Day Trading Online

Most that trade futures have the capacity to develop winning styles . Of course , most cannot resist deviating from their styles that customarily win for them . A winner sticks to the style of winning understanding that patience and perseverance are needed. Learning from a day trading online, a winner has the resilience to continue waiting for the perfect opportunities that his style is designed for. A winner is foremost a controller . Loaded trades is where he loves to put his focus . He’ll make a list on paper for making a certain trade . A winner realizes that there are very few sure thing trades the best trades are never overlooked by him and he sticks with good positions . It pays to be disciplined !

He recognizes his imperfections, but taking a turn is his intent and doing it doesn’t include an easy way. He is a thorough assessor of sound fundamentals . Many times, he’ll discuss all the aspects of the markets he’s involved with. Winners smell fear and ruthlessly act. The human element of the market is analyzed by him.

His style is outstanding. He’s calm, at peace, and often quiet. He may look bored on the outside . (He probably is). His eyes sparkle . Life and people are enjoyed by him. But , be careful if you interfere with his plan or get too close to him - attempting to extract information, or an idea of what he’s doing , - to ask him about his opinion on the market,- what is going to happen ! See what happens if you try to bug him . Otherwise, he will shower you with his sparkling ambience .  These are the signs of a day trading online graduate.

He both recognizes and develops his skills of behavior . He possesses the tremendous self-control needed to override rehearsed and developed sterile habits .

They are pragmatists . They will never hold a position during a vacation . At times they take an exit from the market to rest, to count profits and re-appraise situations . He learns the success’ cause (not his failures). He records its persistence . He knows that it’s a winning style that pays . He knows and controls where his place is in the environment. He realizes that huge profits can be earned by those going against overall opinion and accepting that emotional risk. He is wary of trend bucking , but knows the great opportunities offered. He knows when to strike , - striking with L analysis of his own and the reaction of the market to fundamentals. Tomorrow’s price changes are outguessed by him , [PL charting], because they usually depend upon the news of tomorrow or the news that is anticipated;- weather changes, strikes, or a newly released crop estimate. The awareness and discipline he has results in a low aversion to taking risks. A day trading online show’s that he’s practical . You don’t have to let him know that those who have low aversion to risk , whether optimistic or pessimistic , are most likely to profit .

Technical Analysis Explained - Pinging…What Is It?

Even successful traders forget to adjust trading styles to the changing market conditions ; they find one pattern in which they are successful much of the time and they stick to it through thick and thin . When they lose because their pattern isn’t compatible with the market , they simply feel that those are the breaks that happen and just accept the loss. They seem to think their technical analysis explained all possibly trade styles, but this isn’t right.
If a trader can identify the state of the market , that is, the type of trading going on now and the type of trading expected , he or she can improve their returns very considerably . The reason is that trend trading techniques should never be applied to congestion trading.
The state of the market can be ambiguous at times . There wouldn’t be a market if things always were clear , since traders would not have opinions that were different, and trading in the same direction would be done by everyone all the time.
One example of an ambiguous state is when a trend seems to have exhausted its energy and is ready for a turn , and momentum indicators roll and look like they’ll be going from trend to congestion entrance. But the signals are not quite clear enough to go all in on a big position.
In this situation traders can go with pinging. You attempt to hedge your bet when you using pinging. The anticipated turn is where they place their single direction trades , but they don’t hold them too long , and gets out at the first sign of lower time period support . The market usually manifests a pumping action at market turning points, with comparatively large and volatile swings in both directions as traders around the world that have various opinions take opposite opinions . When pinging, a trader can repeatedly go with multiple positions as the market goes from resistance to support and then back . Instead of riding the market both ways, and rather than placing a large bet on the anticipated new direction and holding on for dear life , it is as if technical analysis explained to the trader that the market could be pinged , taking smaller positions in one direction only , and when price reaches short term support, being willing to cover early and quickly .
Pinging will result in significant profits and it has the trader closely in contact with the market as the battle between shorts and longs go forward . Pinging will protect a trader from a too-early , even in a confusing market will allow profits to be brought in when the new direction is uncertain and the attempt to end a trend may fail . Pinging lets traders keep themselves in a position so that when the new trend does settle in and become well established , he or she is already aboard . When you look at it properly, technical analysis explained pinging as one method of entering the market when they aren’t totally certain where the market will go next.

