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E-mini Trading Tips: 3 Ways to Ensure Success

|Includes:EnergySolutions, Inc. (ES-OLD)

It isn’t easy avoiding all the garbage information that leads inexperienced traders down the wrong path.  There are thousands of sites out there that back a certain set of indicators or system as the Holy Grail.  Sifting through all that information can be a daunting task for any trader.  The unfortunate part is that none of these systems can get a trader any closer to success if they ignore these simple tips below.

The key to becoming a successful full time e-mini trader is to be able to profit in any market condition or cycle.  To do this you need to be able to think for yourself and understand why the market is operating as it is.  This requires a simple and adaptable system that can be modified on the run.  Being successful also requires hard work.  Trading isn’t easy and there’s no way to cheat the system but if you keep these simple ideas in mind while trading you should see immediate improvement in your results.

Know Before You Trade

Trading is about probabilities.  You need to know what your odds of success are before you place a trade so that you can calculate whether or not it is worth the risk of entering the market at that level.  You have to know your stop placement and profit target before you initiate any new sequence.  Doing so will keep you honest and prevent you from over trading by forcing you to scrutinize each possible set up.

Don’t Listen To Your Gut

Instincts can kill a trader.  It requires years of screen time and trades to be able to develop a feel for the markets.  Even then a gut feeling can lead you astray.  Trade off of your system and not off of what you feel the market is going to do.  Following this rule will force you to stick to the probabilities and in turn make you a more consistent trader.

Stick to What You Do Best

If you are just starting out in e-mini trading find an instrument that matches your goals and risk tolerance and stick with it.  Become a master of that symbol before moving on and trying to branch out your trading.  Inside of that market develop and focus on one or two strategies.  Do not try and trade a number of different systems all at once.  Fine tune your trading skills and technical analysis abilities by looking for your specific trade set ups.  Over time you will be able to look back to see if you are improving by comparing your trade results.

The majority of people who are involved with e-mini trading fail.  They fail because they missed the big picture and tried to focus on the irrelevant details.  Find out what works for you and stick with it. Exploit your edge when you can and when you can’t, practice patience and remember that the market and the set ups will be there tomorrow. 

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Disclosure: Short ES

Stocks: ES-OLD