The eMini futures markets are both seductive and treacherous. On any given session a trader can find numerous opportunities. Although, along with opportunities come many hazards. In fact, navigating your way through an eMini session, without losing your hard earned capital (or your shirt) is much tougher than it seems. Whether you’re trading the Russell emini, the s&p, the nasdaq or the dow, here are some basic key pointers that you will want to pay attention to if you are serious about your futures trading.
First, limit your trading to a consistent time period. I personally will only trade during the first 2.5 hours during the morning. And I will often be finished much sooner. Trading the evening session can also be good. The important rule here is to define your session and stick to it.
Second, create a dynamic goal setting strategy that allows you to quit positive on your terms. I try to get 2 winners and have a positive result. Whether I am up by 1 tick or 4 points, I take what the market will give me while quitting positive on most sessions. I will keep trading until I have achieved that goal or I hit my stopping time. That moves my account forward on a consistent basis while not giving back my winnings to the market. I quit on my terms in a dynamic way.
Third, find a good futures trading system that produces an real edge in the market, and learn it well. Manually backtest it thoroughly and then create your trade plan from what you discover. This will eliminate guesswork and will separate you from most other traders, who incidentally, fail more than they succeed.
Fourth, limit your risk. Be adequately capitalized. Never risk more than 2 rule, you would only be able to trade one contract. 2 x $100 = $200 = 2% of $10,000.
Finally, I would recommend that you find a mentor. One simple way to do this is to become a member to a good signal service. Find a signal service with a good reputation and a long term winning record. Also, and this is very important, try to find a signal service that actually trades a futures trading system that you are interested in trading yourself. That way, you could kill two birds with one stone, learning not only how to trade the strategy correctly, but also learning how to trade the eminis in general, with confidence and with the support of the signal service host. Practice until you have developed your ability and confidence to trade in real time.
Troy Noonan a trading coach of NetPicks has traded for over 15 yrs and offers free educational resources, live signal services, and proven trade systems. Free 2-week signal service trial: Free Trial