An Emini Futures Trading System Should Contain The Following Basic Elements

There are some essentail requirements when you develop an emini futures trading system and most important of istrading  should be treated as a business. It’s generally accepted upon starting a succeesful business you require a plan, and this is the same in trading. Your trading plan is simply referred to as the building blocks of your futures trading system. It is made up of the trading rules that govern how to react in situations that happen on a daily basis.

Manually backtesting is done by using historical data and applying your trading rules over this data without peaking into the future as this will make you filter trades out because they will be losers. Also you can use ellectronic testing to check out how your system worked in prevoius market conditions which is alot faster and highly accurate.

When historical backtesting is completed you then to test it on a live demo account to see that the futures trading system you have designed is able to replicate the results it acheived in back testing. This may seem a tedious task but essential to develop your trading skills and gain confidence in the system.

The building blocks of your futures trading system are not complete without the following

1. When you determine your trading style this is the first step and a significant one as you need to be able to commitment the required time to the trade your system correctly.

2. Entry conditions are your rules that you apply to confirm a trade has met all the.

3. Risk management is the next step which determines your exposure of your trading capital which is calculated by the size of your trading float and is essential to your success in trading.

4. Exit conditions need to be included in the design of your trading strategy be it to close your position and take profit,even to employ a trailing stop or to move a trade to a position of break even to control the overall profitablity of the trade.

5. Determine your emini futures trading system breaking point by the maximum losing trades in a row or a percentage of equity loss of your trading account balance. This is an essential part of a futures trading system that most individuals forget about in their trading plan.

6. Evaluation of the trading system is needed to confirm rate the system over a specific period of time and to see the futures trading systems overall profitablity.

Developing your own personalized emini futures trading system should be your ultimate objective after completing a training program that will educate you in the finer points of the futures market that you wish to trade. This is faster way to educate yourself as an emini trader and use the skills of a seasoned professional trader.

Why Emini Trading Course

Buying and selling of a security in a single trading day is known as day trading. With day trading spreading across all markets, foreign exchange and stock markets are the major hubs for day trading based on emini ? an index futures contract in stock markets. All day traders are usually well educated about what they are doing and therefore they successfully implement short-term trading strategies as needed. So, emini - a stock market index futures contract - trading requires knowledge and expertise to deal with the challenging and changing. In this article, we provide you some important information about emini trading and related courses to learn how to perform day trading.

Day trading courses help you learn how to perform in day trading business successfully. So, if you are really interested in day trading, you can search for various emini trading courses on the Internet to learn better. Choosing the right emini trading course is important because the level of knowledge and understanding of day trading decides your trading performance. There are certain important aspects and focus area of an emini trading course. However, you should also verify if the course you plan to choose meets the current pace of day trading. In addition, discipline and commitment are considered to be among the pillars of day trading business.

Emini trading courses can provide you knowledge on various critical aspects of successful day trading business. These training courses are designed with all training items necessary for achieving success in day trading. You can also learn to deal with the Forex structure and understand different pricing patterns. Every emini trading requires a particular mindset and approach which together can be called the trading psychology, and therefore, various courses on day trading also cover the concepts of trading psychology and how to maintain a good discipline in the business for making money. You also learn various trading management concepts from trainings and understand how to design a day trading plan. Management of the day trading needs and associated results is another skill that you can develop from day trading courses. Consistency is a major skill set you will need to learn for day trading.

Emini trading courses and day trading trainings are aligned to educate you on how to day trade successfully. Make the right choice from the available emini trading courses. The day trading courses provide you with learning experience of successful day trading business. Learn to do day trading with emini trading courses.

So, visit us today and learn more: Learn to day trade Futures trading

E-mini Day Trading - In The Business Of Cash Flow

 

Emini short-term trading is a daily profit investment business that can be very profitable, but risky at the same case. Many investors see emini day trading as a means to prepare for high intensity investing because it has a low cost of entry, while other people see it as a way to make endless profits. No matter how you percieve e-minis, it can be very profitable if executed the right way. You have four top e mini futures contracts which consist of the sp 500, the DJIA, TF “Russel2000″, and the NASDAQ 100. All 4 of these stock indices can either earn profits for you or bring you to your knees.

