Do You Find Yourself Taking Too Many E-Mini Trades? You Might Be Overtrading
This article is really about high probability and low probability e-mini trades. The failure to distinguish between these two types of trades is often the cause of overtrading. Overtrading tends to chew up profits because you incur an inordinately high level of commissions. I will say this; your broker will love you, as he gets paid by receiving a portion of the commission charges to your futures trading account.In Fast Moving Markets, Why Are You Using Lagging Indicators?
In recent weeks we have seen a good deal of volatility in the markets. I suppose I should point out that it is not uncommon to see volatility at any price level. Volatility is part of the environment in which we work. Knowing the market is volatile, I would assume most traders want to be entering trades at the earliest possible time, once the trade setup is confirmed. Further, I suspect most traders seek to exit before the market backs up and reduces your profit or moves fast enough to have the trade go into negative territory.The Randomness Principle, Tight Stops, and E-Mini Trading Failure
If ever there was a topic that will send experienced traders to arguing it is how to measure and account for randomness and setting stop loss/profit target levels. I also couldn’t talk about randomness without recommending reading Dr. Burton Malkiel’s “A Random Walk Down Wall Street.” Dr. Malkeil emphatically argues that past movement cannot be used to predict future price movement. Needless to say, you will not find this tome in most technical traders libraries.E-Mini Scalpers, Probability, and Why Great Set-Ups Fail
We all have our favorite “go to” set-up and when that set-up presents itself I sometimes start counting my chickens before they hatch. Generally, after taking what I believe to be the perfect entry and watching it nose-dive the wrong way I start mumbling to myself, “that trade always wins, what’s up with it losing?” It is important to understand that even the best trade has the potential to fail miserably.I Was Wondering What Ever Happened to Chart Reading?
When I started in the trading business (back in the olden days, as my grown children delight in reminding me) I was told that I would not be worth a pinned nickel until I spent 10,000 hours reading charts. Being an obedient youngster on Wall Street, I did what I was told and sketched charts with trend lines, regression channels that expanded and regression channels that were narrowing, support and resistance, and a dozen other suggested chart notations until I thought I was going to lose my one-cell brain.Aside From Money and Equipment, What Does It Take To Be an E-Mini Trader?
The title of this article could easily be, “this is where the rubber hits the road.” A computer cannot make you a good trader and having a large trading account won’t make you a profitable trader. You will have to make yourself a profitable trader and that is no small feat. It takes dedication, perseverance, and just plain hard work to achieve your trading goals. Are you up to the task?Do You Have to Be Brilliant to Trade E-Mini’s?
One of the better traders in my room has been there for several years. I can still remember when he was considering whether or not he should start trading and he asked me, “I only have a high school education, do you think I am smart enough to be a trader.” Let me state unequivocally that I have found absolutely no correlation between education attainment and trading ability.Can You Trade Polynomial Regression Bands and Standard Deviations?
Polynomial regression bands (PRB) have been around for quite a while, though I know of very few traders who use them in earnest. I happen to be a strong advocate of reversion to the mean trading and PRB’s are my primary tool in determining when and how price action reverts to the mean. There are plenty of other bands in trading; Bollinger bands and the Keltner channel come to mind. But for my purposes, I customized the traditional PRB into something that fits my needs perfectlyHow to Trade the Market During the Summer When You Don’t Trust the Price Action
There are few times during the year when trading is more frustrating than the summertime. The price action tends to be clipped and erratic and I generally lose any confidence that a move will follow through in a normal fashion. In short, traders tend to lose confidence in what are normally “automatic” setups because the market has trouble maintaining a consistent order flow in any direction.Are Proprietary Indicators Necessary to Succeed in E-Mini Trading?
A large number of trading operations require prospective members to purchase a set of indicators that the educators claim are “absolutely necessary” to trade successfully. These indicators often run thousands of dollars and bear a striking resemblance to any one of a number of well-known indicators that can be had on the internet for little or no cost.Is the Summer a Good Time to Learn to Trade?
Not all summer time trading is just plain miserable, but this summer is like many others in that the volume has slowed down along with the price action. And yes, so far the trading has been miserable. Trading e-minis during these times can be just plain brutal, with hours and days passing without any substantive movement up or down.Dyed in the Wool Backtesting and Chaos Theory – A Union Destined to Fail
At one time in my trading career backtesting was all the rage. The premise was relatively simple; if something has worked in the past it is bound to work in the future. In short, all you need to do is adjust your backtesting parameters until you optimize a result that produces consistently profitable trades. Of course, most traders who utilize this trading methodology are often stunned (and I mean extremely stunned) when all the careful data analysis does not translate to profitable trading, especially if you are an e-mini scalper.