my experience, a good deal of failure centers around three important factors that directly impact every new trader’s career. They are: • System • Communication • Experience There are a wide variety of trading systems out there from which traders can choose. Some of the programs are very large, some are famous. There is no correlation, in my thinking and experience, between popular systems that can run more than $7-10000 and widely advertized and other systems which are based on sound trading methodology. I’ve already written several articles on finding a good trading system, so I will not burden this article with that lengthy topic. 1. **End Summary** Topics: e-mini traders]]> e-mini trading]]> trading]]>]]> About the Author: ]]> Real Live Trading Doesn't Lie. Spend 3 days with me, in my trading room, and see if you are one of the many that can profit from a fresh and unique view on trading e-mini contracts. Sign up for your free trading experience by clicking here.