When a trader invests money, giving to the market it is the last thing he or she desires. One of the primary things that separate the winners from the unprofitable traders in the day trading world world is knowledge. Many traders try to jump right into the high-speed markets with no knowledge at all and can’t figure out why they are net negative in their accounts. E-mini Academy is a program that has it all whether you are a newbie looking to trade for the first time or a experienced e-mini professional just trying to brush up on your execution skills. There are so many programs out there that promise to make you a profitable trader in no time,   but you will probably invest more money into the course than you make trading which doesn’t turn out to be very smart. It can be hard to find a good emini trading program that has it all, but Emini Academy has all the training you need in one location.

As long as you have the time and dedication, you can be profitable with e-mini trading. Everyone has their guesses about how to become a professional in the trading world, but the truth is that if you can’t commit yourself to it then you will not accomplish it. The bottom line to all this is that if you are trying to decide about trading and don’t want to lose all your money then do yourself a favor and look into Emini Academy.

Part II Trading Congestion Action And Emini Trading

Let’s continue our discussion of congestion action trading in the article series about emini trading.

We cannot exit congestion until we have a new trend run . Without a new trend run, the market is in congestion . A congestion exit is a trend run as put into place by the congestion action that proceeded it..

Let’s take a different approach with an emphasis that is a bit different.

Congestion action can be said to do two different things.

One: It creates strong original confines .

In the second place, strong expanded confines are created .

The congestion entrance bar creates the original confines , which is the first bar of congestion action , and the very next bar known as the second bar of action, and if there is no trend run the third bar . The confines are determined by the lowest low and the highest high of these bars , as are defined by block level and dotted line. These are congestion’s original confines.

Here is should be brought to your attention that in the third price bar of the congestion price , ends up doing one of two things. Price either:

1) Starts a trend run and exits congestion, since the third bar closing on the other side of the PL dot isn’t confirmation of congestion action. The confines of congestion are then determined by the original confines of congestion, . OR…

2) The close occurs on the PL dot’s other side , and congestion action is continued . The confines of congestion in this case are determined by original congestion, as the lowest low and highest high of the first three bars sets out .

Then there is expanded confines.

Well, congestion action can create expanded confines by moving so it is outside of the original confines, providing that there has been no trend run in the meantime . When price leaves the latest confines, the confines of congestion are then redefined. From then on, then congestion exit will deal with this confines that is redefined instead of the original confines .

( Of course, it should be noted , that the original confines can have an effect on price , because any level or line is able to do so, but generally speaking , the true confines can be built through repetitive congestion action , without a trend run appearing .)

As long as there is no trend run, the confines can be expanded . Only when a trend run occurs and the price goes into a trend run can we say for certain that the final boundaries of congestion have been defined .

If you look at Drummond Geometry, emini trading defines congestion in a clear and consistent manner , and provides us with guidelines to help us identify under all circumstances the confines of congestion .

In future articles in this technical analysis explained series we will talk about trade entries and exits in congestions . These clear congestion definitions will definitely become useful .

Can You Actually Make A Job Out Of Day Trading?

Both full time traders and part time traders understand that it’s rewarding to understand the basics of futures trading.. What could be better than working in the comfort of your home and not having the headache of dealing with a boss or rush-hour traffic every day?

Becoming a successful emini day trader takes discipline, focus, and a solid training process. There is a ton of material on the market that will claim to teach you everything in no time, but the truth is that trading futures can’t be learned overnight, and it can be a bit of a headache. E-mini Trading Academy, in my opinion, is the best resource for learning and mastering day trading as long as you put in the time and effort. This program is for anyone from a beginner to someone who has been a successful trader for years. Some traders actually blow out their accounts in a short period of time, giving back profits without thinking twice.. This is almost always because of the lack of knowledge and the urge to make fast easy money. All they see are the experienced traders pulling in cash left and right and it seems to be effortless. All you need is a solid education and some discipline. The Emini Academy is a great resource to get started..

Like I said before, day trading isn’t something you can learn over night, but if you choose E-mini Academy, then the path will be lit up for you and all you have to do is follow it. Again, day trading can be very rewarding but also very risky so if you decide to give it a try then do yourself a favor and get educated before jumping in.

 

 

Maxims And Your Day Trading Online

A technical analysis course will teach you That about anything can be justified with an old saying . There is always an equally plausible maxim that appears to justify diametrically opposed actions . No matter what occurs a description can be provided by a maxim. Many traders choose a maxim that will support their actions. It was Orin Thevault that said that sociologists have named this phenomenon ” selective perception ” . The trader is given some comfort with this alibi when he deals with a smaller profit or even a loss .

The successful trader derides maxims as conventional wisdom , that are general and without value and that have no place in a trading plan . He thinks that trading success requires more than just than the right choice of a maxim.

“Nothing is so useless as a general maxim” .
- Thomas Babington
Lord - Macaulay - 1859

Supposedly, if there was a maxim or rule that was always correct it would be followed to such an extent as to eliminate its validity . Because of human nature, maxims are broken on a regular basis. If a good maxim is had, it probably doesn’t mean a whole lot does it? More than likley it won’t really be paid attention to. Everything can’t be remembered after all. Perhaps Lord Macaulay was really right. However, there are some maxims , which are applicable to good commodity trading . There are some that you should remember because they are profound. Take you’re choice . Really , you should come up with a collection of your own maxims that work out for you and test and question them again and again .

ESSENTIAL MAXIMS TO KEEP IN MIND

The most effective approach to the objective of maximizing results is playing a game that is favorable on a small scale , but still providing a reasonable chance of success , is on a large scale playing a game that is favorable with enough profits coming early in the game to avoid ruin . A game that is unfavorable can give you results that are profitable if one plays seldom and bets heavily . The road that will definitely end you up in a big disaster is playing an unfavorable game continuously . You can learn more about this by taking a day trading online.

Good sports die broke .

There are no sure things .

Markets don’t sleep, but traders do.

Dialog is okay if enlightenment is the goal of both.

A success that is accidentaly usually ends up a failure that is accidental.

Winning manifests both positive and negative aspects .

The things a few can do can’t be accomplished by man.

Take positions along the line of least resistance .

Sell off famine and purchase glut .

Sell news and buy rumors .

Bears and bulls can make money but hogs cannot .

Don’t buy at the bottom and always sell too early .

Purchase what isn’t going to fall in a bear market. Don’t purchase seomthing in a bull market that won’t go up .

Many reactions that were healthy have ended up fatal .

Watch out for a trend when market opinion seems one sided .

Patience is imporant . Wait for situations in which profit potentials seems unusually high .

Trade infrequently unless you’re trading plan reasonably requires you to take positions often .

Everyone can find fault with any maxim .

Put half your profits in a safety deposit box .

Money is easier to make than it is to keep .

Sure, the strong and the fast don’t always end up winning the battle, but you should bet on that.

MAXIMS FOR THE PESSIMIST

If it can go wrong, it will go wrong

No matter how great your results are, there is a person who will fake a better one.

It doesn’t matter the results, someone will work to misinterpret it .

In any collection of data , that figure that seems to be totally correct - is usually the mistake .

There’s always a way to get a wrong number, even if it’s impossible .

Wide is the road that leads you to destruction.

FUZZY MAXIMS

Cut you’re losses. Let you’re profits run .

( it’s like telling somebody to stay happy and healthy . )

On down days, only buy . Sell only on up days .

Only going to the hard knock school will give you better teaching than a day trading online.

Trade For A Living

Learn to trade the E-mini using David Marsh’s The Tick Trader®, to earn 1 point  day trading the S&P 500 and Dow E mini Futures Markets.

Marsh’s company, E-mini Trading Strategies offers a  30 Day Double-Your-Money-Back-Guarantee which states The Tick Trader Method will achieve a minimum of 1 point a day.

If you are or haven been interested in day trading and the possibility of trading for a living, take the time to research this course. David Marsh makes himself availabe to talk with potential students, so you can ask as many questions as you like.

Visit his website and read everything especially his daily blog in which he recaps every single trading day. You will also gain insight into the type of man that he is.

His emini trading strategies are not difficult to learn.Daytrading is not for everybody and you need to have the discipline to follow ALL the rules. The eminis can be traded from home or anywhere that you have a computer and high speed internet connection.

If you have a basic understanding of the futures market and trading, you can begin trading this method in less than a single day.

You should have a basic understanding of charts, technical indicators, and order placement. Basically, you should have a decent knowledge of the markets before taking the course.

He has a Beginner’s Pimer for those with lttle or no experience.

The system’s goal is to make a one point profit each day. A daily income is your goal.This is a consistent and conservative approach to earn daily income.

It trades the same exact way each and every day, and it is usually finished for the day early in the morning. The rest of the time is yours to do as you please.

Most people work 40 or more hours at a job or business and have very little time for themselves and family. It simply does not have to be that way

It is possible to spend 30 to 90 minutes a day trading the e-mini markets to earn your living. Day trading is a great way of life.

Marsh’s professional training offers you this opportunity.

Trading The Emini

Well, it’s been a long, and painful ride trading the stock market, and a number of traders fell out of that vehicle back up the road. So, where are they? Did they quit or switch to something else?

We can’t speak for all of them but a lot of them did switch to the E-mini Indexes. That’s right, the E-mini indexes. The CME’s E-mini S&P / NASDAQ / Russell 2000 contracts, and the Chicago Board of Trade’s Mini Dow are the hottest things going and for good reason. Unmatched for consistent volatility and tops in liquidity, these incredible markets are “gold-mines” for the trader looking for a real opportunity to trade profitably again.

For day trading or intra-day trading, finding the right market vehicle is one of the most important steps. E-mini stock index futures have become very popular trading vehicles in the past few years due to having certain prized characteristics that other markets just don’t have - certainly not all together … at the same time … in the same market. Honestly, if you were to have total freedom to design the most ideal market for short-term trading, your “dream market”, would probably fall short of what these E-mini index futures have to offer the day trader.

Currently, the E-mini Russell 2000 futures and the CBOT’s Mini-DOW futures are the hot ticket due to their smooth patterns and larger number of increments in a move.

To list all of the advantages of trading these markets would require lots of ink and a thick pad, but some of the highlights include the unique combination of high volatility, high liquidity, high leverage, and the ability to trade with 100 percent electronic order execution platforms, which negates the need for pit or floor broker involvement. Add to that minimal slippage, tight spreads, no uptick rule, ability to short as easily as going long, absolutely no market research to do, much less time consuming than other futures, very low commissions, great short-term tax advantages, hedging opportunities, and no accounting mine fields. That means these markets are, and always will be, totally fair. No market makers, no specialists, no corruption, no manipulation, no insider trading and no scandals to have to deal with. That alone is worth the switch from other futures contracts.

Methods and Systems - Do They Matter?

Any of the above elements can have a substantial impact on your bottom line. Your success is the direct result of your choice of trading market and your choice of trading method. The fact that the E-minis have experienced explosive growth over just the last few years is no accident. A lot of traders are making the right choice there. And the E-mini Russell 2000 has now taken over as the contract with the most intraday move, most likely because it’s a small cap stock index futures contract.

But what about the method? Does it matter? You bet it does. A trading method must fit your style of trading as well as your individual personality.

Before we discuss what a trader needs, let’s take a minute to discuss what the trader doesn’t need. In recent years, the trend has been toward brutal complexity or black box simplicity. From one extreme to the other, the truth is that neither trading method works very well. Complexity breeds fatigue. Fatigue is the father of frustration. Frustration is the mother of failure. With a complex approach you always find at least one element that is not lined up exactly the way it should, and you will end up guessing anyway. Most people aren’t super-human computer heads, and complex methods involving multiple charts and multiple indicators don’t work very well for them, but thousands of dollars are spent until the trader realizes the secret to success lies in simplicity.

Now they go the other way … in search of the Holy Grail … that magical black box that will turn their computer into a veritable money machine as it does the buy and sell decisions for them, because they no longer have the confidence to make those decisions for themselves. These are the same people who wouldn’t think of risking their lives by letting a computer drive them to work, but they think nothing of risking their financial future to a computer that doesn’t even know when Greenspan is about to speak. Investors who believe in the myth that they can just have a computer program to manage their money while they sit back and collect the never-ending checks are not realistic.

The long and short of software-based systems is the undeniable fact that success cannot be purchased. It must be earned, and it takes commitment and dedication. Think about it. If there really were a software-based system that made money in long-term, all the big financial institutions would own it and take all the money out of the market and leave nothing for the rest of us. If you owned one that was making money hand over fist, would you sell it for any price? Probably not. The reason that a black box software cannot be effective for very long is because it has been programmed based on past market data. The fact is that market dynamics are always changing and a program is unable to recognize that. But when you know how to be flexible with the market dynamic changes, you can have a good control over your trades. So much for black boxes.

But what about trading methods? You’ve heard the expression “if you want something done right, do it yourself.” That expression goes double for the trader. Trading success is nothing more than finding the market that offers the greatest consistent profit potential and then finding a good, reliable, accurate and simple trading method that works for you. Not just here or there, or now and then. You want it to work on a consistent and ongoing basis because, let’s face it, you want to be able to make money for the long haul.

Are we talking about a holy grail again? Not at all. Mastering a proven method means you’re the star, not your computer. You’re in total control of your trades and your financial destiny. Now we come to the really important question, “Is there a teachable methodology that works?”

By now, hopefully, you know that complexity doesn’t exactly correlate to profitability, and the Holy Grail lies somewhere between the fountain of youth and the tooth fairy. If you’re not already too jaded to believe that trading success does exist and is within your grasp, then let’s talk about a simple approach. By combining this simple method with the high tech power of the E-mini indexes, the result should be a match made in heaven.

If you trade five contracts in a trade, for example, and gain just one E-mini Russell 2000 point on that trade, you would gross $500/day. That’s $10,000 a month or $120,000 per year, before commissions.

Why do you think the E-minis are now being called “the most successful product ever launched in the financial industry?” Of course, to be fair, you can lose the same amount if the market goes against you. The question is how do we manage the risk and increase the potential all the time to experience more winners than losers?

Commissions are amazingly low for this type of trading as are the margin requirements, but they both vary among different brokerage firms. Achieving a point or two per day should not be an unreachable goal - especially when you utilize a high probability trading strategy combined with sound money management techniques and a disciplined trading approach. Combine this with today’s technology in advanced 100% electronic trading platforms, and you might begin to imagine the possibilities … like getting in and out of trades at will, in as little as one second, without relying on a pit broker.

Where is the Market Going?

Take a look at the one-minute chart of the E-mini S&P 500 or E-mini Russell 2000, and you’ll notice something. The vast majority of the time, the index moves up or down at least a couple of points or more every five to 20 minutes, except possibly during lunch. This type of price fluctuation provides excellent trading opportunities over and over again throughout the day and, thus, one could make a couple of points and call it quits for the day. Making two points a day as a goal is a very conservative approach.

To increase the odds in your favor, avoid over-trading, and filter out price noise, you can adopt to a simple yet powerful trading methodology that seamlessly blends squeaky tight stops, highly accurate signals and sound money management approaches to achieve superb trading goals.

Most traditional methods of trading utilize multiple time frame charts. The 1, 5, 10, 15 and 30-minute charts are all supposed to somehow give us some magical power and accuracy when these charts confirm a certain price movement. The biggest disadvantage of those methods, in general, is missing a lot of opportunities. For instance, if we have a four-point move total on a one-minute chart, we can get in and out of that move and make a couple of points from it with ease. But if we want to wait for a five-minute chart to confirm a 10-minute chart to confirm a 15-minute chart, etc., by the time they show the confirmation, guess what? - the four-point move is over. Even if we use a single five-minute chart, 90 percent of our signals are never seen.

With multiple time frames, we miss a lot of opportunities to catch the small movements, such as a couple of points which could be a substantial gain depending on how many contracts are being traded. A single 30 Second candlestick chart and one index and no indicators combine forces to seek out even the slightest moves in the market and let you turn them into quick in-and-out trades.

The difference between this chart and the multiple time frame charts can be compared to two weathermen. One has to prepare the five-day forecast by trying to harness the number-crunching power of millions of dollars of computer equipment and pour over decades of charts and data. In the end, the public scolds him (or her) because something is usually wrong - especially that fourth and fifth day. The farther out the forecast, the worse it gets. The other weatherman, however, is praised daily because he’s almost always right. You see, his job is to prepare the weather forecast for just the next five to ten minutes. Put a thermometer in your hand and you could do his job just as well! That’s because, by predicting the weather for just the next few minutes, you don’t have to deal with all the random variables that the other weatherman does.

It’s the same with trading the indexes. When we use multiple time frame charts, we’re trying to predict trends by trying to predict some price the market will be at somewhere off in the future. An hour, a day, a week into the future … the farther out you go, the worse it gets, because you’re trying to predict all the thousands of big and little events that will shape the future direction of the market.

But how about predicting the market direction for the next five minutes or so? What if we used the tremendous power of your right brain’s intuition, based upon simple Elliott Wave pattern recognition, without too much emphasis on classic Elliott Wave counting, and we let the natural tendency of the market itself tell us how far it would go in that direction? It’s starting to make a lot of sense now, isn’t it? You bet it does.

Most traders pursue one school of thought in their trading. Some would approach the market using pattern recognition methods and wait for the high probability patterns to happen. Some other traders use technical analysis to predict the next market price movement. Some use astrology, news, and a number of other means to get “the answer.”

We have found that combining the legendary high-probability Elliott Wave patterns with one index and no indicators, is the single most accurate way to determine the highest possible probability for buy and sell points in certain time frames of the day. The best hours are the first and last two hours of the market. In ideal volatile and liquid markets such as the E-Minis, this is an excellent approach to trade. Does this mean that we can only expect to achieve small two-point profits in our trades? In this model, it is possible to accurately detect those long trends at their very earliest stage and trade in their direction.

Treading the Waters Lightly

Day trading is like most other businesses. Based on statistics, 90 percent of new businesses fail in the first year or two. There are three basic reasons for this. First is under-capitalization, the second is lack of a reliable business planning, and third is lack of management. Any of the above factors can cause a business to fail, but still there are many people who try to fulfill their dreams of owning their own business. Interestingly, the same statistics and rules apply to the trading industry. A trader may fail for lacking one or more of the same elements such as being under-capitalized, not having a proven trading method and money management, and lack of discipline or management to implement the plan correctly.

With today’s technology, it is easier than ever before to go through the proper steps and stages to develop and master a trading plan and to implement that plan with no initial capital risk exposure in order to make sure that the method and the plan works well. After mastering your method and adapting it to fit your personality and financial status, you can test it in simulated trading to find out how viable your trading method is without risking real money. This no-risk trial proves that your business plan is good and effective. I always urge every one to achieve a total of at least 20 consecutive days of simulated trading success under different market personalities before he even considers trading with real money. As most traders will attest, that’s almost impossible without a very powerful and accurate trading method plus a very good personal mastery of that method. So, more is involved than just having a good plan to achieve the success that the trader desires.

The next step, assuming that the trader is not under-capitalized, is the correct management (or implementation) of that plan. This step will probably be the most challenging part because it involves putting actual risk capital in your trades. The training wheels are off. We have learned that the best way to make a smooth transition from simulation to the “real deal” stage is to begin trading with a small amount of money, perhaps as little as one contract. The least amount of money will bring the least amount of human factors (emotions) in the picture. There will be time for fear, greed and uncertainty later.

After proving that the method works in simulation, followed by small money trading, everything should become second nature to the trader as confidence grows and skills are honed. Patience, discipline and focus take control and the trader transforms into a fearless warrior with an unbeatable arsenal of trading weapons. Then by slowly and carefully increasing the trading size by adding more contracts (based on what money management dictates), the trader enjoys the fruits of his learning labor, and the rewards go even beyond the financial. It takes work, dedication and commitment in the beginning to get to the positive working stage, but it is well worth the effort. …

It’s been just a few years since the E-mini “craze” began, and today it’s no longer a craze, but a boon to a variety of traders who may not have the wherewithal to trade individual stocks, but want to look at the broader market on a more limited basis. It will be interesting to see in future years how many more of these instruments are conceived, born and continue their lives based on the same brilliant concept.

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